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Fanshares... anyone share a thought?

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I've just read an article on the Telegraph website about a scheme set up by Arsenal fans that allows real football fans like you and me to stake a claim in the shares of their club... it's called Arsenal Fan Share ? funnily enough.

This is news to me... and, not knowing too much about it, I was wondering if anyone knew anything more specific about it.

Also, does anyone know of a similar scheme set up by Evertonians? The article states "Arsenal are already one of the last major clubs in England to have supporters directly involved in their ownership structure".

Does anyone know what this equates to at Goodison?
Joe Carroll, Wallasey     Posted 18/08/2010 at 20:25:26

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Karl Masters
1   Posted 19/08/2010 at 00:49:32

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With Kenwright in charge this equates to nothing for Evertonians, Joe. Sadly.
Eric Myles
2   Posted 19/08/2010 at 02:14:48

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^What Karl said, it will dilute the current shareholders holdings percentage wise so is a non-starter in BK's books.
Alastair Bates
3   Posted 19/08/2010 at 08:31:05

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With any ?Share Scheme? the existing shareholders have to agree to create additional shares for the market, therefore, diluting their original percentage stake. Additionally ? and this is important for EFC ? is that, if a quantity of shares was created, then the value of those shares has to be underwritten by one or all the existing shareholders in case they new shares are not taken up.

So take EFC shares currently (as on ToffeeWeb);
Share Holding % Holding Value @ £1500
BCR Sports Ltd 8,146 23.27% £ 12,219,000
Bill Kenwright Ltd 7,053 20.15% £ 10,579,500
Jon Vincent Woods 3,209 9.17% £ 4,813,500
Jon Woods Ltd 3,203 9.15% £ 4,804,500
Grantchester 2,773 7.92% £ 4,159,500
Arthur John Abercromby 1,830 5.23% £ 2,745,000
Bill Kenwright 973 2.78% £ 1,459,500
Barnett Waddingham Trustees Scotland Ltd 973 2.78% £ 1,459,500
Philip David Carter 714 2.04% £ 1,071,000
William Kenwright 473 1.35% £ 709,500
All Others - Small Shareholders 5,653 16.15% £ 8,479,500
35000 100.00% £ 52,500,000

So if a 100% Share Issue was to take place this could be the outcome;
Share Holding Following 100% Rights Issue % Holdings Proposed Value
BCR Sports Ltd 8146 11.64% £ 12,219,000.00
Bill Kenwright Ltd 7053 10.08% £ 10,579,500.00
Jon Vincent Woods 3209 4.58% £ 4,813,500.00
Jon Woods Ltd 3203 4.58% £ 4,804,500.00
Grantchester 2773 3.96% £ 4,159,500.00
Arthur John Abercromby 1830 2.61% £ 2,745,000.00
Bill Kenwright 973 1.39% £ 1,459,500.00
Barnett Waddingham Trustees Scotland Ltd 973 1.39% £ 1,459,500.00
Philip David Carter 714 1.02% £ 1,071,000.00
William Kenwright 473 0.68% £ 709,500.00
All Others - Small Shareholders 28986 41.41% £ 20,146,000.00
70000 100.00% £ 81,666,500.00

NEW INVESTOR / GROUP @ £1,500 p/share 11667 16.67% £ 17,500,000.00

Fans Share Issue @ £500 p/share 23333 33.33% £ 11,666,666.67

This would mean that the existing shareholders/new investors would have to put up the money to cover the overall share issue, approx £82 mil and that they want to invest £17.5 mil for a 16.67% share. Additionally, are there 23,333 supporters with a spare £500 to spend on an EFC Share?

This then dilutes all the existing shares in percentage terms but not financial terms and would give the club just over £29 mill which we all know would not pay off our debts.

So you see our predicament.

Rupert Sullivan
4   Posted 19/08/2010 at 09:08:13

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Alastair, is there any reson why the release of new shares would have to be limited in either price or quantity? The Arsenal plan details a reduction of existing stock to 1% of future value, thus issuing a further 99 shares for each existing share.

Even if the money would have to be put up before hand, is there any reson why EFC couldn't petition for future buyers and place the money aside until the appropriate values had been met? - Thus saving the existing shareholders the financial worries.

I wrote to BK about this idea a while ago and received no response, I suspect that the problem in this would arise from the lack of willingness of the existing shareholders to dilute their stake in EFC.
Jimmy Hacking
5   Posted 19/08/2010 at 09:31:58

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I would question how much "involvement" these Arsenal small shareholders have in the running of their club; buying a microscopically small % of your football club is surely something to be done purely for the "ooh look at me share certificate framed above the fireplace" factor.

We at Everton don't need thousands more small shareholders, we need a sugar daddy.
Gavin Ramejkis
6   Posted 19/08/2010 at 10:06:13

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Two major flaws in this, the first ? as clearly documented in the DK documents shown during the hearings ? is that not one board member or major shareholder is willing to sell or dilute their shareholdings in the club.

And equally as damning is the utter disdain that the Chairman holds shareholders in... shown in the club rule changes relating to shareholder meetings and rights.

Alastair Bates
7   Posted 19/08/2010 at 10:04:10

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Rupert (*4) In answer, No; however, if the shares on offer to a fanshare are not 'New Shares', the the money will be going to the shareholder who has given up that share.

Additionally EFC does not have money to put aside when you look at the accounts; if they did, then they have not been putting it in the right areas. I say this because, when I look at Spurs, they have been slowly purchasing property around their stadium for the past 10 to 15 years, thus enabling them to put forward plans to renovate on land they own.

I'd disagree with Jimmy (*5); I believe a well run club with a quality supporter group on the board can be successful. And EFC would / could work like that.

Marc Williams
8   Posted 19/08/2010 at 10:33:33

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I agree with Gavin (6), look at BK's tenure: from the new rules introdued to the "I'm NOT answering that question" etc etc

His attitude to this would surely be the same as that towards the potential buyers (we must have had enquiries about the club)......... "It's my trainset, I'm not sharing or selling, so fuck off!"
Jay Harris
9   Posted 19/08/2010 at 13:59:53

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We already have the option for fans to buy shares if the existing shareholders want to sell. The unfortunate thing is they don't and they have gone on record to say they will not dilute their shareholding.

What we don't have is a fans' representation group which could be set up without a fanshare scheme if the Chairman was as Blue as he claims and was prepared to communicate.

Now I don't want to turn this into another Kenwright bashing session but there is no doubt that Kenwright treats supporters with contempt and refuses to be answerable to anybody.

As Gavin says above, he arranged to have the clubs Articles of Association changed for the first time in the club's history, so that small shareholders could not challenge his decisions by calling an EGM... and, when asked directly by a shareholder whether the club was for sale and at what price, he refused to answer.

We will continue to get fed bullshit and no transparency while this man is in charge of EFC; while some succumb to his charm, a fanshare scheme is not on his agenda.

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