Cambridge United`s `Fans United's` bold scheme to buy-back The Abbey Stadium from Bideawhile for the benefit of the Blue Square Premier club, fans and the wider community received a huge boost with the news of a single confirmed pledge of £250,000.
And they now have over 600 individual pledges - bringing the total to approx £1.1million.
A pre-exemption clause attaching to the lease between current owners Bideawhile and Cambridge United FC gives the club a chance to facilitate its own buy back of the ground in preference to the agreed sale to major property developer, Grosvenor Developments.
This clause effectively gives only another 7 days for the club and Trust to raise an initial deposit of £350,000 and secure guaranteed funding to pay the remaining sum of £3.15 million pounds.
The proposal is to set up a company to buy back the stadium. This company would be formed by the sale of its 3,700 shares. Each share would cost £1,000 to buy. The sale of these shares would raise the sum required to buy back the ground from Bideawhile (including stamp duty and other set-up costs).
The company would lease the ground to Cambridge United FC at a much reduced rent - potentially saving the club a six-figure sum each and every season.
The company's annual profits would be distributed amongst its shareholders. Even with a reduced rent there is an opportunity to provide an attractive return to investors, especially as many deposit accounts at banks/building societies are paying 1% or less to their savers.
At a public meeting held at the Supporters Club on Monday evening, Fans Trust Chairman, Dave Matthew-Jones said "There is no escaping the fact that this is a huge task, but to have come from nowhere to pledges in excess of £1M in seven days is an outstanding feat. We certainly are confident of raising the rest but time is running very short."
Colin Proctor, Fans Elected Director of CUFC, commented that a scheme was being set up with the help of experienced London solicitors and City financiers who would ensure that the scheme met criteria laid down by the Financial Services Authority. "We originally felt a Community Interest Company ("CIC") would best serve our purposes but we are exploring all avenues including a PLC and have people working on inventive ways of funding the non-returnable £350K deposit.
"It is important that potential investors are aware that we are offering an opportunity to invest in a football stadium and the land upon which it sits. Our ultimate goal is to decrease the current rent that Cambridge United pays, whilst offering a good rate of return for investors into the scheme.”
Paul Barry, Chairman of CUFC issued a statement supporting the initiative: "This football club is blessed with some of the most loyal and imaginative fans in the country. With time being short on the option, I hope for a positive outcome that will put the club on a stronger financial footing."
Colin Proctor added: "We have come a long way in a week, and pledges of support are coming in all the time. However, we are under no illusions that the task ahead will be easy. We wish to speak with all the parties involved, including Bideawhile and Grosvenor Developments in the hope of reaching a satisfactory conclusion for all concerned."
This is a large sum to raise, but we believe it can be done.
