Its here the investment

[poppyfield]

Darlington FC investment announcement

By John Tempest, director of Darlington Football Club

I would like to take this opportunity to update all Darlington FC 1883 Ltd shareholders and Darlington FC Supporters Group members of the progress made in relation to the potential investors with whom I have met over the last two weeks.

It is inevitable that it will take time to fully understand the implications of bringing in private investment, and in particular to ensure that the fan-owned model is able to sit alongside private investment. We are now in a position to announce that Raj Singh is one of the individuals who is looking to help the club move forward with the potential for longer term investment.

In the meantime however, it is crucial that we try and operate the business as usual and allow Martin Gray the best opportunity to shape his squad for the coming season. With this in mind, Raj Singh has offered to immediately invest a £40,000 contribution towards the 2017/18 playing budget. Raj commented; “I saw the shortfall that Martin was asked to take regarding the playing budget for next season and I was keen to help maintain the momentum he has built up over the last few seasons.”

In order to facilitate this, Darlington FC will shortly be writing to all its shareholders to seek approval to allot shares in DFC to Raj Singh in return for his investment. In order to do this, DFC’s shareholders will have to formally approve a resolution with at least 75% of those who vote being in favour of the proposal. Acquiring a shareholding of £40,000 is in accordance with the current Articles of Association, which limits the shareholding of an individual to 15% of the total issued share capital.

As you know, DFCSG owns more than 80% of the voting rights in DFC, and so it will be asking its members how they wish to vote on the proposal. If you wish to have your say, then we encourage you to join the DFCSG if you are not already a member.

For many fans the proposed involvement of Raj Singh will come as a surprise, and Raj is fully aware that he will need to answer fans’ concerns and questions relating to events in 2012. With this in mind, Raj will shortly be undertaking an online Netcafe Q&A with Ray Simpson. We will provide details just as soon as they are finalised.

Supporting the “Boost The Budget” fundraiser in the next two weeks will give a clear indication of the calibre of squad that can be built. Don’t forget that this fundraiser is a weekly or monthly direct debit so it can be spread across the entire season. With the play-off finalists now known in the Vanarama National League North, and in turn it being clear which clubs will remain in our league, the competition is only going to get tougher, and so it is vital that we provide funds to ensure our team squad is as strong and competitive as possible.

If DFC’s shareholders decide to accept Raj Singh’s offer to contribute to next season’s playing budget by acquiring £40,000 of equity in the club, he would then develop further proposals on how he would like to increase his (and potentially that of others) involvement, whilst taking into account the fact that we are a community owned football club. The Board and DFCSG would liaise with Raj to understand his plans and the implications for the Club going forward. The fact that Martin would be able to progress with his plans for next season, means that there would be time for plans for further involvement to progress at an appropriate pace. These budget plans would be made on the expectation that the fans’ contribution would be also be £40,000 and the current total of pledges in the ‘Boost The Budget’ fundraiser currently stands at £23,500 – so we still have a little bit of work to do.

There remains the requirement to find the moneys to install at least another 206 covered seats, and to introduce an open terrace at the western end of the ground. These plans are being fully costed and will be shared with fans shortly.

Appropriate shareholder and member meetings of the football club and Supporters Group are now being called to seek views on how fans want to progress, and the approvals to proceed as outlined. Both the Board, and the Supporters Group look forward to engaging with fans in what is clearly a crossroads for the future of the club.

The club will not enter into any discussions on this announcement on any of its media outlets until the netcafe.

John Tempest

[LoidLucan]

Under the circumstances outlined there, for me the answer would have to be yes.

[poppyfield]

As long as the DFCSG remain in control

[banktopp]

NEVER,NEVER,NEVER.
Beggars belief that this traitor thinks he can buy our club for £40000.

[lo36789]

NEVER,NEVER,NEVER.
Beggars belief that this traitor thinks he can buy our club for £40000.

That isn't what it says.

Basically Raj spends £40,000 (non refundable) and the DFCSG maintain 75% share which means they still control the Articles of Association.

It will be interesting if the blokes who were so vocal agains the board will be as vocal to Raj Singh re 2012.

[Spyman]

Why is he wanting to specifically put his money towards a playing budget for a club that has currently no prospect of achieving promotion?

£40k buys him 15%.

We need to raise a further £160k to get the ground fit for promotion in the next 10.5 months.

I Singh gambling on us failing to achieve this so that come January he can step in and say " you're knocking on the door of promotion bit you can't go up without my help to improve the ground"?

Another £90k (on those figures) would be required from him to go above 50% ownership.

Sent from my SM-G930F using Tapatalk

[shawry]

At the end of the day 40k won't get him control so I don't have an issue taking his money.

Sent from my SM-G955F using Tapatalk

[lo36789]

I don't think £40,000 gets him 15% what it is saying is £40,000 won't breach the 15% as detailed in the Articles currently.

[theoriginalfatcat]

Acquiring a shareholding of £40,000 is in accordance with the current Articles of Association, which limits the shareholding of an individual to 15% of the total issued share capital.

I see, there's a limit.

[LoidLucan]

It seems to be inbuilt that this private investment runs alongside fan-owned, not a controlling interest or buy-out. It is astonishing that Raj is proposing this after past events and it will be fascinating to hear what he has to say and explain why and what he hopes to get out of this.

[shawry]

I don't think £40,000 gets him 15% what it is saying is £40,000 won't breach the 15% as detailed in the Articles currently.

Why do we actually have to vote then? If it doesn't breach anything surely he could just put in 40k

Sent from my SM-G955F using Tapatalk

[poppyfield]

Must admit I was expecting more, I suppose this is the toe in the door so to speak

[H1987]

He's not trying to buy the club for 40k to be fair. We can take that and he still doesn't hold any say.

I think he's got a lot of explaining to do, but in the mean time the 40k is basically a good will gesture on his behalf, given it gives him basically no say, and is badly needed cash for the club. I'll assume it was his 10k in the pitch fund as well. I would hazard a guess that he'll want to come up with a very, very good explanation for his conduct at the end of his time here before even setting foot in BM is a good idea... He may be many things, but he isn't a stupid man.

Say what you like, it's never dull being a Darlo fan...

We need more details.

[MKDarlo]

How long does it take for someone else to buy 15% and someone else to buy 15% and someone else and suddenly while no one person owns more than 15% one shareholding block does and can then drive the direction of the club.

They issue more share capital at decent prices or preferential shares in exchange for more investment and water down the stock holdings knowing we as fans cant match the investment or put up the money needed to buy a block of shares, they change the articles of association to allow for an automatic buy out at X% and then they take control. It isnt difficult.

[shildonlad]

And i thought folks imaginations on here were running wild mentioning raj singh and never thought the investor would be him. Is he trying to right the wrongs of the past?

Sent from my LG-H850 using Tapatalk

[Quakerz]

NEVER,NEVER,NEVER.
Beggars belief that this traitor thinks he can buy our club for £40000.

The constitution currently prevents any one individual from owning more than 15% of the club.

Raj buying £40,000 worth of shares will mean the budget is comfortably boosted whilst he has a shareholding of less than 15%.

In reality, if we accepted this cash injection but then decided after reviewing his further proposals that it would not suit our model going forward, then he can be blocked from acquiring any further shares.

He would simply be another shareholder, and he could either sit on his 40k of shares or start to sell off his shares if he wished.

As it stands the situation is a 40k cash boost with little to lose for us.

Right now, it's a no brainer.

I'm more interested in finding out WHY he wants to be back at the club though - it just makes no sense!

[theoriginalfatcat]

Acquiring a shareholding of £40,000 is in accordance with the current Articles of Association, which limits the shareholding of an individual to 15% of the total issued share capital.

I see, there's a limit.

If DFC’s shareholders decide to accept Raj Singh’s offer to contribute to next season’s playing budget by acquiring £40,000 of equity in the club, he would then develop further proposals on how he would like to increase his (and potentially that of others) involvement,

But maybe not a limit, if you've got a cunning plan.

[Magical Quakers]

How much do we think he received from his half of the ongoing transfer clauses (Dan Burn).

[lo36789]

I don't think £40,000 gets him 15% what it is saying is £40,000 won't breach the 15% as detailed in the Articles currently.

Why do we actually have to vote then? If it doesn't breach anything surely he could just put in 40k

Sent from my SM-G955F using Tapatalk

It is a share issue. The Supports Group as the controlling owner of the club need to vote on whether to release 40,000 ordinary shares of unalloted share capital. You need a 75% vote to do that.

Last filing history shows 321,000 shares out there. This would take us to 361,000 with RS holding 40,000 (11.08%). DFCSG have an 80% share currently plus a golden share worth extra.

[DarloDave40]

Seems a sensible move to me, at the end of the day this investment is not about assets or property so I'm willing to give Raj the benefit of the doubt and see what he has to say on Netcafe, statement also mentions potential two other investors I wonder when they show their hand. At the end of the day the club has probably gone as far as it can being fan funded if we can get the model right with the DFCSG on the board with protection in place then why not.

[lo36789]

How long does it take for someone else to buy 15% and someone else to buy 15% and someone else and suddenly while no one person owns more than 15% one shareholding block does and can then drive the direction of the club.

They issue more share capital at decent prices or preferential shares in exchange for more investment and water down the stock holdings knowing we as fans cant match the investment or put up the money needed to buy a block of shares, they change the articles of association to allow for an automatic buy out at X% and then they take control. It isnt difficult.

Mr Tibbs has already covered this. Legally the community benefit company cannot diminish its interests. Basically holding anything above 75% is pointless as it gives you no additional control or anything you are entirely in control of the Articles of Association etc.

If someone else came in to take the share beneath this then actually a share issue could not be agreed to by the DFCSG as it would dimish its interests in the assets which are locked for community benefit.

[Beano]

The constitution currently prevents any one individual from owning more than 15% of the club.

Raj buying £40,000 worth of shares will mean the budget is comfortably boosted whilst he has a shareholding of less than 15%.

In reality, if we accepted this cash injection but then decided after reviewing his further proposals that it would not suit our model going forward, then he can be blocked from acquiring any further shares.

He would simply be another shareholder, and he could either sit on his 40k of shares or start to sell off his shares if he wished.

As it stands the situation is a 40k cash boost with little to lose for us.

Right now, it's a no brainer.

I'm more interested in finding out WHY he wants to be back at the club though - it just makes no sense!

This.

[super_les_mcjannet]

Why is he wanting to specifically put his money towards a playing budget for a club that has currently no prospect of achieving promotion?

£40k buys him 15%.

We need to raise a further £160k to get the ground fit for promotion in the next 10.5 months.

I Singh gambling on us failing to achieve this so that come January he can step in and say " you're knocking on the door of promotion bit you can't go up without my help to improve the ground"?

Another £90k (on those figures) would be required from him to go above 50% ownership.

Sent from my SM-G930F using Tapatalk

I think you have it spot on Spyman, this is a strategic move. if you accept this, you accept Singh to eventually take over the club, everyone can make their own choice on that.

[theoriginalfatcat]

statement also mentions potential two other investors I wonder when they show their hand.

When Singh tells them to?

[spen666]

If Singh had handed over the football share back in 2012, then Darlington would not have had to sink to the NL and fight their way back up over the last 5 years.

The £40,000 should be a gift to club to partially compensate the club and fans for his actions. It should not be getting him a 15% or any share of club.

He should be compensating the club and fans before buying a stake in the club


The q and a will be fascinating to hear his explanation over the football share saga

[Darlo_Rob]

When the £10k was put into the pitch fund didn't the board say that it had been put in by two potential investors. I wonder if one of these was Singh or two completely different people who maybe wanted more control than 15% but we don't allow this. John Tempests opening paragraph suggests he has spoken to more than one investor.

[notgnilrad]

Raj did give us one of the best days out in my life supporting Darlington and built us a good squad when he was here.
It was what he did after that although Exodus didn't help, what is in it for him and why does he want to come back.
It doesn't make any sense, its like going back to your ex after they have slept with your best mate, doesn't sit right with me somehow.

[Wijnhard's_Schlong]

Think long and hard about the events of 5 years ago. The fact that anyone would entertain this fucker in any capacity let alone give consideration towards an investment proposition into DFC genuinely amazes me. Showed his true colours by the way he handled matters in 2012 - don't give him the satisfaction of well and truly shafting the club once again. I don't mind admitting that I really liked the bloke in the early days but the way things ended is unforgivable. It goes without saying that there must be an ulterior motive here and I have no interest in finding out what that may be.

No thanks Raj, stick your £40k up your arse.

[banktopp]

NEVER,NEVER,NEVER.
Beggars belief that this traitor thinks he can buy our club for £40000.

The constitution currently prevents any one individual from owning more than 15% of the club.

Raj buying £40,000 worth of shares will mean the budget is comfortably boosted whilst he has a shareholding of less than 15%.

In reality, if we accepted this cash injection but then decided after reviewing his further proposals that it would not suit our model going forward, then he can be blocked from acquiring any further shares.

He would simply be another shareholder, and he could either sit on his 40k of shares or start to sell off his shares if he wished.

As it stands the situation is a 40k cash boost with little to lose for us.

Right now, it's a no brainer.

I'm more interested in finding out WHY he wants to be back at the club though - it just makes no sense!

Perhaps Pallister will be the next to invest £40000, and then another of his mates.
Don't touch his money . Why did he go missing in 2012 and then shaft us. Is there collective amnesia in Darlington.

[Trike1]

he can stick it where the sun doesnt shine
he fucked us over lied piublicly and caused us to start again with those s*** numbers

if he comes back we will be the laughing stock of football