Share Scheme and Share update
January 1, 2000
Share Scheme letter to members:
A newsletter has been sent to share scheme members confirming that the second Supporters Club position on the board of directors had been upgraded from Associate to Full Director and that the Supporters Club currently has 249,530 shares with a share holding of 7.9%. A total of £604,490 has been raised through the share scheme. At the Bury game a cheque for £50,000 was presented to new chairman Ron Craig.
If you are a share scheme member and didn’t receive this letter please get in touch to make sure we have your correct contact details.
Negotiations with the Board:
We have been negotiating with the Board in an attempt to reduce the price the Supporters Club pays for shares. David Brain, Clive Farquhar and Edd Gould were mandated to undertake the negotiations. An original proposal was submitted to the February Board meeting and a statement received from the Chairman (published in the Stockport programme). This confirmed that there would be no reduction in the price of shares. The main reasons given were, the fear of a legal challenge form members past and present (if the SS Agreement was varied) and an overriding opinion that a successor scheme should be introduced now that the stadium was to be redeveloped. An alternative proposal was presented at the March Board Meeting but again the new proposal was not carried and it was agreed this would be the end to negotiations.
Whilst this is disappointing and the Supporters Club do not consider that there is a threat of a legal challenge (based on legal advice from the SC solicitors) we understand why, following the boardroom upheaval over the last year, that The Board are reluctant to alter the share scheme agreement. The Supporters Club has therefore, reluctantly agreed to accept the Board’s decision. We do however believe it is important to go on supporting the football club financially particularly whilst the club needs to finance the ground redevelopment. It should be remembered that most of the finance will only come when the student rooms are completed and sold. We are therefore continuing with the share scheme up until its conclusion on the 14th November 2008.
In the meantime, I can confirm that the SC Executive are still committed to maximising our shareholding in Bristol Rovers (1883) Limited and I urge you to keep faith with the current share scheme.
Successor to Share Scheme:
We are currently exploring possibilities concerning a new scheme. Various ideas are being discussed. The new scheme could be linked to acquiring shares as well as a fund raising scheme to benefit Supporter’s Club members in the redeveloped stadium. As usual, your views are vital to such a development and I welcome all suggestions. The new scheme is likely to center on facilities in the redeveloped ground and build on the ethos of us being ‘one big extended family’ and creating mutual benefit for our members whilst helping the football club to develop. This would be an appropriate time to negotiate a lower share price as it would not involve the legalities of altering the existing share scheme agreement. We are hoping to start the successor scheme by the start of next season and prior to taking up our allotted 50p rights issue shares. The successor scheme would then run along side the current scheme until its expiry in December 2008 when we will hopefully see tangible progress in the redevelopment of the Memorial Stadium.