Boost the budget update
Posted: Wed Jul 18, 2018 6:19 pm
Received the following email tonight - seems a very sensible proposition and it's really encouraging to see these kinds of things taken into consideration:
Thank you again for contributing towards our Boost The Budget scheme. We are contacting contributors to let them know that DFCSG is proposing to utilise the receipts from the Boost the Budget scheme to acquire equity in Darlington Football Club rather than transfer the monies as a straight donation. Every penny received from the Boost The Budget scheme will still go to the Football Club and every penny will be utilised by Tommy in his playing budget. However, the reason we are proposing to change the manner in which the funds are transferred to the Football Club is twofold:
Firstly, funds used to acquire equity in Darlington FC would not contribute to any potential operating profits that could be subject to corporation tax. In the event of the Football Club posting an operating profit, this could mean potentially 20% of the funds donated by fans could go to the exchequer. Our proposal would reduce the potential of that happening;
Secondly, DFCSG’s target is to increase our stake in Darlington FC from the current 82% to 90%. The reason for this is that if we had a 90% stake in the Football Club then if we were to launch a Community Share offer, then we would qualify for the Government’s EIS scheme that would enable investors to receive personal tax benefits, which would make it a lot more attractive prospect for potential investors. This could be crucial in the event that we achieve promotion to the National League and further ground investment is required.
If you are at all unhappy with the above proposal, please reply by email to neil.raper@dfcsg.co.uk and we will ensure that all of your individual Boost The Budget contributions are transferred directly to Darlington FC as a donation. If you are content with our proposal, you do not need to take any action.
Yours sincerely,
Chris Stockdale
Chair
Darlington FC Supporters Group
Sent from my Pixel 2 using Tapatalk
Thank you again for contributing towards our Boost The Budget scheme. We are contacting contributors to let them know that DFCSG is proposing to utilise the receipts from the Boost the Budget scheme to acquire equity in Darlington Football Club rather than transfer the monies as a straight donation. Every penny received from the Boost The Budget scheme will still go to the Football Club and every penny will be utilised by Tommy in his playing budget. However, the reason we are proposing to change the manner in which the funds are transferred to the Football Club is twofold:
Firstly, funds used to acquire equity in Darlington FC would not contribute to any potential operating profits that could be subject to corporation tax. In the event of the Football Club posting an operating profit, this could mean potentially 20% of the funds donated by fans could go to the exchequer. Our proposal would reduce the potential of that happening;
Secondly, DFCSG’s target is to increase our stake in Darlington FC from the current 82% to 90%. The reason for this is that if we had a 90% stake in the Football Club then if we were to launch a Community Share offer, then we would qualify for the Government’s EIS scheme that would enable investors to receive personal tax benefits, which would make it a lot more attractive prospect for potential investors. This could be crucial in the event that we achieve promotion to the National League and further ground investment is required.
If you are at all unhappy with the above proposal, please reply by email to neil.raper@dfcsg.co.uk and we will ensure that all of your individual Boost The Budget contributions are transferred directly to Darlington FC as a donation. If you are content with our proposal, you do not need to take any action.
Yours sincerely,
Chris Stockdale
Chair
Darlington FC Supporters Group
Sent from my Pixel 2 using Tapatalk
