Barnsley FC New Ownership Structure

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05-12-2022, 06:20 PM
SBRed48

Barnsley FC New Ownership Structure

Thanks to Exile on BBS who has kept an eye on the Hong Kong Registry where the overall holding company of Barnsley FC called Barnsley Investment Company publically publishes any changes. The results of the recent £3.2 million share issue and who bought parts of the dismantled "Investor Group" have now been published.

Neerav Parekh has bought the 9% holding of the New York Hedge Fund manager Zach Schrieber to take Parekh's ownership share from 21.25% to 30.25%

Matthew Edmonds, husband of Julie Quay, has bought the 2.75% holding of the New York Hedge Fund manager Lee Pollock to take JAQ's husband's share from 3.25% to 6%

No other shares changed hands.

The resultant ownership structure is now---

Chien Lee 31.25%
Neerav Parekh 30.25%
Crynes 20%
Conway/ Hung 7.5%
Matthew Edmonds/ JAQ 6%
Joshua Samuelson 5%

The share issue of £3.2 million was taken up by all these investors in proportion to the percentage they owned eg Chien Lee bought all his entitlement of 31.25% additional shares (which he can later sell) costing him just over a million pounds.

The "Investor group" no longer exists. Julie Quay speaks on behalf of the 6% her husband owns. She is, of course part of the majority group on the Board of Parekh, Crynes, Edmondson and Samuelson totalling 61.25% with the Lee/ Conway/ Hung side still there with 38.75%.

The money gained from the sale of £3.2 million additional sales
of shares runs out in January.
05-12-2022, 06:45 PM
Young_Nudger

Thanks for posting SB.
This is big big news - and great news for the club.

We now have 2 parties that have total control (50.25%) of the club - Neerav and the Crynes.
Directors with money coupled with directors that have been there a long while.
It’s an ideal combination.

And although it’s good to have JAQ onboard (as I understood it she once held the balance of power) it’s better now that Neerav and James can guide the club forward.
Fabulous news !!!
05-12-2022, 06:48 PM
animallittle3

Thanks for that SB , Lee and PMG also took up the option to purchase those shares apparently .

16.000 were made available @ 20p each .

Clearly January is going to be interesting and given the last share issue was costed @ 20p each I wonder if it's crossed their minds to offer fans a chance to purchase a stake .

I can't see why not , community club and all that ...... Cough cough .
05-12-2022, 06:49 PM
animallittle3

Quote:

Originally Posted by Young_Nudger

Thanks for posting SB.
This is big big news - and great news for the club.

We now have 2 parties that have total control (50.25%) of the club - Neerav and the Crynes.
Directors with money coupled with directors that have been there a long while.
It’s an ideal combination.

And although it’s good to have JAQ onboard (as I understood it she once held the balance of power) it’s better now that Neerav and James can guide the club forward.
Fabulous news !!!

Any thoughts on whose going to fund the club come January YN ?
05-12-2022, 10:02 PM
Young_Nudger

Quote:

Originally Posted by animallittle3

Any thoughts on who’s going to fund the club come January YN ?

Im a bit confused now after reading the latest from Exile on the BBS.

Apparently there are A shares and B shares.
The Crynes hold the B shares at 20%.
My question would be - does the B shares hold the same voting powers as the A shares ???
If they do - then that’s great.
If they don’t - then Neerav is still reliant on JAQ et al for support.
Which I’m sure Neerav would get.
But IMO - Neerav should have total control of the club with support and guidance from James.

This is vi.tal for the future of the club.
Basically because there are two different business models at the club.
1) Chien Lee / Conway - make money by developing and selling young players - evidently for a quick buck.

2) Neerav / Cryne / JAQ - a more traditional way of running a club eg invest and build the club steadily.
06-12-2022, 07:51 AM
SBRed48

Quote:

Originally Posted by Young_Nudger

Im a bit confused now after reading the latest from Exile on the BBS.

Apparently there are A shares and B shares.
The Crynes hold the B shares at 20%.
My question would be - does the B shares hold the same voting powers as the A shares ???
If they do - then that’s great.
If they don’t - then Neerav is still reliant on JAQ et al for support.
Which I’m sure Neerav would get.
But IMO - Neerav should have total control of the club with support and guidance from James.

This is vi.tal for the future of the club.
Basically because there are two different business models at the club.
1) Chien Lee / Conway - make money by developing and selling young players - evidently for a quick buck.

2) Neerav / Cryne / JAQ - a more traditional way of running a club eg invest and build the club steadily.

Class A shares do hold more voting rights than B shares but the actual difference in the value of voting rights does vary from company to company. Class A shares can be more easily sold and are generally owned by those taking an active part in the running of the company. Only the Crynes (20%) have Class B share). Details are not readily available as to the actual value of Class B voting rights at Barnsley but you can bet your bottom dollar that if it meant Lee/ Conway/ Hung were still in control we would know about it.
Of the 80% Class A voting shares alone Parekh/ Edmondson and Samuelson own 41.25% and Lee/ Hung/ Conway 38.75% so have the majority on these alone. Whatever voting rights are attached to the Cryne's Class B shares would only serve to increase this majority

You still seem to assert that Parekh and the Hedge Fund managers Edmondson (JAQ's husband) and Samuelson have invested their own money into the club. Please note that--

1) They have not yet purchased the club using their own money. They agreed to pay for the purchase from the Crynes in instalments. Only one instalment of £750,000 has been paid and that money was taken from the club accounts, paid to the owners by creative accounting as a "performance bonus" to themselves. Cryne then had to take the matter to Court as the remaining instalments were not paid. Jean Cryne has now withdrawn the Court action and deferred the payments to next summer to help the club through its cash crisis. The remaining payments are still owed.

2) Any further money put into the club has been via setting up additional share issues, bought by the existing owners in proportion to their existing holdings. These shares can be re-sold and entitle them to first call on the money raised if the club is sold or goes into financial difficulties. In you call this" investment" then Chien Lee has been the biggest "investor" recently taking up all his allocation in the £1 million and £3.2 million share issues.

It will be interesting to see the strategy to raise yet more money in January.
06-12-2022, 08:22 AM
SBRed48

Quote:

Originally Posted by animallittle3

Thanks for that SB , Lee and PMG also took up the option to purchase those shares apparently .

16.000 were made available @ 20p each .

Clearly January is going to be interesting and given the last share issue was costed @ 20p each I wonder if it's crossed their minds to offer fans a chance to purchase a stake .

I can't see why not , community club and all that ...... Cough cough .

Unfortunately one of the "perks" of already owning shares is that you have the "right" to have first option on buying the shares in a new share issue in proportion to what you already own.

As a gesture towards community ownership they may well be able to forgo that right and ask fans to invest but I do not know the legalities of that.

Clearly there is some future financial advantage to themselves if the likes of Lee, Conway and Hung are buying up all the shares they can. I doubt they are doing it for the good of Barnsley FC and the community.
06-12-2022, 04:34 PM
animallittle3

Quote:

Originally Posted by SBRed48

Unfortunately one of the "perks" of already owning shares is that you have the "right" to have first option on buying the shares in a new share issue in proportion to what you already own.

As a gesture towards community ownership they may well be able to forgo that right and ask fans to invest but I do not know the legalities of that.

Clearly there is some future financial advantage to themselves if the likes of Lee, Conway and Hung are buying up all the shares they can. I doubt they are doing it for the good of Barnsley FC and the community.

Me neither SB but they can put me darn for a quids worth if any became available .

In keeping with recent tradition I wouldn't be using my own money to purchase my five shares of course , this is business so I'll be raiding my grand kids piggy bank , I'll keep any subsequent profit of course , nothing crazy going on here .

Given the above I reckon I would fit in perfectly as a stakeholder at the club and I'd be pushing for the sale of Andersen and Duff in January to reinforce my credentials safe in the knowledge that the best transfer window in our history will follow .

The Rosters Fine .