Jump to content
Note to existing users - password reset is required Read more... ×
Sign in to follow this  
Haggerdoo

£3.5m Academy Fund - who's in?

Recommended Posts

And next may also be an unmitigated football disaster......Then we''ll see some really serious squealing and stamping on here.....

Share this post


Link to post
Share on other sites
What''s with this nephew Tom?

I know nothing about him.

What''s his experience? Any in football?

Seems weird.

Smith has gotten too big for her boots. I dislike her a little more as the seasons stumble on.

Surely NCFC deserves better than this selfish woman in this day and age.

Share this post


Link to post
Share on other sites

Swindon - unless you''ve pre-registered you''ll need to wait until next week.

https://www.tifosy.com/en/campaigns/invest-in-the-canaries-bond-and-help-build-our-future

Share this post


Link to post
Share on other sites
If you''ve pre-registered you will now have access to the investment documents and be able to invest.

I''ve read through the two documents: (i) Invitation Document; and (ii) Bond Instrument. I though I''d share some comments. Do bear in mind, I''m not an FCA-authorised IFA and I provide my comments for information purposes. It shouldn''t be considered a recommendation to either invest or not invest in the bond. While I believe all the information is accurate, it may include errors or inaccuracies. If you are considering investing, I would recommend speaking to a IFA and you should also consider your tax position. If you have questions about your tax position, think about speaking to a chartered accountant. With that out of the way...

[Where I give a clause number, like 2.2, I''m referring to clause 2.2 of the Bond Instrument, the legal doc for the bond. Where I give a page number, like p33, I''m referring to the Invitation Document.]

Some comments:

- You''ve got to be over 18 to invest

- If you decide to invest you have 14 days in which you can change your mind (statutory "cooling-off period")

- You have to invest in multiples of £500

- There''s no maximum (up to £5m)

- The club has to raise £2m to issue, if it doesn''t it''ll return your money

- There is no stated mechanism if the bond is over-subscribed (i.e. it doesn''t say if it''ll use first come first serve or proportionality). It can do what it pleases.

- The use of proceeds is set out on p24 and p25 of the Invitation. If the club gets more than the £3.7m it plans to spend it on further works at Colney.

- The intention of the raise appears to be pretty clear - the investment is to maintain Category 1 status for the Academy (mentioned numerous times, p21 p22 etc.)

- The financials are at p26-30 in the Invitation. I won''t go on about finances but of note, the club has negative cash for the last two years. On p31 the Club states its a going concern, but to have a positive cash balance the Club will have to sell players in 18/19. The club is aiming to be cash neutral from 19/20 onwards excluding player sales (by reducing wages etc.)

- The risks are set out on p36-38 of the Invitation.

Bond terms:

1. The bond is unsecured (that is, it is last in line for paying out and has no claims against the fixed assets of the Club). It''s issued by Norwich City Plc which is the parent company of the Club''s operations. On the other hand there are some relatively strong covenants to protect the bond holders (p33). These are:

1a. Protection against extra dividends - the club can''t suddenly start paying extra dividends to the owners (5.1 and p34)

1b. Protection against non arms-length transactions over £1m - the club can''t undertake to make less favourable transactions that aren''t arms-length (5.2 and p34). For example (and completely made up), paying Delia £2m for a guest appearance on TV on behalf of the club or buying all of Mr Foulger''s chickens for double the market price.

1c. The club has to offer to redeem the bonds (at 101% of principal) if it sells "material assets" i.e. Colney or Carrow Road (6.2.2 and p34).

1d. The club also has to offer to redeem the bonds (at 101% of principal) if the club has a change of control - roughly speaking if Delia and Mr Wynn Jones no longer control more than 50% of the shares in the club (6.2.1 and p34).

2. Interest - is paid annually and in arrears (4.2). 5% in cash, 3% in club credit for a total of 8% on the OUTSTANDING principal. Both are considered interest for tax purposes. Your interest will be paid net of 20% tax (p35). The club interest can be used on tickets, hospitality, refreshments, merchandise and special events. It cannot be used towards season tickets. The credit lasts for 12 months and does not roll-over, "you use it or lose it" (p10).

3. Promotion bonus - is 25% of the OUTSTANDING principal held as at 30/09 of the year the club is in the Premier League. It''s payable once only (4.4).

4. Redemption - The bonds can be redeemed by the holder on the later of 5yrs or on the anniversary each year after the 5yrs (6.1.1). But if the club gets relegated in the 5th year, the club can push out the redemption to 6yrs (6.1.2). You have to give electronic notice (i.e. through tifosy website/portal) AT LEAST 6 months prior to the repayment date (i.e. before 4 and a half years are up) if you want your money back on the 5th anniversary. You''ll be given notice 1 month before the four and a half years as a reminder (6.1.2). You don''t have to redeem but...

4a. The club can pre-pay up to all of the principal and accrued interest after one year. i.e. it can reduce the outstanding principal to nothing after one year is up. If the club has repaid all the principal, the outstanding principal is nothing and you''ll get no interest and no bonus. In short, the club can pay you back whenever it wants after year 1.

5. The bonds are not transferable - you can''t buy and sell them (2.35). The mechanism by which they are transmitted via inheritance or bankruptcy is set out in clause 12. The bond cannot be held by more than one person except you can hold the bond in joint names if you are spouses (2.3).

6. The bonds become immediately payable on default (administration, wind up or default on payment) (8.1).

7. The bonds are probably SIPP-able, you need to contact your SIPP adviser and go via them to get the bonds in SIPP (p34).

Share this post


Link to post
Share on other sites
Guest
I have registered only for the moment but am 99% certain to buy a thousand pounds worth.

Share this post


Link to post
Share on other sites
I contacted my SIPP provider and they were very vague about whether it could be included within their platform. Basically said that they couldn''t say until the bond was issued.  Anybody know if there is likely to be any problem of buying a bond outside a SIPP and then transferring it into it after the purchase?[*-)]

Share this post


Link to post
Share on other sites

Thanks again Buncey. You''re a great asset to the board. Len''s got his work cut out this week on Rays Funds and I''d love it if you could leave a guest selection.

I''ve done a monkey. The deal clincher for me was 1d about change of control. I''ve pawned my gold bogbrush and bingo ball to raise the dosh. Good luck together 👍

Share this post


Link to post
Share on other sites
[quote user="PurpleCanary"][quote user="Matt Juler"]Made my investment yesterday, anyone else taken the plunge?[/quote]I plan to.[/quote]

I would happily invest in the academy on the following terms:

1. The Suffolk Socialists and the rest of the Board tender their resignations and that I have copies of the same on my desk by 9.30am on Monday morning.

2. The Suffolk Socialists formally put the club up for sale and confirm this by way of a press release by 9.30am on Monday morning.

3. Should a sale not be completed for any reason whatsoever within 6 months, then NCFC agree to cancel any bond investment and refund the money on demand.

Share this post


Link to post
Share on other sites
[quote user="Big Vince"][quote user="PurpleCanary"][quote user="Matt Juler"]Made my investment yesterday, anyone else taken the plunge?[/quote]I plan to.[/quote]

I would happily invest in the academy on the following terms:

1. The Suffolk Socialists and the rest of the Board tender their resignations and that I have copies of the same on my desk by 9.30am on Monday morning.

2. The Suffolk Socialists formally put the club up for sale and confirm this by way of a press release by 9.30am on Monday morning.

3. Should a sale not be completed for any reason whatsoever within 6 months, then NCFC agree to cancel any bond investment and refund the money on demand.[/quote]They are considering having an emergency meeting to discuss your terms Vince but want to know precisely how much you would invest?

Share this post


Link to post
Share on other sites
Guest
I''ve done a monkey. The deal clincher for me was 1d about change of control. I''ve pawned my gold bogbrush and bingo ball to raise the dosh. Good luck together 👍

Do you know, I read that at first as if the deal clincher was an old penny!

Haven''t you heard of inflation or is your real name Private Fraser?

Share this post


Link to post
Share on other sites
Vince''s terms are strictly non-negotiable (ie. he will not suffer these fools for any longer than set out in the terms.)

Share this post


Link to post
Share on other sites
Pops, it was all those people who spent an old penny that helped me get the gold bog brush that I could pawn for the monkey.

If Vince has his way my money will be refunded. But then would Vince really step up to the plate?

Viva Smith and Jones 👍

Share this post


Link to post
Share on other sites
Guest
Pops, it was all those people who spent an old penny that helped me get the gold bog brush that I could pawn for the monkey.

I bet those limbo dancers owe you a few bob then.

Share this post


Link to post
Share on other sites

[quote user="Big Vince"][quote user="PurpleCanary"][quote user="Matt Juler"]Made my investment yesterday, anyone else taken the plunge?[/quote]I plan to.[/quote]

I would happily invest in the academy on the following terms:

1. The Suffolk Socialists and the rest of the Board tender their resignations and that I have copies of the same on my desk by 9.30am on Monday morning.

2. The Suffolk Socialists formally put the club up for sale and confirm this by way of a press release by 9.30am on Monday morning.

3. Should a sale not be completed for any reason whatsoever within 6 months, then NCFC agree to cancel any bond investment and refund the money on demand.[/quote]I think this is a great plan, and I cannot see any flaws at all. That said, these en bloc resignations would leave the company with no directors, which is a breach of UK corporate law/governance.But that could be solved by an EGM at which a set of new directors would be appointed, by the usual way of a majority-shareholding vote. Since Smith and Jones would still have that majority (Vince''s conditions sagely making no mention of them having to divest themselves of their shares) they could solve that problem by appointing themselves, Smith, Foulger, Balls and Phillips back, having fulfilled Vince''s condition of having resigned.As to the company being up for sale, any decision on whether to accept any offer would still be made by a majority-shareholding vote, so again that would in effect be in the hands of Smith and Jones.It woudl be legally impossible to scrap the bond investment if there was no sale, since that condition - admirable as it might seem - was not in the terms and conditions of the offer, to which money has already been pledged.So, no, no flaws at all.

Share this post


Link to post
Share on other sites
[quote user="Matt Juler"]Made my investment yesterday, anyone else taken the plunge?[/quote]

Donated...I mean invested [:O] this morning. Trusting it runs smoothly and hope the PL bonus comes good at some stage!

Share this post


Link to post
Share on other sites
Regardless of your views on the Canaries Trust, they''re offering investors who can''t afford £500 the chance to subscribe (min £100).

http://www.canariestrust.org/News

Please don''t ask me any questions about it, I don''t have any answers - I just thought it might be of interest!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×