I am rather more sceptical about fan owned clubs than many analysts. Of course, I do understand the motivations behind them and I am a shareholder in my local phoenix non-league club. However, I do think they face a lot of financial challenges, even if they have a relatively prosperous fan base.
Last December AFC Wimbledon faced a £11m shortfall on the completion of the construction of their 9,000-seater stadium at their spiritual home of Plough Lane. At a special general meeting of the Dons Trust, it was explained that outside investors had offered £7.5m in return for a 30 per cent stake. That would have seen the Trust in effect surrender control of the club.
A small group of three fans devised the Plough Lane Bond and yesterday it was launched to a wider public at an event in London. It is attempting to raise £5m towards the shortfall on the stadium by offering bond holders annual returns of up to four per cent on five, ten or 20 year investment terms. That is a decent coupon at today's rates, although one has to factor in an element of risk. As of last night it had raised £2m.
They need to raise another £3m by February 14th so that the club can raise the rest of the money from a commercial lender by the end of the month. I wish them well.
AFC Wimbledon are currently 20th in League One, although six points ahead of Tranmere Rovers in the first relegation place.
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