Another Emergency Share Issue to keep Barnsley FC afloat

[SBRed48]

On 3 March the Hong Kong Registry recorded a further £2.1 million of shares being issued to keep the club afloat until the end of the season to add to the £1 million and £3.2 million million already issued this financial year. It is an indication of the desperate hand to mouth dire state Barnsley FC finances are in and further confirms the promotion sh1t or bust position the club is in financially.

From BBS Accountant's figures (thanks for their research) it looks as if another New York hedge fund manager, Joshua Samuelson, has chalked fq on the venture leaving only JAQ's husband Matthew Edmonds left from the original "Investor Group". Parekh looks as if he has bought Samuelson's shares. The resultant ownership structure has also changed marginally in other cases because Lee and PMG have not bought their full allocation of shares thus marginally diluting their holdings and marginally increasing others. The ownership structure is now--

A Shares

Parekh 35.88% (up from 30.25%)
Edmonds (JAQ) Hedge Fund 6.11% (up from 6.0%)
Lee 30.6% (down from 31.25%)
Conway/ Hung PMG 7.05% (down from 7.5%)

B Shares

Crynes 20.36% (up from 20%)



Of this latest £2.1 million Emergency Share sale people have bought shares as follows---
Parekh £846K
Lee £552K
Crynes £480K
Edmonds (JAQ) £144K
Conway/ Hung PMG £85K

This latest share issue should get the club through to the end of this season but another season of Third Division income with debts to pay would create "difficulties"

# Promotion SB

[Arblasterfromthepast]

On 3 March the Hong Kong Registry recorded a further £2.1 million of shares being issued to keep the club afloat until the end of the season to add to the £1 million and £3.2 million million already issued this financial year. It is an indication of the desperate hand to mouth dire state Barnsley FC finances are in and further confirms the promotion sh1t or bust position the club is in financially.

From BBS Accountant's figures (thanks for their research) it looks as if another New York hedge fund manager, Joshua Samuelson, has chalked fq on the venture leaving only JAQ's husband Matthew Edmonds left from the original "Investor Group". Parekh looks as if he has bought Samuelson's shares. The resultant ownership structure has also changed marginally in other cases because Lee and PMG have not bought their full allocation of shares thus marginally diluting their holdings and marginally increasing others. The ownership structure is now--

A Shares

Parekh 35.88% (up from 30.25%)
Edmonds (JAQ) Hedge Fund 6.11% (up from 6.0%)
Lee 30.6% (down from 31.25%)
Conway/ Hung PMG 7.05% (down from 7.5%)

B Shares

Crynes 20.36% (up from 20%)



Of this latest £2.1 million Emergency Share sale people have bought shares as follows---
Parekh £846K
Lee £552K
Crynes £480K
Edmonds (JAQ) £144K
Conway/ Hung PMG £85K

This latest share issue should get the club through to the end of this season but another season of Third Division income with debts to pay would create "difficulties"

# Promotion SB

I've yet to be convinced that promotion would sort the financial issues out SB. The extra money will be required to stay up.

[Shadrack the Red]

Reading this makes me think thank goodness it is not Conway who is currently steering our ship , I put a lot of this being down to him & I dread to think what course of action he would be taking to sort it out , at least the current stewards fill me with reasonable confidence & have the club & fans at heart . I do not think that promotion is a sh-t or bust scenario but it would certainly help stem the tide should we make it .

[SBRed48]

At least we are rid of three of the four New York hedge fund managers who did not have the club's interests at heart, only their own financial bottom line.
Remember it was Conway who created a "SPAC" in New York, a Special Acquisition Company", used in America as a shell company to pitch to the money market, Dragons Den style. He pitched the idea of buying what he saw as undervalued European soccer clubs to buy and sell and use as a vehicle for player trading profits. A group of four hedge fund managers in New York bought into this, the "Investor Group", and made Conway their representative, backed up by Billy Beane for player trading. Matthew Edmonds, JAQ's husband, is the remaining one of these New York Hedge Fund managers. His main motive was making profit out of Barnsley FC so he must have had a remarkable transformation to now have the club's interests at heart rather than a focus on his company profits by following the lead of the other three hedge fund managers
Parekh is the one who is key to all this. He was part of the Consortium that found buying Barnsley from the Crynes on the cheap too good to be true and stood by as Conway wrecked the club. He has now put himself forward as the club's saviour so we shall look forward to the results-- Spectemur Agendo.

# Promotion SB

[animallittle3]

Interesting development and as SB has underlined the club's financial position is a massive concern .

Success on the field becomes even more important because clearly income streams need to be improved upon and it's extremely difficult on league one money .

In my opinion the respective shareholders will only continue to provide the funding in the short term , these continued Rights Issues are not a long term solution and are only a means to dampen the financial flames and do not extinguish it , that continues to smoulder .

The longer the club resides in league one then something will eventually give .

[Young_Nudger]

Reading all the shenanigans that’s going on at the club - Whoosh !!! - straight over mi head.
I haven’t a clue about shares.

But what I’ve seen at first hand and what I’ve read then all I can say is Barnsley is in a very very promising position.
It could be better if Neerav, JAQ and the Crynes owned all the shares.
But the main thing here is that the decision making POWER is with Neerav and JAQ - and this is supported by the brilliance of James.
A football club is only as good as its directors.
Everything on and off the field starts with the directors.

[perkytyke]

After reading SB’s post nudge, HOW on earth do you see this as a Very, Very promising position?
People are selling shares to keep the club afloat! We are lucky that the others have bought up the shares, however if we don’t go up and more money needs to go in, it won’t come out of their pockets again, it will come from prospective mass player sales.
If that doesn’t materialise then we could be the next Bury fc…….

[SBRed48]

Just as a correction Perks the owners are not selling shares, they are buying further equity (shares) in Barnsley FC, shares which can be later sold to get the money back.

The assets of Barnsley FC are mainly the ground, the surrounding land, players/ coaching staff etc who have a value to other clubs, and the income received during the year. Lets say this totals £30 million ( an example, not fact). Barnsley FC can issue shares based on these assets to existing owners as a "Rights Issue" based on the proportion of shares they already own and the existing owners increase their share of the assets of the club. The individual owner can, at any time, sell their share back to the club or other shareholder, or claim money back for the shares should the club be sold. There are rules within this but what it basically means is that the investment made is not a gift never to be seen again but further shares in the club's assets.

So far this season the following have bought extra shares to the value of--

Parekh £2,026,600
Lee £1,864,500
Crynes £1,320,000
Conway/ Hung £400,400
Edmonds (JAQ's husband) £368,500
Former Shareholders now left £327,500

It would be a stretch to imagine Lee, Conway and Hung have put in a total of £2,264,900 this year (more than Parekh) without the anticipation of getting it back, and more, in the near future.

Nudge may put his hands over his ears and go "La la, La la..." but at some point it will be pay back time.

[perkytyke]

Thanks for explaining SB, I don't fully understand it all to be honest, I was going on the someone has to sell for further shares to be acquired premise? For example "Parekh looks as if he has bought Samuelson's shares"
Whatever it is? It certainly isn't "Very, Very promising"

[animallittle3]

I can't help thinking that the club have missed a trick here with the Rights Issues .

Why on earth weren't the issue of these new shares not offered to the supporters of this club ?

At least 15% of the club spread across the support could and in my opinion should be owned by the fans .

This would sit nicely with the " Community Club " and " Our Town Our Club " narrative that's presented these days .

Amongst that 15% a representative could be appointed through a Shareholders ballot and join the board , this could be done in two year cycles with an election taking place to demonstrate democracy and to ensure that those elected are indeed the fans true representative and not a paper tiger .

I wonder why this hasn't got rolled out ?