Community shares are a way of raising finance by offering shares, but in a secure, co-operative legal form. As opposed to ordinary shares in ordinary companies, they seek investment from people that are most interested in the long term success of the Club as a community asset – with the added bonus that it is cost effective way that avoids the red tape that a private Company would face. By giving your supporters and community the chance to invest in the Club it strengthens their connection with it, and as we have seen with FC United it can open you up to significant grant funding opportunities.
It’s the same model that helped Portsmouth FC supporters take control of their club, Supporter Owned Wrexham build a new shop and offices at the Racecourse Ground, and outside of sport, more than 300 pubs and small shops which are now owned by their customers.
The guidance prepared with the support of the Community Shares Unit explains in more detail what community shares are, how they fit and what the benefits are over other finance raising options. It also gives practical advice on the steps required to buy a club using community shares and engage with the community to get the best out of an offer.
For those with a little less time please watch the animation prepared with the help of First10