The aim of Newcastle United Supporters Trust (The Trust) and its partners proposal is to acquire 100 per cent of the ownership in Newcastle United Football Club.
The Trust believes in the democratic representation at NUFC by its fans and the model of ownership will reflect this.
The aim of the launch is to raise the profile of the YES WE CAN campaign through local and national media outlets with a view to assisting the Trust with its aims. The concept of fan ownership of professional football clubs is widely supported not least by the fans themselves but also by the Supporters Direct and is already widely used in Europe, at clubs such as FC Barcelona, Real Madrid, Bayern Munich and many more clubs around the world.
The Trust believes that combined financial resources of thousands of Newcastle fans and local business, the community and private investors, with access to professional management can bring stability and provide a solid platform for success both on and off the football field.
How does the plan work?
Members will be able to vote and stand for election, with a view to taking a position on the Trust board, which will be responsible for appointing supporters' representatives to the Board of Newcastle United Football Club.
A club President will be elected by members and will bring in their ‘team’ of 3 appointees and one statutory Pension Actuary to manage the SIPP element. This is set out in more detail in Football Club Management section.
Initially the Supporters' Trust will work to raise an appropriate market price to buy out the current owner and is dependent on the current financial position of the club with plans to capitalise the club to enable investment both on and off the pitch.
In addition, we will reveal a model that will ensure a long term stable business plan to be implemented by the elected Board, headed by the President. Initially our investment product is aimed at investors with cash (minimum £1,500) and can include other investment products such as Self Invested Pension Plans at a mimimum transfer of £25,000.
The principle of 1 + 1 still stands but obviously larger investors will enjoy larger financial returns. Projected returns are 2% per annum in years one and two, with further projections based on information released by the club whilst we undertake due diligence.
The investment in NUFC will aim to return annual interest of 2% on funds invested. A total of £200m would cost the club £4m per year (against a current annual interest cost of £3.9m).
This would provide significant working capital for player transfers and football related business.
Dependant on the success of the initial launch, phase 2 will involve an intensive campaign with the aim of reaching much larger numbers of fans, especially in the expatriate community.
The structure will involve a tax efficient vehicle that will enable fans to purchase a share in the club via pension funds and/or private equity. The scheme will be eligible for SIPP SSAS and private equity investors.
Football Club management
The day to day management of the club will be carried out by suitably qualified professionals, on appropriate contracts, supported by a number of non-executive directors appointed by the Trust. The aim will be to ensure corporate governance in accordance with the very highest standards.
We believe opportunities exist for commercial income growth after a period of underperformance by the present owners.
The Football Club board composition will be a President, Chief Executive Officer, Finance Director, Legal Director, Commercial Director, with the President elected and accountable for the performance of the football team during his or her tenure.
It will also consist of 6 members directly elected through the Supporters Trust. The Football Club will be responsible for all football and commercial matters of NUFC. This section will be expanded during the launch of the business plan in the near future
Who's Involved?
The Trust and its partners have put together a very strong management team to act as a steering group in securing the investment and putting in place the fans' buy out vehicle.
The aim is to get to the point where the supporters/shareholders - acting through the Supporter's Trust - own the club and ensure the board runs the club in accordance with the highest standards laid out by its constitution and corporate governance policy.
The Club should reflect the aims and values of the City, not only off the pitch but on it too. The Club should aspire to operate with integrity, honesty and in a manner that reflects the very best values embodied in the tradition of the Club.
No member of the steering group - whether company or individual - has been paid or received fees in any work carried out so far in putting together the proposals.
The most important factor is that The Trust and its partners are seen as a credible solution to the current ownership problem at NUFC. To be credible money needs to be raised.
This proposal is not an offer for investment, serving only to provide a platform for more detailed proposals. A Trust will listen to the views of the fans, ensuring the interests of NUFC are put first in all circumstances.
