At one time it seemed as if almost every club was keen to float and sell shares, even glamorous ones. It was seen as a way of raising money, a mark of prestige and, in some cases, a way of involving fans. In all about 50 clubs have floated since the 1990s when television income started to pick up.
At one time it seemed as if almost every club was keen to float and sell shares, even glamorous ones. It was seen as a way of raising money, a mark of prestige and, in some cases, a way of involving fans. In all about 50 clubs have floated since the 1990s when television income started to pick up.
Today only a handful remain. Millwall, Preston North End, Tottenham Hotspur and Watford are on the second tier Alternative Investment Market. Arsenal on the ISDX smaller companies market. Manchester United was taken private in 2005 but refloated in the United States in 2012 but with non-voting shares. Celtic and Rangers are also listed.
Liquidity is an issue. With major shareholders holding most of the stock shares in clubs can be difficult to buy and sell. This is a major reason why Arsenal’s Fanshare scheme is to be wound down. The scheme was established as a way for fans to own a stake in the club, but it only holds 116 shares. Majority owner Stan Kroenke holds 41,600 with another 18,700 owned by Russian billionaire Alisher Usmanov. There are less than 2,000 other shares available.
Winding up the scheme will result in an exit fee of £50 being imposed on each member. It’s clearly not an effective way to involve fans.