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.
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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.
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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!
As always, the devil will be in the detail but anything that helps the fans play an active role in the development of the club is worth developing in my book.
One thing is for certain and that this is a far more progressive form of engagement with the club. Being part of the solution of the problem we all know we face in terms of ground capacity rather than adopting the 1970’s flat-cap approach of chuntering ‘bloody management’ and going on strike with a bed sheet.
In terms of the ‘ownership’ issues, there seems to be a little confusion that would need clarified. As I read it, these are bonds, not shares and as such they are a form of raising revenue without needing the further issue of shares. It would need detailed how a bond can give you a voting right as a savings bond with a bank wouldn’t give you a voting right at the shareholders meeting. But… As I say, the devil’s in the detail.
I like the idea of the offer only being open to One Hotspur members, but HH, can I suggest a caveat for you to raise with Spurs Future, that there should be a cut-off date for the qualifying membership. With the club still offering memberships, it would be fairly simple to register, then apply for your bonds as a non-interested party looking to tie money up in the club. Just an idea.
Good stuff anyway, and in any small form (with a baby coming up ‘ouch’) I look forward to getting involved. This is a nice middle ground for those like me who would be able to afford say a 5 or 10-year debenture seat.
Thanks Astro, saved me some wind.
These would definitely be bonds of some sort. Thus this is definitely a loan to the club and nothing else. Obviously we don’t know any details yet, but already we can draw some conclusions.
1. The club will be interested if, and only if, this grants them funding more cheaply than they would be able to get from a more typical lending institution, such as a bank.
2. It is extremely unlikely that it will be a particularly robust investment from a purely risk/reward point of view.
3. From point 2 follows that only people who have an interest beyond pure financial gain should be attracted (vested interest in the club succeeding on the pitch, or the rejuvenation of the surrounding area, for example).
*Sorry… Not rolling in dough… Should read Would NOT be able to afford a debenture seat*
Spare change guv?
For 200 sobs you can have half an hour with one of my ex wives.
Just make sure your testicles are still attached before you leave
sloppy seconds ? thanks but no thanks
I would would be happy to buy a share in a decent striker.
If Levy would get the team to sign the share certificate they would be worth the money.
A piece of Spurs history innit.
sounds good H.H
keep us updated.the bit i like most is:-
“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. “