Share Issue

[super_al]

The herald is mentioning a possible share issue in the near future. I can't see us raising much more money from what would be our third share issue in roughly 20 years. Yule also says we are planning on tackling the debt this year.

[a don in oz]

A share issue? Can't see that raising too much. If that's the extent if dealing with the debt - fleece the fans some more - then I'll be mightily disappointed.

[ChutneyLove]

I'd be happy to chuck in some money - if being a shareholder carries any clout. I thought they were at the back of the queue for tickets recently?

[RUL]

I was about to say same Chutney, taking the piss

[Hewitt1983]

I think we are due to pay a fairly significant payment to the Bank in the next couple of years.

 

Probably something to do with that.

[MightyDons]

I would be interested in getting some shares, but this isn't going to clear the debt. Didn't we make £3m from the previous share issue?

[Dynamo]

The herald is mentioning a possible share issue in the near future. I can't see us raising much more money from what would be our third share issue in roughly 20 years. Yule also says we are planning on tackling the debt this year.

 

 

A fairly large percentage of the support won't have been old enough, I mean when was the last one? Mid 90s?

 

There's a lot of money in Aberdeen.

[NorthernLights24]

 

 

I mean when was the last one? Mid 90s?

 

 

And didn't we spend it on Paul Bernard or am I just making that up (which is likely)?

[spamspamspam]

http://www.heraldscotland.com/sport/football/aberdeen-plan-share-issue-to-capitalise-on-feelgood-factor.24034208

 

 

Aberdeen plan share issue to capitalise on feelgood factor

Frank Gilfeather

Wednesday 23 April 2014

Aberdeen supporters may be asked to participate in a third share issue to ease the pressure on Stewart Milne, their multi-millionaire chairman.

George Yule, the vice-chairman, yesterday hinted at the move which comes in the wake of the debt-ridden club's League Cup victory with a probable place in next year's Europa League on the horizon.

Speaking at the launch of the ­Aberdeen FC Community Trust, a club-backed charity, Yule called on UEFA, European football's governing body, to help clubs who are hampered financially by competing in the qualifying stages of the competition.

Aberdeen have a debt of around £15m and annual losses in excess of £1.4m which Yule insisted would be ­tackled soon.

"We are looking to take the onus away from one of two individuals and spread it around," he said. "If you have got a successful team it's much easier to go out and encourage funding. When you are languishing at the bottom it can seem like you are firing money down a black hole. No business can afford to lose money year on year and it would be naive to think the board is sitting back watching that annual loss. There will be definite moves made this year. Down the line a share issue is one of the options available to us, but there's a lot of work to be done before that.

"If we have a good product and are providing a good service, a good news story, then you have that opportunity to capitalise on that by having some sort of shares or rights issue. That's not to say it's definitely going to happen, but it would be madness to think that if things are going well for you, why you wouldn't want to do that to get more cash in."

Yule argued that Aberdeen had been too reliant on the club chairman for finance and that change on that score was required.

"I know how much passion Stewart has for the club and how much he has done for Aberdeen with little recognition. He is a grounded and very successful guy. He has put in a lot of money and people would want him to put in more [but] I don't think it's particularly healthy for any club to be overly reliant on one benefactor.

"Every business should pay its own way, but to do that you need to have a product for customers to buy into. It's the same with football clubs, but our customers are the fans."

Yule also outlined the financial difficulties of involvement in the early phases of European competition. Aberdeen lost money when they were eliminated from the Europa League in the qualifying stage against Sigma Olomouc, of the Czech Republic, five years ago while Motherwell and St Johnstone suffered financial losses as a consequence of recent participation. It is time, Yule said, for UEFA to help.

"You shouldn't be punished financially for playing in European competition. There is enough money in UEFA to be distributed a bit more proportionally. In any league, you need the lesser teams as well as your bigger teams to make up the competition. It's the same in cups: you need the so-called minnows for the competition to happen. No club should be losing money competing in Europe if they've grafted a whole season to get there."

[dave_min]

I'll take some.

 

Don't really give a fuck if they're worth anything or not, the framed bit of paper on my wall is enough for me.

[gla5gowdon]

Where is all the cash going to come from for all of this?

[Pudgie]

 

Aberdeen lost money when they were eliminated from the Europa League in the qualifying stage against Sigma Olomouc, of the Czech Republic, five years ago while Motherwell and St Johnstone suffered financial losses as a consequence of recent participation.

I didn't realise this actually happened. I'd heard murmurings but that fact is disgusting! Teams get £1M for winning a Champions League group game but teams are losing money from competing in the Europa League early stages? Shit's fucked up! I wonder if the Champions League qualifiers like Cliftonville get done every year financially?

[The Boofon]

How much are they and when do they go on sale?

 

I hope they don't offer them to folk without a buying history.

[Dynamo]

I didn't realise this actually happened. I'd heard murmurings but that fact is disgusting! Teams get £1M for winning a Champions League group game but teams are losing money from competing in the Europa League early stages? Shit's fucked up! I wonder if the Champions League qualifiers like Cliftonville get done every year financially?

 

Was there not a crowd of about 14,000 at the Sigma game? Say average ticket price £15... £210,000. How the fuck did they lose money?

[The Boofon]

 

Was there not a crowd of about 14,000 at the Sigma game? Say average ticket price £15... £210,000. How the fuck did they lose money?

When they realised the size of contract they'd given McGhee.

[RUL]

 

Was there not a crowd of about 14,000 at the Sigma game? Say average ticket price £15... £210,000. How the fuck did they lose money?

 

Not to mention corporate sales etc. I suppose they would have to chartered a plane too?

[The Hulk]

Where is all the cash going to come from for all of this?

 

I can imagine that there may be a fair few businessmen in the city who may not wish to purchase shares to join the board and/or to work with Stewart Milne, but who may be willing to quietly accumulate a small shareholding, get a foot on the ladder so to speak. Given the confidence in the city right now and the money flying about I wouldn't underestimate the consequences of a handful of like-minded businessmen acquiring a combined 10-20% stake with a view to boosting that in coming years. It could be seen as a form of succession planning. Who knows, there might be a wealthy submarine commander out there...

 

It's about time Yule delivered something after much early promise.

[V for Vendetta]

You'd have to expect Lloyds take a hit on the bank debt now and reach a compromise to get it off their books - much as Dundee Utd and Killie have managed,

 

As for a share issue, as long as they are not only relying on the fan on the street I have no problems with this. But guys like Milne, Yule and the other new board members who joined last year will all need to take up decent chunks and we'll need to find other "wealthy" fans to part with a good chunk of cash in exchange for shares a and a say what goes on at the club.

[Stoney]

Fuck that - I'll have cleared the debt on my own at this rate.

Why should we pay for Milnes fuck ups........

 

Unless hes offering fan ownership he can run to fuck.

[TwoStars]

ill buy shares!

Same. Anything I can do to help.

 

Onwards and upwards.

[Stoney]

Same. Anything I can do to help.

 

Onwards and upwards.

 

I'd say you are far better off plowing the money into RTYD's youth development fund.

[TwoStars]

 

I'd say you are far better off plowing the money into RTYD's youth development fund.

I'd like the opportunity to do both.

[Tord31]

Happy to plough in. Surely be plenty folk

[dervish]

I'd buy in but we'd be due a realistic vision for the future. Especially concerning debt management and the stadium.

[ChutneyLove]

I'm also happy to gift (because that'll be what it is) The Dons some money - but I do want something back for it. Be it ticket prioritisation, my name on a seat in Section Y of the Soother, a fancy framed certificate or a special Dons Shareholder dildo glued to the bonnet of my car - something more than a receipt.

[barassie_afc]

Hmm, club would need to address ongoing costs before I part with any money, for me still too many unnecessary costs and not enough being done to get them under control

[1983]

You'd have to expect Lloyds take a hit on the bank debt now and reach a compromise to get it off their books - much as Dundee Utd and Killie have managed,

 

As for a share issue, as long as they are not only relying on the fan on the street I have no problems with this. But guys like Milne, Yule and the other new board members who joined last year will all need to take up decent chunks and we'll need to find other "wealthy" fans to part with a good chunk of cash in exchange for shares a and a say what goes on at the club.

This has been spoken about a few times on here. I know you're not stating a small percentage of the debt deal will be due V, but others have suggested such fantasy. It doesn't make sense for a viable trading company to be let off by a lender. The bank is making a very nice sum from the interest every year and has a guarantor for the original capitol, which it can call in at anytime (like rangers). Why would they let us off with the debt in return for a small percentage? It doesn't make sense and is very naive. Kilmarnock and Dundee Utd both paid the majority of bank debt via third party private investors, nothing to do with the banks accepting a massive loss. They did make a compromise, but probably worth a years interest, nothing more.

[Mikeyboy1903]

I'm just happy that our board never spunked £20Million in 2 years + £7 Million per season in sales.

[Guest]

This has been spoken about a few times on here. I know you're not stating a small percentage of the debt deal will be due V, but others have suggested such fantasy. It doesn't make sense for a viable trading company to be let off by a lender. The bank is making a very nice sum from the interest every year and has a guarantor for the original capitol, which it can call in at anytime (like rangers). Why would they let us off with the debt in return for a small percentage? It doesn't make sense and is very naive. Kilmarnock and Dundee Utd both paid the majority of bank debt via third party private investors, nothing to do with the banks accepting a massive loss. They did make a compromise, but probably worth a years interest, nothing more

 

 

I hear what you're saying, but how much interest have we paid on that debt over the years? The bank will have more than had a return on their lending, even if they write some of that debt off. The alternative is you go into administration and the banks see 1p in the £. It seems inconceivable that Hearts could wipe out £30m of debt for as little as £500k or whatever it is that Foundation of Hearts are offering as part of the CVA. One season in 1st Div (seems conceivable if they finish 2nd to sevco and play someone like St Mirren in a 2-legged play off). And they have the parachute payments being offered to Championship sides now - I bet a drop down a league in order to come out debt free, is not actually a bad thing! We should enter admin after we finish 2nd, come out of it before season starts and have a share issue to raise £10m.... fund a new squad, make up the 15 point deduction in no time!

 

Anyway, back in the real world.... I would be hard pushed to buy shares again, unless the funds were put to good use or ended up in some form of fan ownership model. Shares are pretty useless unless you plan on selling them for a profit in the future (which most Aberdeen fans wouldn't be contemplating).

[super_al]

 

Was there not a crowd of about 14,000 at the Sigma game? Say average ticket price £15... £210,000. How the fuck did they lose money?

 

Was there not a crowd of about 14,000 at the Sigma game? Say average ticket price £15... £210,000. How the fuck did they lose money?

It's to do with the cost of flights and accomodation for the away legs.