Hall Of Fame
I enclose the Dundee Football Club Limited Filing History from the Companies House website which shows that two large blocks of shares were issued on 9th February 2024. https://find-and-update.company-info...filing-history
The first block was 14,222,222 at 1.35p each which equates £192,000 issued to Gordon Strachan in respect of his consultancy agreement with Dundee Football Club Limited dated 30th January 2023.
The second block was 3,805,716 shares in exchange for a payment due to Football Partners Scotland LLP of £51,377.17.
I have my own thoughts why Dundee Football Club Limited would be due Football Partners Scotland (FPS) this sum of money and I would be interested to read other posters thoughts on both the issue of the blocks of shares and why FPS were due this sum of money which has never happened before during the Dundee Football Club Limited financial year.
Hall Of Fame
Really ?Originally Posted by islaydarkblue
It’s going great on the pitch for the first time in years and you go digging up sh:t like this for what reason ? On another post it was said, what happens when they decide enough was enough, with “fans” like you around I think that day might come sooner if they read your stuff, that would probably please you, all because Nelms didn’t shake your hand and bow to your wife
Hall Of Fame
What's your thoughts Islay.
Give us something to gnaw on.
Hall Of Fame
I got the email from Companies House a few days ago but in all honesty I have no idea what this sort of thing is about.
If Dundee FC were due FPS around £51,300 then I'd think it was likely repayment of a loan. However if the payment was made in shares then essentially it makes no odds right now other than increasing their overall share percentage and diluting the A Share 'worth'.
More interesting that Strachan has taken a payment in shares. If I was in his position and thought there was a chance of something happening with the club whereby I'd end up with nothing I'd want cash not shares. So maybe he sees the value of his £192,000 of shares increasing rather than decreasing? Or maybe he's just stupid.
Please enlighten us all with your paranoid ramblings though.
Hall Of Fame
The first surely is just Strachan being paid in shares rather than cash and the second turning a debt into equity. Don't see why any problems there.
One thing that I wonder about is why is the share price as low as 1.35p? How many shares are in existence, Islay, it must be an astronomical number. Why not 100 old shares turned into 1 new share with a share price of £1.35? Or do we have a huge number of fans owning only 100 or even 1000 shares worth only a pittance but a nightmare to administer?
Hall Of Fame
I suggest that you look at the enclosed Filing History where you will read the full list of shareholders at 13th February 2023. It was submitted to Companies House on 29th March 2023
Hall Of Fame
Wow I knew we had a lot of shareholders but didn't think it was as much as shown there. There are shareholders with 1 share worth a penny. Surely the whole set up is a logistical nightmare to run!
Hall Of Fame
The following are my thoughts on the reason for the two large blocks of shares being issued on 9th February 2024.:
1. I am surprised that Gordon Strachan was happy to take shares in lieu of cash especially as the shares have effectively no value.
Dundee Football Club Limited despite what some supporters think does not own the Dens Park Stadium.
For those of you who have not read the Dundee Football Club Limited Fling History on the Companies House website share transactions whether existing shareholders purchasing new shares or Debt for Equity share transactions since June 2011 new 1p shares have been issued at 1.35p each.
2. The repayment of the £51,377.17 to Football Partners Scotland LLP (FPS) in a debt for equity share transaction on 9th February 2024 was announced six days after it was reported on the Dundee Football Club X (formerly called Twitter) site on 3rd February 2024 that the Two Brian’s had left the employment of Dundee Football Club.
I reckon that FPS paid the redundancy payments to the Two Brian’s and the repayment of their £51,377.17 outlay has been made by giving FPS 3,805,716 new shares at 1.35p each in exchange for their outlay.
This is the first time I have ever seen FPS hand over funds during the middle of the financial year and receive an immediate debt for equity share transaction to repay their financial outlay.
To date a debt for equity share transaction has taken often taken place after the annual accounts are announced which this year will be by 29th May 2024 in exchange for FPS writing off a similar amount of loans to Dundee Football Club Limited.
There has been an exception to this. On 8th February 2020 a large debt for equity share transaction took place.
Lindsay Darroch the Dundee Football Club Limited Company Secretary forgot to notify Companies House about this share transaction which was not notified until 7th January 2021 thanks to the Dee4life auditors highlighting this problem when they were calculating Dee4Life’s % shareholding in Dundee Football Club Limited shares for publication in the Dee4life annual accounts for the year ending 31st May 2020. See the enclosed filing history for details.
Finally. It has been well documented on the various Dundee FC supporters forums that FPS need to own 75% of the shares for American tax laws benefits.
Therefore for every new share issued to a minority shareholder FPS must purchase three new shares to maintain their 75% majority.
Gordon Strachan being issued 14,222,222 new shares in Dundee Football Club Limited means that FPS have to purchase 42,666,666 new shares to maintain their 75% majority shareholding.
Despite receiving 3,805,716 shares for the repayment of the £51,377.17 due to them has resulted in FPS no longer holding their 75% majority shareholding.
I would not be surprised if this is part of the exit strategy for FPS ( Tim Keyes) with FPS selling 29.99% of their shareholding in Dundee Football Club Limited to the owner of Burnley Football Club with the remainder of FPS’s shareholding being sold to other interested parties.
Meanwhile John Nelms will be left to go it alone with his new stadium development at the Camperdown Leisure Park.
I could be wrong, but you asked me for my thoughts and I reckon I have given you something to chew on.
Hall Of Fame
Could you show the total issued share capital and how much is held by FPS?
Hall Of Fame
Apparently when Dundee Football Club Limited advertised new shares for sale in a fundraising scheme they did not state that a minimum number of shares had to be purchased.
As a result DABs purchased one or two shares each which is a logistical nightmare.
A Dundee supporter I used to work beside received a Christmas present from his wife of 60 shares in Dundee Football Club Limited which cost her £30. This was about 30 years ago.
Thanks to subsequent recapitalisations he now owns 49 shares which have a value of 1.35p each which equates to a total value of 66.15p(66p).
A poor return from the £30 outlay even for sentimental purposes.
My colleague brought in a Dundee Football Club Limited set of annual accounts after the Bosman rule became law.
Dundee Football Club Limited wrote off a paper value of £8 million on all their players in their annual accounts for that year.
Since then the rich clubs have got richer and the poor clubs poorer as a result of players leaving at the end of their contract with no opportunity to receive a decent transfer fee for them.
Clubs can receive a development fee for young players who leave at the end of their before age 24 but it is small compared to the transfer fees received before Bosman which used to keep lower league football teams in Scotland in business for the next season.
Sorry about going slightly off track in my topic.
Footymad Forums offer you the chance to interact and discuss all things football with fellow fans from around the world, and share your views on footballing issues from the latest, breaking transfer rumours to the state of the game at international level and everything in between.
Whether your team is battling it out for the Premier League title or struggling for League survival, there's a forum for you!
Gooners, Mackems, Tractor Boys - you're all welcome, please just remember to respect the opinions of others.
Click here for a full list of the hundreds of forums available to you
The forums are free to join, although you must play fair and abide by the rules explained here, otherwise your ability to post may be temporarily or permanently revoked.
So what are you waiting for? Register now and join the debate!
(these forums are not actively moderated, so if you wish to report any comment made by another member please report it.)
Posting Permissions
Reply With Quote