investment propoasal part 2

22 July 2013 07:09
FPS have their say

3. Benefits of the proposed investment. The main benefits of this investment are: (i) by far the most pressing and important benefit is on-going investment in our First Team Squad. The additional financial flexibility will enable the club management to attract, retain and develop key senior players and promising younger players. It will also allow the club to offer longer playing contracts with confidence as it is being funded by equity and not by unsustainable bank debt as used in the past by previous club owners. (ii) to support, grow and develop the current youth coaching and scouting system within the club. Under the direction of John Nelms, the plan is to expand our scouting system across Scotland and beyond, increase the number of youth coaches and the number and age ranges of DFC teams playing in the city. There are several excellent young players coming through into the senior squad this season, testament to the work already done, and we believe with more hard work, increased coaching resources, expanded scouting network, dietary and fitness improvements there is the potential to develop more of our own first team players. (iii) every fan of DFC knows that parts of the Dens Park Stadium are in a state of disrepair, and don't offer an ideal match day experience, plus our old main stand requires significant, and mainly unseen, investment. We believe in investing to improve the stadium for Dundee fans. We will have the financial flexibility to ensure measured improvements and essential maintenance are carried out on our stadium. Major unexpected structural issues, as has been experienced recently at Tannadice, can happen at any time and cash reserves are required for those unforeseen eventualities. 4. Clarification of the signed Heads of Terms In addition to the investment offer detailed fully above, the Heads of Terms recently signed contain significant added protection for the DFCSS and for the club which was agreed to by FPS. The main points in the agreed Heads of Terms are as follows: (i) DFCSS requested a pre-emption right over the FPS shares. This was agreed and if the shares are ever sold in future the DFCSS have 90 days to match any offer and retain control of the football club. (ii) FPS have agreed to allow DFCSS to have a veto over any borrowing by the club in excess of £50,000. This is specifically to avoid a repeat of the unfortunate situation where previous club owners borrowed in excess of £23 million from a bank and put the club's very existence in jeopardy. (iii) FPS agreed to DFCSS requests to veto any changes to the club's badge, colours, stadium location and name etc. Also DFCSS can veto the sale of the club and block any dividends or shareholder distributions. FPS have no problem agreeing to these requests as no plans are in place to change anything fundamental or indeed to sell or distribute anything. (iv) Two representatives from DFCSS will retain seats on the club Board.5. 3 year cash forecasts FPS have modeled a 3 year cash forecast which has been supplied to the DFCSS representatives. There are several outcomes which have been modeled as it is impossible to predict with any certainty what will happen over 3 full seasons with so many unknown factors. The model we shared with DFCSS was the version which assumed we won the First Division in the coming season. However the key point here is that the club is adequately funded under our proposal to survive several more years in the First Division if we do not gain the immediate promotion that we are hoping will be achieved. 6. Future partnerships with fans and local businesses and funding strategy. There is nothing to stop Dundee fans, fans organisations and local businesses co-investing in the club's shares along with FPS either now or in the future. FPS would welcome this if there is cash available and a willingness to invest in the club football from any of these parties. Our funding proposal is not exclusive and we will never privately or publicly criticize or undermine anyone who wants to help Dundee Football Club either financially or in any other way. If more capital is required by the club in future then FPS feels very strongly that it should be funded by equity and any planned expenditure should be funded in advance of being committed or spent. The football club's existence was put at grave risk in 2003 through excessive and unsustainable bank borrowing and in 2010 through unfunded financial commitmentsFPS want those situations to be avoided at all costs in the future. 7. Conclusion FPS only want one thing, to see a thriving and successful Dundee Football Club that is an integral and important part of the Dundee community. They wish to build upon the recent work done by the DFCSS and strengthen the club's foundations and see the club back playing in the highest league in Scottish football and competing for major trophies and entertaining fans. There are no guarantees in this game and FPS realize that financial investment does not guarantee football success. Every fan of this football club in particular will recognize that statement after the recent and troubled financial history of the Dundee Football Club. John Nelms will be flying to the UK on 6 August and will be coming to Dundee to meet any Dundee fans that have any specific questions for him. Details of times and venues for John's meetings in Dundee will be announced soon. FPS 22 July 2013.

Source: Dundee Mad