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Today...

PatMan

By PatMan
in Ebbsfleet United Forum

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PatMan Newbie

PatMan

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...Has been a day and a half for Fleet fans.

 

The new that broke about 9.30 this morning would have come as a major shock to the fans of Ebbsfleet United. There was never any suggestion or rumour about the MyFC connection, and for all of a sudden to be told that this 'community' of 20,000 punters are proposing to take control of 51% of their side would have come as a mahor shock.

 

"Why us?" seems to be one of the most polite comments from the forum. Indeed, why Fleet? From reading various news reports, and the MyFC web-site it appears that it was the club itself that approached MyFC to invite their involvement. So, are the club in financial difficulties, or do they see this as an opportunity to have a large investment of cash without the hassle of an interfering board member? Sure, the MyFC web-site promises the investrs they can pick the team, how do they expect this to happen?

The sceneario - Fleet play on a Saturday, and lose 2-0 to a side struggling in the league. A couple of players are substituted due to slight injuries, plus a 3rd sub is brought on to switch formation late on. The team have Sunday off, and report for light training Monday morning, because they have a game Tuesday night - how will 20,000 people have a chance to pick the side? Who is fit? Will a formation change be required to cover for these injuries? What about suspensions? See - wont work. And if they are not picking the team ALL the time, how can they pick the team ANY time?

 

Also, 20,000 now own 51% worth about £500k (after expenses). If next year this drops to 10,000 does this mean they own 25%, or will they be expected to stump up £70? And the year after that?

 

These are only 2 of the many unanswerable questions. There is a six week period before this happens, everyone needs to think long and hard about this before shaking hands on a deal. And the club should at least have the honesty and openess to keep the real fans informed on something this important - the way they handled the name change wasn't good - this is looking even worse.

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Ted Crilley Newbie

Ted Crilley

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Posted
Originally Posted By: PatMan


Also, 20,000 now own 51% worth about £500k (after expenses). If next year this drops to 10,000 does this mean they own 25%, or will they be expected to stump up £70? And the year after that?


£35 from each member gets invested into the club each year.

It would simply mean that ONLY £350,000 would be given to your club by MyFC members for that season.

Quite generous really.
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PatMan Newbie

PatMan

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Posted
Originally Posted By: Ted Crilley
Originally Posted By: PatMan


Also, 20,000 now own 51% worth about £500k (after expenses). If next year this drops to 10,000 does this mean they own 25%, or will they be expected to stump up £70? And the year after that?


£35 from each member gets invested into the club each year.

It would simply mean that ONLY £350,000 would be given to your club by MyFC members for that season.

Quite generous really.


£350,000 LESS expenses for a 51% share? I think you missed the point - the club gets devalued each time membership decreases. How is that generous?
Yes, I am aware the opposite is possibly true
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PatMan Newbie

PatMan

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Originally Posted By: Hirsty
"your club"

Surely you mean "our" club.....or haven't you got used to it yet ?

I will prostrate myself before thee for your kind generosity of £35 !...ever so 'umble squire !!


Actually Hirsty - I am sure most on here would prefer they never called it "ours"!!!
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rsheard Newbie

rsheard

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Posted
Originally Posted By: PatMan
Originally Posted By: Ted Crilley
Originally Posted By: PatMan


Also, 20,000 now own 51% worth about £500k (after expenses). If next year this drops to 10,000 does this mean they own 25%, or will they be expected to stump up £70? And the year after that?


£35 from each member gets invested into the club each year.

It would simply mean that ONLY £350,000 would be given to your club by MyFC members for that season.

Quite generous really.


£350,000 LESS expenses for a 51% share? I think you missed the point - the club gets devalued each time membership decreases. How is that generous?
Yes, I am aware the opposite is possibly true


I don't follow how the club gets devalued if membership drops. Obviously the additional annual revenue stream drops if membership does, but the assets of the club and all the traditional revenue streams are unaffected by membership levels. The additional cash infusion from the membership dues is over and above normal operating revenue.
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Ted Crilley Newbie

Ted Crilley

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Posted
Originally Posted By: PatMan
Originally Posted By: Ted Crilley
Originally Posted By: PatMan


Also, 20,000 now own 51% worth about £500k (after expenses). If next year this drops to 10,000 does this mean they own 25%, or will they be expected to stump up £70? And the year after that?


£35 from each member gets invested into the club each year.

It would simply mean that ONLY £350,000 would be given to your club by MyFC members for that season.

Quite generous really.


£350,000 LESS expenses for a 51% share? I think you missed the point - the club gets devalued each time membership decreases. How is that generous?
Yes, I am aware the opposite is possibly true


Sorry, but I think you're getting a tad muddled.

It works on the same principle as a single person buying a 51% share in the club AND giving a cash injection every year.

The amount of money given depends on how many members there are.
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PatMan Newbie

PatMan

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Originally Posted By: rsheard


I don't follow how the club gets devalued if membership drops. Obviously the additional annual revenue stream drops if membership does, but the assets of the club and all the traditional revenue streams are unaffected by membership levels. The additional cash infusion from the membership dues is over and above normal operating revenue.


The way I see it, MyFC are paying £700,000 for 51%, kinda valuing the club at £1.4m - correct?
What happens if the following year they only have £250,000, will they still expect to own 51%? That then makes the club only worth £500,000... Yes? No? Maybe? No idea? Things like this NEED to be fully explained.
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rsheard Newbie

rsheard

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Posted
Originally Posted By: PatMan


The way I see it, MyFC are paying £700,000 for 51%, kinda valuing the club at £1.4m - correct?
What happens if the following year they only have £250,000, will they still expect to own 51%? That then makes the club only worth £500,000... Yes? No? Maybe? No idea? Things like this NEED to be fully explained.


The actual purchase price hasn't been disclosed. The 700,000 figure is simply the rough estimate of the membership fees raised so far. The purchase plan calls for a smaller up-front payment to allow more cash to go into the transfer pool this winter. There will be a small debt due for renewal or repayment in three years. And the members have the option to purchase the remainder of the club at a fixed price at some point in the future.

But it's not a purchase price that has to be paid again and again out of each year's new membership fees. Whatever money comes in in year two is to go straight into the club's coffers.

The other part of this equation that has not been announced is what EA Sports level of sponsorship commitment is.
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the7wolf Newbie

the7wolf

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Depends how far this "novelty" spreads. I got 3 other friends to sign up just this morning. With the publicity it's had today the club will do alright out of it. You have to remember that the board want the club to exist long term and a lot of the money will probably be invested to ensure a drop in future revenue is allowed for. Unless we have a bunch of idiots in charge, they should be able to come up with a plan whereby some solid investment brings in some decent interest every year. Nobody is assuming we're gonna go out and buy Ronaldinho next year and then go bankrupt paying for his dental visits!

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PatMan Newbie

PatMan

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Originally Posted By: rsheard


But it's not a purchase price that has to be paid again and again out of each year's new membership fees. Whatever money comes in in year two is to go straight into the club's coffers.

The other part of this equation that has not been announced is what EA Sports level of sponsorship commitment is.


I knew I missed something - cheers!

Not sure on the idea of the members having an option to purchase the remaining 49% in the future at a FIXED price... If the plan works and Fleet are a League or Championship (!!) side in a few years, surely the remaining 49% would be worth considerably more?


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rsheard Newbie

rsheard

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Posted
Originally Posted By: PatMan
I knew I missed something - cheers!

Not sure on the idea of the members having an option to purchase the remaining 49% in the future at a FIXED price... If the plan works and Fleet are a League or Championship (!!) side in a few years, surely the remaining 49% would be worth considerably more?


I have a suspicion that such a possibility would have been worked into the equation to derive that agree-upon fixed price.

The original vision of MyFC was to have 50,000 members. When the site first opened, 53,000 people registered interest. That's when the site went live and began collecting actual membership fees. It was apparent early that we wouldn't retain all 53,000 when actual money had to be forked over, but the fact that we signed up 20,000 in three or four months, without any idea what club we could buy, is heartening to me. Now that a real club is involved, I expect our membership numbers to climb closer to the original vision. In other words, the 20,000 annual membership subscriptions is, imho, on the low side.
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Kenny Newbie

Kenny

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Yeah, definitely, with all the coverage today I'm pretty sure there'll have been a decent spike in sign ups today. I know a couple of guys in my office joined, as well as a couple of other friends. I would imagine that'll be the pattern in a few places.

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EUFC FAN Newbie

EUFC FAN

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Originally Posted By: PatMan
Originally Posted By: rsheard


But it's not a purchase price that has to be paid again and again out of each year's new membership fees. Whatever money comes in in year two is to go straight into the club's coffers.

The other part of this equation that has not been announced is what EA Sports level of sponsorship commitment is.


I knew I missed something - cheers!

Not sure on the idea of the members having an option to purchase the remaining 49% in the future at a FIXED price... If the plan works and Fleet are a League or Championship (!!) side in a few years, surely the remaining 49% would be worth considerably more?




It does not matter if the club is worth 1 pound or 1 billon pound. The MyFC members do not get any of it!
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