Five reasons why Yorkshire CCC shouldn’t rush into demutualisation: Michael Stephenson

The group is growing very quickly and its members have identified a multitude of reasons for the club to take their time and get their investment plans right. Here are five, straight off the bat, so to speak.

First, legislation is currently in Parliament that, if passed, would allow mutual societies like Yorkshire to access large amounts of external private capital. Why can’t the Yorkshire Board wait a few months to see if co-operatives gain extra funding possibilities rather than rush headlong toward what appears to be a pre-determined dash to demutualisation?

Second, The England and Wales Cricket Board are yet to announce their allocation of Test matches up to the late 2030s. Given that one of the major reasons the club cited for a hasty demutualisation was that without increased capacity Headingley would miss out on Test matches in the future, it would be sheer folly to make a rash decision before we know the ECB’s intentions. All the indications are that Headingley will soon receive a good allocation of international cricket for the next decade and more so why not wait until all the facts are in?

Third, back in May the chairman proposed a number of draconian rule changes that would significantly limit the number of members who would be eligible to a vote on demutualisation. At the time of writing, the Financial Conduct Authority (the regulator for mutual societies) has not legally ratified those proposed changes. One of those rules stripped members of a vote if they did not renew their membership by December 31. That date is only two months away and the club are yet to allow members to renew their membership for 2027. Forcing a vote on a matter of such importance in a rapidly closing time window would be grossly unfair and undemocratic.

Fourth, a number of Yorkshire members are currently putting together an application to Leeds City Council to have Headingley designated as an Asset of Community Value. If successful, it would ensure that our historic ground is properly recognised as something more than just a piece of commercial real estate. Given that Leeds United’s ground Elland Road has already been designated in this way, there is every possibility that the application will succeed. This would give a cast iron guarantee that Headingley would continue to be used for cricket for generations to come.

Fifth, and most importantly, members still don’t have any significant details on what the club will actually look like after demutualisation. No costings, no detailed business case, no investors, no certainty on what the new company structure would be and where they would be based, no confirmation of shareholding and no guarantee of voting rights for members.

Even worse, since the club released their glossy “Chasing Glory” brochure earlier this year, the chairman has massively expanded his plans for Headingley to include a sky bar, new corporate hospitality facilities behind the Western Terrace, a 150 bedroom hotel and a 3,000 seat entertainment centre.

The members I speak to on a regular basis are not prepared to sign a blank cheque for a pipe dream that is growing out of all proportion to the level of detailed information so far provided to us on its feasibility, sustainability and necessity.

It’s not too late for the club to pause for thought, take into account changing circumstances and make sure they’re on the right side of history.

Michael Stephenson is a co-founder of Yorkshire Members Voice