June 11- English League 2 club Stevenage has turned to sports investment platform Tifosy to raise £1.2 million by offering 12% equity in the club.
Shares are priced at £25 each, with a minimum subscription of £1,000 for 40 shares.
Money raised via the equity offering will primarily be used to increase the club’s wage and transfer budget to make it more competitive, “with the immediate aim of securing promotion to EFL League One and, ultimately, into the EFL Championship. The Club finished a point off the EFL League Two play-off places in the 2018/19 season,” said a club press release.
This is the second time Stevenage have turned to Tifosy to raise finance. The first was the launch of English football’s first online bond in 2017, raising £600,000 in six weeks to build a new north stand. Construction completes this summer, increasing the stadium capacity by 1,400 seats.
Investors buying into the club will receive a 25% dividend upon promotion to EFL League One, and an additional 75% dividend if they reach the EFL Championship. They will also get voting rights on a one share one vote basis, and, said the club, “will be consulted on key issues relating to the club’s identity, such as kit design, club colours and the location of the stadium.
Club chairman Phil Wallace said: “It’s hardly ever possible to buy shares in a football club, but we are offering people the chance to do that. 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 helped Norwich City raise £5 million to build a new state-of-the-art academy, and Italian clubs Pescara Calcio and Frosinone Calcio who raised funds for infrastructure and Academy projects.
Investors looking to own a piece of Stevenage should go to www.tifosy.com/stevenagefc
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