Trust proposes United fans' share scheme
Leeds United Supporters Trust 3/4/14
Leeds United Supporters’ Trust would like to start canvassing opinions from fans about our Fan Share Scheme proposal, that will allow fans to buy a stake in the club and ensure supporters have a voice at Elland Road.
The scheme will be open to all individuals, groups, businesses etc without discrimination or prejudice. It will be administered by the Trust, who over the last twelve months have undertaken the work required to be in keeping with Financial Conduct Authority (FCA) regulations, and with our responsibilities as an Industrial and Provident Society (IPS).
The proposal is to offer two donation options.
The first is to donate to a fixed sum that would provide a pot of money with which shares in the club could be bought outright. The size of the shareholding bought would be negotiable dependent on the amount pledged.
The second is to make monthly donations by direct debit or standing order to provide an annual sum that can be invested in the club to buy additional shareholdings, or for specific purposes as the donators choose. Use of this money would be written into any agreement with the club’s owners.
We are planning to have a scheme in place whereby donators who would like to make a fixed upfront donation but don’t have the cash available would be able to use an affordable loan system, so they could donate upfront to the fund and then pay the money on a monthly basis. Loans would be granted alongside a savings scheme, so that repayments would also build up a small savings fund for each donator at the same time. With this scheme we hope that all fans will have the opportunity to donate.
As part of the Trust’s constitution a LUST board member would be required to have a non-executive place on the board at Leeds United to facilitate the Fan Share Scheme. To ensure a fully independent and democratic process, alongside this any donator will be able to nominate themselves for a second place on the board, which will be voted for by all the other donators. This will be a condition of the Fan Share Scheme.
The amount of any financial donation will not buy the donator any more power or authority than any other. Each donation will give the donator one vote: one donator, one vote.
As a legal requirement of the rules that govern LUST as an IPS, enforced by the FCA, all donators will become free members of LUST.
Donators can choose one or both donation options.
We plan to begin canvassing opinions on this scheme next week, but feel that with the situation at the club at the moment it is important to give our members, supporters’ groups and Leeds fans the chance to think about these proposals.
The canvassing exercise will not commit anyone to any financial obligations; we will use the feedback to make informed decisions about our financial plans going forward.
The scheme is not dependent upon who gains control at Leeds United. LUST can and will work with any owner to ensure that supporters have a voice, and that their money can be used for the future benefit of the club.
Leeds United Supporters’ Trust would like to start canvassing opinions from fans about our Fan Share Scheme proposal, that will allow fans to buy a stake in the club and ensure supporters have a voice at Elland Road.
The scheme will be open to all individuals, groups, businesses etc without discrimination or prejudice. It will be administered by the Trust, who over the last twelve months have undertaken the work required to be in keeping with Financial Conduct Authority (FCA) regulations, and with our responsibilities as an Industrial and Provident Society (IPS).
The proposal is to offer two donation options.
The first is to donate to a fixed sum that would provide a pot of money with which shares in the club could be bought outright. The size of the shareholding bought would be negotiable dependent on the amount pledged.
The second is to make monthly donations by direct debit or standing order to provide an annual sum that can be invested in the club to buy additional shareholdings, or for specific purposes as the donators choose. Use of this money would be written into any agreement with the club’s owners.
We are planning to have a scheme in place whereby donators who would like to make a fixed upfront donation but don’t have the cash available would be able to use an affordable loan system, so they could donate upfront to the fund and then pay the money on a monthly basis. Loans would be granted alongside a savings scheme, so that repayments would also build up a small savings fund for each donator at the same time. With this scheme we hope that all fans will have the opportunity to donate.
As part of the Trust’s constitution a LUST board member would be required to have a non-executive place on the board at Leeds United to facilitate the Fan Share Scheme. To ensure a fully independent and democratic process, alongside this any donator will be able to nominate themselves for a second place on the board, which will be voted for by all the other donators. This will be a condition of the Fan Share Scheme.
The amount of any financial donation will not buy the donator any more power or authority than any other. Each donation will give the donator one vote: one donator, one vote.
As a legal requirement of the rules that govern LUST as an IPS, enforced by the FCA, all donators will become free members of LUST.
Donators can choose one or both donation options.
We plan to begin canvassing opinions on this scheme next week, but feel that with the situation at the club at the moment it is important to give our members, supporters’ groups and Leeds fans the chance to think about these proposals.
The canvassing exercise will not commit anyone to any financial obligations; we will use the feedback to make informed decisions about our financial plans going forward.
The scheme is not dependent upon who gains control at Leeds United. LUST can and will work with any owner to ensure that supporters have a voice, and that their money can be used for the future benefit of the club.
