By Paul Nicholson
December 30 – Scottish Championship club Hibernian is giving the opportunity to its fans to become 51% owners with a new share issue. The club also announced that as part of the restructuring it is now free of bank debt.
Hibernian, like Edinburgh neighbours Heart of Midlothian, have battled hard to keep finances under control while retaining top tier status. Both of the capital’s clubs were relegated from the Scottish Premier League last season and met Glasgow’s Rangers working its way back to the SPL having been dropped three divisions for breaking the leagues financial regulations.
Hearts lead the Championship and are strong favourites for promotion with Rangers and Hibs following at a distance. Hibs beat a financially beleaguered and managerless Rangers 4-0 over Christmas.
It is important for Scottish football that all three clubs return to their former glory and, ultimately, the SPL as all three clubs would traditionally rank in the top five of best-supported clubs in the country.
The Hibernian offer will make available up to £2.5 million in new shares and will dilute the holding company’s shares to less than 50% of the enlarged share capital of the club.
The deal looks like a good one for fan investors as the clubs owns its Easter Road Stadium and its training centre. The properties are valued at £25 million. The Board said that a “fundamental” part of its strategy is for the club to own these assets.
All cash raised from the issue of new shares will stay within the club.
Hibs were carrying a bank debt with the Royal Bank of Scotland which has been released via a payment to the bank and a new loan issued to the club by the holding company.
Half of the £4.5 million debt will be turned into new shares while the remaining loans will be restructured as part of a new £5 million mortgage made available to the club by the holding company.
The financial restructuring and the opening up of ownership is a bold move by the club to unite all interests.
Club Chairman Rod Petrie said: “The environment of Scottish football is changing including a working group set up by the Scottish Government to look at supporter involvement with football clubs. After extensive consultations with supporters we have decided on the Hibernian Way, the right way forward for Hibernian Football Club.”
The ultimate success of the new structure will depend largely on the fans and the news comes with a rallying cry from former Hibernian playing legend Pat Stanton and manager Alan Stubbs to fans to get behind the club.
Hibs chief executive Leeann Dempster (pictured) added: “The Board’s plan is radical, a real first in Scottish football. I think it’s daring, exciting and we now need all supporters to rally behind the plan and take the Club forward on a united footing. The opportunity exists, and now it’s up to all of us to take it and make it work.
“Supporters should not lose sight of the fact that the one thing they can always do to support the Club in its ambitions is to come along to games and support the team – through buying Season Tickets, through walk-up and through buying merchandise from the club store.”
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