Shares In Local Football Club?

Ollie90

Hi,

So close to my house there is a local football club who are currently a Top 5 Team in the League below the Conference. The last few seasons they have finished in the top three and I believe its only a matter of time before they get promoted into the Conference. I enquired to the club and they confirmed that they sell shares of the club, so I have a few questions I'd like to ask before doing this.

- Would I be in any way possible responsible if the club got in any huge debt?
- Would I need a Solicitor or anything for me to buy these shares?

Any other help/information would be great.

I will probably think of more questions soon but any help would be appreciated.

opinions4u

Football as an investment is invariably a shocking idea.

Shareholders are not liable for the debts of a limited company. But the value of their share will reflect any debt.

markwilkinson

If you are a fan then why not own part of the club, just don't treat it as an investment.

Former LUFC shareholder.

mollycat

markwilkinson wrote: »

If you are a fan then why not own part of the club, just treat it as an investment.

Former LUFC shareholder.

Worst piece of advice i've ever seen on these boards.

OP, keep your money where it is, this is a bonkers idea!!

Good luck.

markwilkinson

mollycat wrote: »

Worst piece of advice i've ever seen on these boards.

OP, keep your money where it is, this is a bonkers idea!!

Good luck.

I missed the word DON'T out! Will go back and edit.

jimjames

mollycat wrote: »

Worst piece of advice i've ever seen on these boards.

OP, keep your money where it is, this is a bonkers idea!!

Good luck.

If you want to support your club and the investment is only a very small portion of your portfolio AND you realise that you could lose the lot then why not? No different to going out buying a season ticket or splashing out a new car.

Obviously I'm assuming amounts are up to say £1000 and it isn't money you need. Enjoy supporting your club with the shares but beyond that I would agree it is bonkers as an investment

Ollie90

I'm not talking about thousands of pounds of investments and I don't intend it to make thousands of profit either. Its more of supporting my local club financially and giving it extra backing as well as experience of being a shareholder of a football club.

I have a further 2 questions:

- Would shares in a football club pay annual dividends?
- If it had a take-over or chairman change, would this make the shares invalid?

Thanks

jimjames

Ollie90 wrote: »

I'm not talking about thousands of pounds of investments and I don't intend it to make thousands of profit either. Its more of supporting my local club financially and giving it extra backing as well as experience of being a shareholder of a football club.

I have a further 2 questions:

- Would shares in a football club pay annual dividends?
- If it had a take-over or chairman change, would this make the shares invalid?

Thanks

The answer to both is "it depends"

Some clubs may be dividends, others may not. They may also offer perks to shareholders such as discounts or priority tickets. I hold shares in Eurotunnel and get 30% of all fare for example.

As you are a part owner of the club the shares would not be invalid unless the club is bankrupt. The new owner would need to buy out the existing shareholders if they want to own 100% of the club.

grey_gym_sock

this is fine so long as you assume your shares will become worthless, and treat anything you might get back as a bonus. if you expect to get the same money back, never mind make a profit, then it's over-hopeful, given it's a very small business and in an area of business (football) which almost always gives poor returns.

Ollie90

Thanks for your help and advice, I was wondering though:

- Would I need a solicitor or anything to do any formalities?

Reaper

Ollie90 wrote: »

Thanks for your help and advice, I was wondering though:

- Would I need a solicitor or anything to do any formalities?

I assume they are Ordinary shares, in which case no. You just need a stock broker to arrange the buying & selling, unless the club sells shares directly to the public.

If they are traded on a big stock market like LSE or AIM then practically any stockbroker will do, but as you haven't said who they are I don't know. I'm sure the club can advise you though.