How Playershare Works

The scheme helps the club to attract players who would otherwise be beyond the Club’s financial reach. A major difference between Playershare and other recent fund-raising activities is that the funds are guaranteed to go towards the team, and for no other purpose. Shareholders can feel that they are aiding the team’s progress directly. It is also fun, and adds another dimension to supporting our local football team.

Playershare is set up as a limited company any funds provided to the club will be additional to the club’s own player budget. When the Club needs funds, the team manager will present a case to the Playershare Chairman, who will in turn discuss it with the other directors and members of the Operating Committee. In return for each tranche of funds provided, Playershare will either take a small percentage share of the proceeds from future transfer income from all members of the squad over an agreed period, or a percentage interest in an individual squad member – but not necessarily the new player.

By splitting the spending decision from the investment, we are able to be much more flexible in using the Playershare funds. For example, it might be in the interests of the club to add an experienced central defender to the squad on a loan basis. Playershare could make the funds available, and in return take an interest in any other player in the squad.

Funds may be made available for a wide range of purposes provided they are directly linked to strengthening the playing squad, including to pay the transfer fees of new players, to contribute to the wages of new players, or to fund a loan player where either the wages are higher than the budget will stand, or – as in the case of season 2002/03 – where injuries meant that additional players were required – often at very short notice.

Note that Playershare will not actually “buy” the players or own their contracts, neither will they appear as assets on our balance sheet. We will simply provide money to the club to fund specific players, under a contract, which guarantees a share of future sale revenues.

Example : The following example is for illustration purposes only and may be based on optimistic assumptions:

• The Scheme raises £100,000 and buys a 8% interest in three players (it also has an interest in the whole squad)
• One of the players fails to develop and is released on a free transfer at the end of his contract
• The second player signs a new 4 year deal to stay with AFC Bournemouth
• The Club sells the third player to a first division club for £250,000
• Playershare receives £20,000 as its share of the sale proceeds
• At least 75% of this profit must be re-invested with the club via new interest in players
• The remaining 25% (i.e. £5,000) could either be re-invested in the club, or paid as a dividend to shareholders. In the present state of the transfer market, the dividend route is unlikely.

Note that, in the event of a profitable sale, at least 75% of the Playershare money will immediately become available to the Club again for further player signings. As a result, the scheme will not significantly distort the Club’s decision-making when a sale opportunity arises.

The decision on which players to invest in is taken by the Playershare Operating Committee.

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