As promised, we are now in a position to provide some additional information regarding the question we’ve balloted our members on. The simple fact is that with the costs of administration and the football debt still to be repaid, it was always our plan to bring in further external funding over the course of this season and next. However, it has proven difficult to do this while maintaining a shareholding of over 50%, and as a result, the choice is clear: refuse the money on the table, and cut our cloth drastically next season, particularly in terms of the playing budget; or accept the significant funding which is currently on offer.
As a result, the following proposal from the Club board has the backing of the Society board and is recommended to our members for their approval.
The aim is to raise up to £500,000 over the next 12 months for the club through a partnership between the Society, the Dark Blue Business Trust, current shareholders, businesses and fans.
Of this, it is anticipated that £300,000 could come from private investors, and already £170,000 has been offered. A further £100,000 could come from current shareholders through a rights issue, while the Society and the Business Trust hope to contribute a further £50,000 each.
If the target is achieved as outlined above, the Society’s shareholding would drop to around 37%, the Business Trust would hold 8%, and the rest would be held by a number of private investors and ordinary fans. However, the Dundee FC Supporters’ Society would remain the club’s biggest single shareholder, with three directors on the Club board.
The directors of the Club and the Society will be in attendance at the Society AGM, which takes place this Saturday at 10am for 10.30am in the Taxi Club, Rosebank Street, and a Q&A session will allow members to discuss and debate any related issues.
The ballot closes at 5pm on Wednesday 14th December, and ballot boxes will be available at Dens Park before Saturday’s game, and in the club office thereafter. Ballot papers can be downloaded here or obtained at the AGM, the club shop or at the stadium on Saturday. Members will also be permitted to return fully-completed, signed ballot papers electronically, by scanning and emailing them to election@dee4life.com.
Once the ballot result is known, it is hoped to bring in funding swiftly, not because of any emergency or cashflow crisis, but simply to begin planning for next season. While many clubs are struggling to plan for next month, the club board is keen to look further ahead, and will also have to complete a return on the club’s financial stability for the SPL as long as promotion remains a possibility.
The club board will also honour their commitment to a mid-season Q&A early in the new year, and will combine this with a general meeting to tidy up any paperwork required of the club’s shareholders.
Both boards wish to thank the fans for tremendous support on and off the park, and would ask as many as possible to get along to Dens on Saturday, cast their votes, and give Barry and the boys their backing. Supporters are reminded that entry is just £10, free for Under-16s, and if the initiative receives a sufficient response, it will be repeated on Boxing Day. As always, with a big crowd expected, fans are asked to arrive early at the turnstiles.