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Do the Math


Big Al 55

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So you have set up your CIC so that all your clubs fans can become members of this Holding Company by contributing small amounts on a monthly basis but do the numbers really add up?

There seems to be a view that a Club the size of Rangers could not be Fanowned so lets look at the numbers in order to show how it could be bought and what could then happen.

First some context from other Clubs that either have, have tried or are going through the Fanownership process.

Clyde - 461 members £30 per person per year. The Original CIC Fan Owned Club

St Mirren – 1007 pledged members. Average pledge £13.50 per person per month. £1.25m bid from fans was not accepted in the end by current owners

Dunfermline Numbers the centenary Club in particular is interesting over 1000 members all paying £20 per month

Motherwell – 1200 members, Cash lump sum raised of £400,000

Hearts – 7600 members giving an avg between £15 and £20 per month

So Rangers Fans that is the bench mark for you from Clubs across the divisions.

Let us assume, and i think that it is a reasonable assumption, that it is possible to galvanise Fans of a Club around a new single issue organisation looking to buy the Clubs Shares and that there is a direct link between the Size of the Club and the number of fans that could be engaged as members and contributors to the CIC.

So on the numbers above is it reasonable to expect 40,000 RFC fans to be able to contribute?

X5 the number engaged in the Hearts process, how much bigger is RFC than HMFC?

Let us assume that it is, if this number is high then it will not be that far out, and you can only spend what you have coming in so it is just a case of Pro Rata down the way and it just takes a bit longer to buy the shares, and if the number is low great news the Club will be Fanowned before you know it.

Now not going to get too technical here about the Takeover Code for AIM listed companies, and about how share prices could change (both up and down) as you buy shares but there are some issues that will need dealt with, but lets park these for the moment and focus just on buying the shares.

The current share price can be found at the below link along with a note of all the trades

Follow the Rangers Shares Price

So as it stands today if you were able to buy all the Clubs shares then in theory it would cost £18m.

However as a PLC it is not all about owning all of it.

51% a simple majority would give Fans all the control they would likely ever need ….value £9m

However PLC’s are all about fair representation of Shareholders on the Board of the Company so as a start you just need to get a CIC nominated director on the Board

The below was the case before Mr Hughes sold his shares so we don’t know yet if they have landed with any of the others.it should update at the link below in time.

Where are Rangers Shares?

Shareholder

No of Ordinary Shares held

% of issued share capital

Laxey Partners Ltd

7,578,672

11.64%

Artemis Investment Management LLP

5,479,000

8.42%

Hargreave Hale Limited

4,601,688

7.07%

Blue Pitch Holding*

4,000,000

6.14%

Miton Capital Partners

3,143,857

4.83%

Mike Ashley

3,000,000

4.61%

Alexander Easdale*

2,942,957

4.52%

Margarita Funds Holding Trust*

2,600,000

3.99%

Richard Hughes

2,200,000

3.38%

So as you can see for the Fan Controlled CIC to be the single biggest shareholder would only take a 11.65% (say 12% for ease sake) = £2.16m

£2.16m would make the fans the largest single shareholder and although it is not a guarantee of anything but just because of the way PLC’s work it is very hard for a board to ignore that, when the shares are actually owned by the Fans CIC (this is not the same as a group having a load of proxies for an AGM)

So lets follow this logic through.

Assume 40,000 fans giving on Average £18.72 per month to the CIC and then this money going straight out to buy shares.

£748,800 per month.

So you would have raised in less than 3 months………….3 MONTHS….enough to take control of your club back

Quick question……..what are you waiting for?

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So you have set up your CIC so that all your clubs fans can become members of this Holding Company by contributing small amounts on a monthly basis but do the numbers really add up?

There seems to be a view that a Club the size of Rangers could not be Fanowned so lets look at the numbers in order to show how it could be bought and what could then happen.

First some context from other Clubs that either have, have tried or are going through the Fanownership process.

Clyde - 461 members £30 per person per year. The Original CIC Fan Owned Club

St Mirren – 1007 pledged members. Average pledge £13.50 per person per month. £1.25m bid from fans was not accepted in the end by current owners

Dunfermline Numbers the centenary Club in particular is interesting over 1000 members all paying £20 per month

Motherwell – 1200 members, Cash lump sum raised of £400,000

Hearts – 7600 members giving an avg between £15 and £20 per month

So Rangers Fans that is the bench mark for you from Clubs across the divisions.

Let us assume, and i think that it is a reasonable assumption, that it is possible to galvanise Fans of a Club around a new single issue organisation looking to buy the Clubs Shares and that there is a direct link between the Size of the Club and the number of fans that could be engaged as members and contributors to the CIC.

So on the numbers above is it reasonable to expect 40,000 RFC fans to be able to contribute?

X5 the number engaged in the Hearts process, how much bigger is RFC than HMFC?

Let us assume that it is, if this number is high then it will not be that far out, and you can only spend what you have coming in so it is just a case of Pro Rata down the way and it just takes a bit longer to buy the shares, and if the number is low great news the Club will be Fanowned before you know it.

Now not going to get too technical here about the Takeover Code for AIM listed companies, and about how share prices could change (both up and down) as you buy shares but there are some issues that will need dealt with, but lets park these for the moment and focus just on buying the shares.

The current share price can be found at the below link along with a note of all the trades

Follow the Rangers Shares Price

So as it stands today if you were able to buy all the Clubs shares then in theory it would cost £18m.

However as a PLC it is not all about owning all of it.

51% a simple majority would give Fans all the control they would likely ever need ….value £9m

However PLC's are all about fair representation of Shareholders on the Board of the Company so as a start you just need to get a CIC nominated director on the Board

The below was the case before Mr Hughes sold his shares so we don't know yet if they have landed with any of the others.it should update at the link below in time.

Where are Rangers Shares?

Shareholder

No of Ordinary Shares held

% of issued share capital

Laxey Partners Ltd

7,578,672

11.64%

Artemis Investment Management LLP

5,479,000

8.42%

Hargreave Hale Limited

4,601,688

7.07%

Blue Pitch Holding*

4,000,000

6.14%

Miton Capital Partners

3,143,857

4.83%

Mike Ashley

3,000,000

4.61%

Alexander Easdale*

2,942,957

4.52%

Margarita Funds Holding Trust*

2,600,000

3.99%

Richard Hughes

2,200,000

3.38%

So as you can see for the Fan Controlled CIC to be the single biggest shareholder would only take a 11.65% (say 12% for ease sake) = £2.16m

£2.16m would make the fans the largest single shareholder and although it is not a guarantee of anything but just because of the way PLC's work it is very hard for a board to ignore that, when the shares are actually owned by the Fans CIC (this is not the same as a group having a load of proxies for an AGM)

So lets follow this logic through.

Assume 40,000 fans giving on Average £18.72 per month to the CIC and then this money going straight out to buy shares.

£748,800 per month.

So you would have raised in less than 3 months………….3 MONTHS….enough to take control of your club back

Quick question……..what are you waiting for?

1 team fanowned that are not in admin or have just came out of admin, Hearts could still die, St Mirren with big REA in charge failed so not a good choice. Do the research.

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1 team fanowned that are not in admin or have just came out of admin, Hearts could still die, St Mirren with big REA in charge failed so not a good choice. Do the research.

Aye, noticed ur replies in the other thread.....no discussion, just negative comments.

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1 team fanowned that are not in admin or have just came out of admin, Hearts could still die, St Mirren with big REA in charge failed so not a good choice. Do the research.

Perhaps because the fans aren't motivated to get off their arses until their team is in mortal danger...sound familiar?

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The thought of fan ownership :anguish:

I know but this is about how to do it, not about reality of living with it ;)

I do think it's pretty straightforward though, if implemented democratically.

I've said before if you can get an ongoing monthly subscription to fund the club after the initial purchase it may just work

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Perhaps because the fans aren't motivated to get off their arses until their team is in mortal danger...sound familiar?

Yeah, because we as fans should spend all of our money on saving Rangers, who cares about family and rent /loans. £18.72 doesn't sound much but that is gas and electricity to some people in the house a week, and yet you expect us to throw that cash into Rangers right now when we as a club need to cut costs 1st. Also who gives you the right to call our fans lazy when you haven't put enough in to save the club. You have the funds to run Rangers? No you don't, so let the RST do their BuyRangers and fail like the Blue Knights did and see what GW's next move is with cutting cost

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Yeah, because we as fans should spend all of our money on saving Rangers, who cares about family and rent /loans. £18.72 doesn't sound much but that is gas and electricity to some people in the house a week, and yet you expect us to throw that cash into Rangers right now when we as a club need to cut costs 1st. Also who gives you the right to call our fans lazy when you haven't put enough in to save the club. You have the funds to run Rangers? No you don't, so let the RST do their BuyRangers and fail like the Blue Knights did and see what GW's next move is with cutting cost

Simple. If you can't afford it don't pay it, hardly compulsory.

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