Share Scheme – Boards’ Response
March 1, 2007
In our MK Don’s programme I reported that the Board had rejected the Supporters Club proposals to reduce the share price to match that of other directors.
Below I have reproduced the full reply from the board. For clarity I would confirm that the SCE was generally happy with this response except on the question of price of the shares.
There is no doubt that we have to develop a successor scheme and in particular ensure that the Supporters Club has top facilities in the redeveloped ground for our members. We would still, however, like to reduce the price of shares and the Board has agreed to continue discussions.
“The Club have confirmed that the Bristol Rovers Supporters Club Share Scheme will continue in its present form until it ends in 2008.
The scheme has been very successful in raising much needed revenue for the Club and has played a major role in the resurgence of Bristol Rovers on and off the pitch, as well as acquiring shares for the Supporters Club.
The original objectives were to give the opportunity for the Supporters Club to have a voice should the board ever consider selling the Memorial Stadium and to raise £3.5m to help clear the Club debts. The Supporters Club also had an additional objective of obtaining 28% of the share capital of the Club.
Whilst it has been recognised for some time that the scheme would not achieve these objectives, it is still a valuable source of revenue for the Club and the Supporters Club now have two board members because of the income generated from the scheme and additional shares in BRFC.
It is recognised that members of the scheme, past and present, signed up to the original agreement and after taking legal advice it was felt that any change or modification to the scheme could possibly open all sorts of legal challenges from members past and present.
The granting of planning permission for a new redeveloped Memorial Stadium and the way it is being funded , has also diminished the fear of the ground being sold, as once the student accommodation has been completed the value of the site for other uses will have diminished.
Members who remain with the Share Scheme until 2008 will continue to receive the benefits promised and will also have their names engraved on a special “Wall Of Fame” within the new stadium which is expected to be operational by 2010.
The Supporters Club will continue to purchase shares from the revenue generated and will also be able to purchase an additional share under the latest rights issue for 50p, for every £5 share purchased.
The Club is in discussion with BRSC for a possible new fund raising scheme to assist in the development of the stadium to create specific accommodation and seating for the Supporters Club.”