The following is a letter which was sent to all MELBOURNEfc Members on Thursday night.

As an important member of the Red and Blue family, I write to you today to update you on our work to date, and about our future plans.

It was your Board’s decision that, in order to create a sustainable Club, a new CEO would be required.  This led to the cessation of Paul McNamee’s contract.  We bear Paul no ill, but we do firmly believe that the skills needed for the future of the MFC are to be found elsewhere.

So, the immediate future is about sorting out the finances of the Club.

Cost controls have now been implemented.

Expenditure will be kept to a minimum, and controls are in place.

The new Board has been structured to specifically address the immediate financial issue, and the medium term strategy we need to employ if we are to create the sustainable Club we all so passionately desire.

Following an extensive review, we have identified five pillars that will become our focus, and the basis of our direction.  Individual Board members have been assigned to subcommittees to manage these areas.  Those five areas are as follows:

FINANCIAL VIABILITY – At the end of this financial year, our debt will have blown out to $5 million.  This is unsustainable.  Board member, Stuart Grimshaw - an executive of the Commonwealth Bank with extensive financial experience, both here and overseas - along with Vice President Guy Jalland, commercial lawyer and senior executive with Consolidated Press Holdings, will be responsible for the management of our finances.

ON-FIELD – A committee of Board members will be assisting Dean Bailey and Chris Connolly to manage our football operations.  This group consists of past player and Club hero, Andrew Leoncelli, along with David Thurin and Peter Szental.

ORGANISATION – This group will address the important issue of ensuring that we find the very best home base for our Club, as well as dealing with matters of governance, remuneration and performance.  The Board members assigned to manage these important areas are as follows:  Karen Hayes, Peter Szental, Stuart Grimshaw, Guy Jalland and David Thurin.

BRAND STRENGTH –  Board member Russel Howcroft - former Chairman of the Advertising Federation of Australia and current Managing Director of George Patterson Y&R, one of the country’s leading advertising agencies  - will address the serious questions raised about the Melbourne Football Club brand, and our marketing strategies for the future.

STAKEHOLDERS – Our stakeholder relationships - including our relationships with the MCC, AFL, Sponsors, Members, our Coterie, and Government - will be addressed by Don McLardy, Peter Spargo, Jim Stynes and Guy Jalland.

For a complete list of the Club’s Board members, and details regarding their extensive commercial experience, click here

We believe this clear focus and committee structure will enable the Board to ensure that due diligence is given to every decision we make, and will provide the very best outcomes for our supporters and the Melbourne Football Club.

During this process, we will have to make some difficult decisions, from which we will not shy away.

One of these decisions has been to appoint a new CEO.  We are fortunate to have Board member Peter Spargo - an experienced and successful business person in his own right - stepping into this role in an interim capacity, at no cost to the Club.  Thanks to Peter’s contribution, the financial implications of replacing the CEO will not have any additional impact on our end of year forecast.

In the short term, we will commence the search for a new CEO.  We have identified the qualities we need in the new CEO, and this search will begin shortly.

In addition, everyone at the Club is working hard on the plans to demolish our debt during the month of August, so that we will be here - playing footy and entertaining our fans - for many years to come.

Yours sincerely,

Jim Stynes, President
Peter Spargo, Interim CEO and the Melbourne Football Club Board.