About The Bid
by Scott Thornberry - 17th February 2012
The group that has been granted an exclusivity agreement by Harvey Madden, the administrator of Darlington Football Club comprises of members from the original Rescue Group, Darlington Supporters Club, Darlo Uncovered, DAFTS and Darlo Tykes.
At the time of writing the Supporters Trust, despite a number of requests are yet to come on board, however they have been invited to take up the 2 for 1 share offer with the money they collected to save Darlington FC a number of years ago. Given the speculated funds they have at their disposal this could potentially buy at least a 10% stake in the new company which plan to take Darlington Football Club out of administration.
The group has already raised £70K which has been passed to the administrator Harvey Madden in return for an exclusivity agreement that will allow the club to be taken out of administration subject to a successful first phase share issue, that capital along with what is already in Harvey Madden’s pot and the income from home forthcoming home matches is seen to be somewhere near what will be required to take the club to the end of the season. If the club folds before the end of the season, the £70K worth of shares will be lost. The other share issues will be guaranteed in the sense that the money for each phase will not be released until the full amount has been raised. If the full amount is not raised, or the club folds, the money will be returned to the investor.
The share issue will be divided into three phases, each of which will go towards fulfilling a vital milestone in the quest for a sustainable community club:
1) To raise enough capital to pay football related debts - £250K
2) To raise enough capital to pay non football related debts - £250K
3) To put in place a cash reserve for the club to hold - £250K
The amounts to be raised at each phase are not the exact amounts required to exit each stage, but will allow each stage to be reached and the investments passed to the company.
As mentioned above, the shares sold during phase 1 will be done so on a 2 for 1 basis, this is to entice buyers to snap up shares quickly as phase 1 is by far the most critical phase, this first issue must be completed before the club can exit administration, if that does not happen before the Conference AGM at the beginning of June then the club will be relegated.
A temporary board of directors will be put into place in the interim but once the new company is up and running and has acquired the football club, the shareholders will be able to nominate and vote for a board of 8 directors that will serve up to a maximum of 3 years before requiring to stand down or be voted in once again. There will be a maximum of 2 directors per year that will change in order to give some continuity. To achieve this the first board of directors will have two members who will only stand for 1 year and two members who will stand for 2 years to allow this cycle to begin.
Shares priced at £100 each can be bought up to a maximum of 15% of the overall issue of 10,000 either:
1) Individually (Business or Personal)
2) As a personal group (i.e. Friends)
3) By donating to an Official group (i.e. Uncovered, Supporters Club, DAFTS) who can in turn purchase shares - please contact the individual groups for full details of how they will be managing this.
Full details of the share scheme can be found at www.buydarlo.org