Investing in football clubs is no longer the preserve of the ultra-high net worth elite or the super-rich from the Middle East and Asia.
Stevenage Football Club is offering everybody from high net worth individuals to everyday investors a chance to buy shares in the team, in a bid to fund a plan to get it promoted through the English Football League (EFL) divisions.
Investment is available through sports investment platform Tifosy.
Stevenage chairman Phil Wallace is aiming to raise £1.2m ($1.52m, €1.35m) by offering 12% equity in the club.
Shares are priced at £25 each, with a minimum subscription of £1,000 for 40 shares.
Approach by investors
Wallace said: “Since I made it known that I have been thinking of taking on new investors, I have been approached by a number of people wanting a minority stake or to buy the club, but I think there’s a lot more to come from Stevenage and I want to be part of that.
“We like to do things differently at Stevenage and we have shown that with a lot of things, like launching the first ever online bond in English football.”
Tifosy launched English football’s first online bond with Stevenage in 2017, raising £600,000 in six weeks to build a new north stand.
Construction will be completed this summer, increasing the stadium capacity by 1,400 seats.
Ambition
Funds raised through the Stevenage FC Equity Offering will primarily be used to increase the club’s wage and transfer budget to make Stevenage FC more competitive, with the immediate aim of securing promotion to EFL League One and, ultimately, into the EFL Championship.
Shareholders will share in the club’s success through dividends only available to new investors.
They will receive a 25% dividend upon promotion to EFL League One, and an additional 75% dividend if the club reaches the EFL Championship.
Investors will also get voting rights on a one share one vote basis, and will be consulted on key issues relating to the club’s identity, such as kit design, club colours and the location of the stadium.
Back to the fans
“It’s hardly ever possible to buy shares in a football club, but we are offering people the chance to do that,” Wallace added. “We want to start competing more seriously for promotion and so we need to invest.
“The money we get from this new investment will go into the playing budget and help us achieve our targets on the pitch.
“These are real shares, with voting rights. People get to be real shareholders.
“The first reason you buy shares is to get a return, which is why we have included promotion dividends. We believe that by investing in the squad we can make that happen. It is really a way to share our success with our supporters.”
“We want to bring people closer to the club, give them more access and get them involved like never before.”
Tifosy
The sports investment platform was co-founded by former Italian footballer and manager Gianluca Vialli and chief executive Fausto Zanetton, who previously advised some of the largest companies in the media, technology and sports sectors during his banking career.
Clubs that have previously raised funds through Tifosy include Norwich City, which raised £5m to build a state-of-the-art academy, and Italian clubs Pescara Calcio and Frosinone Calcio which raised funds for infrastructure and academy projects.
