Trust Shareholding - Long Term

[Dave_Og]

From another thread but one worthy of specific debate/attention I think.

 

QUOTE (OLDHAMADE @ Sep 10 2010, 17:54 PM)

I think OAFC should do what my workplace do and run a Share Option scheme (I put in £250 a month until 2013) Actually buying into the club would be far more productive and should yield a return for the investors who will no doubts invest more.

Just a thought.

 

 

 

That is a fantastic idea. I would strongly suggest that the trust should look in to this in great detail - there are significant legal considerations in setting such a scheme up. This could result in the trust getting a meamingful stake oin the club over a period of time, offer existing shareholders a way out over the same period which I imagine they want.

 

Realistically no-one is going to put £250 a month in but I imagine that sort of figure relates to a listed company of significant size.

 

Would anyone from the trust like to comment? This represents the sort of long term thinking that should be the focus of the trust in my opinion.

Edited September 11, 2010 by Dave_Og

[Takemeanywhere]

From another thread but one worthy of specific debate/attention I think.

 

QUOTE (OLDHAMADE @ Sep 10 2010, 17:54 PM)

I think OAFC should do what my workplace do and run a Share Option scheme (I put in £250 a month until 2013) Actually buying into the club would be far more productive and should yield a return for the investors who will no doubts invest more.

Just a thought.

 

 

 

That is a fantastic idea. I would strongly suggest that the trust should look in to this in great detail - there are significant legal considerations in setting such a scheme up. This could result in the trust getting a meamingful stake oin the club over a period of time, offer existing shareholders a way out over the same period which I imagine they want.

 

Realistically no-one is going to put £250 a month in but I imagine that sort of figure relates to a listed company of significant size.

 

Would anyone from the trust like to comment? This represents the sort of long term thinking that should be the focus of the trust in my opinion.

 

I'll post the same response that I posted in the other thread and leave it to the admin to decide if a merge is required:

 

Share option schemes work for PLC-size companies, where there is significant value to the company, significant share capital and where the shares are freely available to buy and sell. The Trust is committed to seeking new investment into the club and believe me, every Trust director wishes they could pick the phone up to some multi-millionaire or other. Sadly, that is not the case.

 

The difficulty is not in raising enough to buy the existing shares. Afterall, the club is a loss making limited company and every year, somebody has to put their hand in their pocket to the tune of at least half a million pounds. The issue is that any investor (whether that is a single investor or a consortium) would require significant funding to meet the outgoings of the club year on year.

 

Finally, even if all of the above were disregarded, as the shares are owned privately, it would not be the place of the Trust to organise such a scheme. Only the shareholders themselves could agree to sell their stake and by whatever means they see fit.

 

It's a lovely idea to think that the fans could own the club. However, if it ever happened, we would have to cut our cloth accordingly and look to break-even each season. I would suggest that we would quickly end up playing non-league football if we tried that. The best thing we as fans can do at present is try to persuade lapsed fans to come back through the turnstiles. The last two home gates have been extremely disappointing and we all know that we need home gates of 6,000 to break-even. The only other request I would make is that if anybody knows a multi-millionaire who doesn't mind losing a 'few quid', persuade him/her to make contact with Mr Simon Corney.

[RobOAFC]

I'll post the same response that I posted in the other thread and leave it to the admin to decide if a merge is required:

 

Share option schemes work for PLC-size companies, where there is significant value to the company, significant share capital and where the shares are freely available to buy and sell. The Trust is committed to seeking new investment into the club and believe me, every Trust director wishes they could pick the phone up to some multi-millionaire or other. Sadly, that is not the case.

 

The difficulty is not in raising enough to buy the existing shares. Afterall, the club is a loss making limited company and every year, somebody has to put their hand in their pocket to the tune of at least half a million pounds. The issue is that any investor (whether that is a single investor or a consortium) would require significant funding to meet the outgoings of the club year on year.

 

Finally, even if all of the above were disregarded, as the shares are owned privately, it would not be the place of the Trust to organise such a scheme. Only the shareholders themselves could agree to sell their stake and by whatever means they see fit.

 

It's a lovely idea to think that the fans could own the club. However, if it ever happened, we would have to cut our cloth accordingly and look to break-even each season. I would suggest that we would quickly end up playing non-league football if we tried that. The best thing we as fans can do at present is try to persuade lapsed fans to come back through the turnstiles. The last two home gates have been extremely disappointing and we all know that we need home gates of 6,000 to break-even. The only other request I would make is that if anybody knows a multi-millionaire who doesn't mind losing a 'few quid', persuade him/her to make contact with Mr Simon Corney.

 

 

Dont agree with the bold bit. We needed crowds of about 6,500 a few years in moores and shez's first season to break even. Given the budget has been cut 3 seasons runnning i would imagine crowds of 5,000 - 5,500 would easily break even

[Dave_Og]

I'll post the same response that I posted in the other thread and leave it to the admin to decide if a merge is required:

 

Share option schemes work for PLC-size companies, where there is significant value to the company, significant share capital and where the shares are freely available to buy and sell. The Trust is committed to seeking new investment into the club and believe me, every Trust director wishes they could pick the phone up to some multi-millionaire or other. Sadly, that is not the case.

 

The difficulty is not in raising enough to buy the existing shares. Afterall, the club is a loss making limited company and every year, somebody has to put their hand in their pocket to the tune of at least half a million pounds. The issue is that any investor (whether that is a single investor or a consortium) would require significant funding to meet the outgoings of the club year on year.

 

Finally, even if all of the above were disregarded, as the shares are owned privately, it would not be the place of the Trust to organise such a scheme. Only the shareholders themselves could agree to sell their stake and by whatever means they see fit.

 

It's a lovely idea to think that the fans could own the club. However, if it ever happened, we would have to cut our cloth accordingly and look to break-even each season. I would suggest that we would quickly end up playing non-league football if we tried that. The best thing we as fans can do at present is try to persuade lapsed fans to come back through the turnstiles. The last two home gates have been extremely disappointing and we all know that we need home gates of 6,000 to break-even. The only other request I would make is that if anybody knows a multi-millionaire who doesn't mind losing a 'few quid', persuade him/her to make contact with Mr Simon Corney.

 

 

Clearly a traditional share option scheme woudl not work but a scheme to buy more shares over a period of time could.

 

[Takemeanywhere]

Dont agree with the bold bit. We needed crowds of about 6,500 a few years in moores and shez's first season to break even. Given the budget has been cut 3 seasons runnning i would imagine crowds of 5,000 - 5,500 would easily break even

 

Last season's budget was the same as the year before, so I'm not sure where the '3 seasons running' comes from. Yes, the budget has been cut this season, so maybe it's 5,500 now. Whatever, we still need more fans paying in on a matchday.

[Takemeanywhere]

Clearly a traditional share option scheme woudl not work but a scheme to buy more shares over a period of time could.

 

I'm sure it could but then what? How does the club then afford the daily outgoings? Owning the shares does not solve the issues.

[al_bro]

Last season's budget was the same as the year before, so I'm not sure where the '3 seasons running' comes from. Yes, the budget has been cut this season, so maybe it's 5,500 now. Whatever, we still need more fans paying in on a matchday.

True. The ONLY way OAFC can survive is people coming through the gate. We are in a downward spiral which will almost certainly lead to us going out of business. I can't honestly see any way out of it. Crowds drop = Lower budget = Lower qualiity players = Poorer results = Lower crowds etc If we coiuld break the spiral and get much better gates, then the spiral can be turned around. The key question is How can we increase gates? Good results and cup runs help, but somehow we need to get 8/9000 people in the ground, and for a town the size of Oldham that should not be a problem.

[opinions4u]

Owning the shares does not solve the issues.

Absolutely spot on.

 

Journey a few miles round the M60 to Stockport, where their Trust held 100% of the shares until 16 months ago. When they went in to administration.