Post by Brooksiders Return!! on Feb 28, 2019 14:43:48 GMT
And that is the important thing here. This isn't about takeovers by the Supporters Trust. It is about changing the company constitution, which is coming on for 100 years old, and has changed very little in that time. The present constitution has not kept up with inflation at all. Back in the 1920's to become a shareholder of WCFC, you had to buy a minimum of 500 shares at a price of £1 each. That £1 in 1920 is now worth getting on close to £50 today. So in order to buy the minimum number of shares, you'd need to invest today's equivalent of £25,000. Even with todays minimum of 50 shares, you'd still need a minimum investment of £2500, and to own 1% of the company (3000) you'd need to shell out £150,000.
If a share investment model was to be used to raise funds, then regular new share classes should have been issued, at prices based on inflatory figures. But thats not happened, so the opportunity to raise funds through shares has disappeared, along with the assets, the ground, and the league status of the football club.
The company are proposing a change of constitution to allow for a transition to a CBS Community Benefit Society. These used to be called Industrial Provident Societies, the most common of which are Building Societies. In order to transition, the company has two options, they could set up their own CBS, or they could take advantage of an existing CBS as an instrument for change. So, the Board have a choice of spending money on setting up a new CBS, which would involve winding up the existing company, and hoping that a new company would be accepted by the FA , which could involve further relegations if deemed a new club, OR, transition via an existing CBS, as ultimate owners, and maintaining a Ltd company to manage footballing needs. This is a similar arrangement to many other football clubs like Lewes and Exeter.
OR, the club continues to look for investors, as they have for the last 50+ years! And its important to understand that investors are more likely to invest in a CBS than an asset poor, loss making limited company. Lewes raised over £850,000 for their community 3G pitch, which included £600,000 in various community grants, and £200,000 as an EIS qualifying share scheme, aimed very much at local corporates, who were able to take advantage of tax rebates as part of EIS.
If a share investment model was to be used to raise funds, then regular new share classes should have been issued, at prices based on inflatory figures. But thats not happened, so the opportunity to raise funds through shares has disappeared, along with the assets, the ground, and the league status of the football club.
The company are proposing a change of constitution to allow for a transition to a CBS Community Benefit Society. These used to be called Industrial Provident Societies, the most common of which are Building Societies. In order to transition, the company has two options, they could set up their own CBS, or they could take advantage of an existing CBS as an instrument for change. So, the Board have a choice of spending money on setting up a new CBS, which would involve winding up the existing company, and hoping that a new company would be accepted by the FA , which could involve further relegations if deemed a new club, OR, transition via an existing CBS, as ultimate owners, and maintaining a Ltd company to manage footballing needs. This is a similar arrangement to many other football clubs like Lewes and Exeter.
OR, the club continues to look for investors, as they have for the last 50+ years! And its important to understand that investors are more likely to invest in a CBS than an asset poor, loss making limited company. Lewes raised over £850,000 for their community 3G pitch, which included £600,000 in various community grants, and £200,000 as an EIS qualifying share scheme, aimed very much at local corporates, who were able to take advantage of tax rebates as part of EIS.