Good morning.
Now this another one of those rather meaty, lengthy ones. Those of a nervous disposition or with the attention span of a 5 year old may wish to either look away now or perhaps join us for the caption competition after lunch.
As some will realise by now I have been in pretty regular speaks of late with the Spurs Future mob. My goal was to bring clarity in my own mind at the very least to what is a muddled situation, the NDP.
I found the chaps I’ve spoken to so far to good eggs. This s a trade term. It means they are intelligent, forward thinking and receptive types. And frankly when all this is done and behind us, they will be owed a debt of gratitude for approaching a bloody horrible task with both good humour and a sense purpose that has to reflect the feelings of the majority of us.
So how did you like that proposal I referred to as a ‘Legacy Bond’ in a recent blog? As Jimmy Carr says towards the end of his live shows, ‘…oh, that was just to get you ready for this one…’
Spurs Future have submitted a £50million Community Share Proposal to THFC.
The proposal itself is, we believe, very sound and certainly can work to close any gap needed to make NDP viable, on the provision of course that RGF and advanced corporate sales also progress in the right direction. We have also had it looked over by a party more familiar with the financial model we have proposed.
Spurs Future
Which is good.
The only question mark now is if the club will run with it. Of course there will be a lot of discussions and agreements between all parties before it can be considered a final proposal. We hope that we have left enough room given enough implied direction throughout the proposal for that to happen. Certainly we have left ample space to delve further in to the legacy share idea.
Spurs Future
Which makes excellent sense.
The Proposal proper has been submitted in full then. I have a copy but it would be a bit previous to publish a document that Levy & Co have quite possibly yet to fully digest.
***
What I can do is a Q&A with myself asking the questions I want answered. I’ll be gently grilling the Spurs Future chaps in the very near future. You can obviously field your own questions in the usual manner.
What the hell is a Community Share when it’s at home?
It’s a simple way of raising money from communities through the sale of shares or bonds in order to finance enterprises serving a community purpose. Unlike charitable fundraising, investors can get interest on their money, even get their money back.
Triffic. So what’s the actual plan?
The sale, or offer for sale, of up to £50,000,000 of shares or bonds to
a community of at least 2500 people, to finance ventures serving a
community purpose.
I get that, but what’s the money for for?
Simply to make the NDP happen. To go that extra mile and make the NDP truly viable.
Sounds great. I’m not a millionaire, but do let me know how you get on.
There will be 250,000 shares issued. The minimum commitment is one share. The shares cost £200 each. The maximum one individual can own is a hundred shares.
I could run to that. How much do I make for letting us stay at The Lane, then?
You get no interest for the first 3 years. In year 4 you’re looking at 2 points above base.
Yeah, but I’ll be part of a pressure group and will be able to demand we buy Messi and Ronaldo and shout,’Levy out!’ in a boardroom when it doesn’t happen though?
No. This is nothing to do with the football side of things. Nor is it a ‘Get Rich Quick Scheme.’ This is about making sure the NDP happens and that the stable financial management of the Club isn’t damaged or abandoned in the process.
What say will I get for my £200? Or will all the ‘power’ be with the big boys investing lumps?
You’ll like this. Every investor gets one vote, irrespective of the number of shares they own. So when NDP matters are discussed, your voice will carry as powerfully as everyone else.
What about the small print? There’s always small print and plenty of it.
This is just a snapshot of the model that has been presented to the Board. To whet your whistle, if you like. Keep you in the loop. All the FSA end and legals are all very much in order and will be of course be available once the Board has had a butchers and a final proposal is hammered out.
***
Well I hope that gives you food for thought. I think this is is the right direction. There is still a long way to go of course.
BIOYC!
I’m in fuck it!!
Somebody get this gentleman a pen.
And a condom.
So, will the price of the shares rise and fall with the successes, or not, of the team? Will people be able to sell their shares for a profit?
See that’s part of my quandary. What profits on what?
I’m pretty sure the £50m couldn’t be floated on the stock market as a separate entity. It would be more like handing the money over to ENIC and hoping they at least give you your money back when they do sell.
The shares are a slow burn with a modest return. If people want to set out to make lots of money this is probably a poor investment.
Hence: could run to that. How much do I make for letting us stay at The Lane, then?
You get no interest for the first 3 years. In year 4 you’re looking at 2 points above base.
This is about enabling the NDP to take place without putting the business into a black hole of debt that would last a generation.
The performance of the team on the pitch isn’t entirely unrelated I guess as investors could in theory wake up one day and be clutching pieces of paper relating to a Championship side.
Shares in what? Sounds more like a low interest loan to ENIC. I’ll tell you what, I’ll wait for the full details before jumping to conclusions.
Anything that can realistically make it happen is cool with me. :daumen:
Exactly. Until further explanation of what’s being offered as a return on the “investment”, it’s impossible to judge the pros and cons, but, as HH says, it’s got to be motivated primarily by assisting the club move forward and not by personal greed. It does sound A LOT like a low interest loan to ENIC, but it’s one possible additional means toward an end for the common good. I think one possible angle to sweeten the deal could be the promise of added benefits to supporters who partake in the scheme, as I’ve outlined above. I for one would be a lot more enticed if some of my future spending with the club was offered added value for money on some level. That would make it feel a lot more like a 2-way street imo.
Well researched H.H. Two questions what happens if our club is bought by rich Arabs or other investors can yo sell your share for more or help block the takeover. Secondly do you have any say on naming rights or is the share just a long term saving scheme.
I’m not sure but that’s an excellent question Davspurs, is the best answer I can give.
Spurs Future and I will be doing a full interview in the coming weeks. Nail all the details and release the proposal in full at the same time.
Thanks H.H. for replying to my question your honesty humbles me. I now feel part of the Family to quote our old friend Sepp Bladdered. Coys.
Just a heads-up about the game today.
Stay off line between 2 and 4:30 if you’re watching on ESPN. They’re not showing it live. On TV at 4:30 KO at 2. :daumen:
Bunch of chancers. Why can’t we get it live? :dizzy2:
The scum are on live at 2:30. :pinch:
Ok, now I’m all for this idea! Not for the purpose of making a little bit of money, but as a way to see our club move onto the next level.
We all know that for spurs to improve we need more income for the club. And a bigger stadium would do this! I’d even give my right hand to see us get a new stadium.
My only question is, as its not a share of THFC that we would be buying, who pays back the interest in the 4th year? I assume its Levy and Co, so then its almost like they are renting some of the stadium from the share holders.
With that in mind how about we did it like a mortgage, but we the fans are lending the club the money and not the bank.
Do the same thing as this idea where nothing is paid for the first few years but then we get the £200 plus say, £50 interest paid back to us over 10 years.
As I said before I’m not wanting to do this to make money but as a way to help out my club!
What do you guys think?
I think the proposal is exactly that – a loan.
I suppose the question is do enough people have the £200 to loan?
Wouldn’t it be great to be able to actually raise enough to buy the club outright. Now that really would be something.