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South Shields Football Club

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South Shields FC is striving to reach the Football League and progress numerous community programmes.

104%
 - 
Funded 20 Nov 2021
£200,000 target
£211,075 from 476 investors
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Business overview

Location South Shields, United Kingdom
Social media
Website www.southshieldsfc.co.uk
Sectors Travel, Leisure & Sport Mixed Digital/Non-Digital B2C
Company number 12291987
Incorporation date 1 Dec 2019
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Investment summary

Type Equity
Valuation (pre-money) £2.9M
Equity offered 6.78%
Tax relief

EIS

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Business highlights

  • South Shields FC has created a group structure to support growth
  • The Club has invested wisely in infrastructure and its people
  • The Clubs Academies and Foundation are increasingly recognised
  • Investment is continuing with the building of our landmark stand
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Key features

  • Secondary Market
  • Nominee investment min. £12.50 +

Idea

Introduction

In 2020, South Shields Football Club offered shares for the first time to raise the funds it needed to realise its full potential, and expand upon the huge impact it had already made on its community. It was an extremely successful raise with over 1,000 new investors.

The club had a fantastic legacy between 1919 and 1930, where it thrived in the Football League. In 2015 a new, success laden period dawned, with 3 promotions in 4 years and a 5th denied when the FA declared the 2019-20 season null & void.

In parallel, it has been nurturing local talent in our 2 successful academies for young players from 11 to 19 years of age.

The COVID-19 lockdowns created many challenges, but the club feels the experience has made it stronger, and more determined & focused more than ever before to achieve its long-term goals.

The Club is committed to becoming community-owned, and feels the time is right to offer this 2nd round of share ownership. By participating you can help it toward this objective.

Substantial accomplishments to date

2013 - Club is left homeless after its lease on Filtrona Park expires.

2015 - Geoff Thompson takes over as chairman and brings club back to the renamed Mariners Park (now known as 1st Cloud Arena).

2016 - Northern League Division Two title is won, with Lee Picton and Graham Fenton taking over as joint managers.

2017 - Club enjoys its finest season, winning the FA Vase, Northern League, Durham Challenge Cup and Northern League Cup. More than 15,000 Shields fans make trip to Wembley for FA Vase final win over Cleethorpes Town.

2018 - Third consecutive league title and promotion is secured as Shields win the Northern Premier League North Division.

2020 – Shields lead the Northern Premier League Premier Division by 12 points when season is null & voided by the FA.

2020 – Over 1,000 new shareholders invest in the Club

2021 – Lee Picton is appointed as Chief Executive Officer of the Club.

2021 – Season is once again curtailed by the FA

2021 – Playing staff go full-time for the 2021-22 season

Monetisation strategy

The corporate body of South Shields Football Club comprises a holding company, South Shields Football Club Group, and two distinct wholly-owned operating subsidiaries in which it has invested, SSFC Stadium Company Limited and South Shields Football Club 1888 Limited - please see the attached structure chart for further details.

SSFC Stadium Company Limited was established to hold the land, buildings, and assets of the football club at its stadium now known as the 1st Cloud Arena. It earns revenue through renting this facility to South Shields Football Club 1888 Limited, and a 25 year lease exists which was signed in July 2015. The rental value since 1st July 2021 has been £85k per annum.

South Shields Football Club 1888 Limited is the main operating company of the football club, and generates all of the external revenues through a number of different sources:

1. Match-day Income

2. Food & Drink

3. Sponsorships

4. Merchandise

5. Academies

6. Other Income

Use of proceeds

In 2020, the Club raised £379,363, well in excess of its target. This has enabled the club to lay new pathways, and to replace the perimeter fencing. In addition, the club was able to install new covered stands at the east and west ends of the ground. The balance of the raise, as proposed, is being used to support the Club’s working capital.

This 2nd round of fundraise has a target of a further £200,000, which will be used for working capital requirements.

In addition to the improvements made this year, the Chairman, Geoff Thompson, is funding the build of an exciting new stand, through another of his companies, Stella Property Investments Limited. This will give an enhanced spectator experience, and also gives a huge commercial opportunity, as the stand will have its own extended bar/function room, food offering, and merchandise facilities.

A key decision in seeking the fundraise was to make the investment in working capital for short-term needs in order to achieve longer term objectives.

Key Information

Loan Disclosure

The company has a bounce back loan of £50,000 taken out from May for 72 months, after the 1st year. This loan is Interest free for the first 12 months with an interest rate per year of 2.5% thereafter.

There is a director's loan of £73,571 that will not be repaid till the club is profitable

Funds raised as part of this round will not be used to repay outstanding debt.

Structure

The company has 2 wholly owned subsidiaries, South Shields Football Club 1888 Limited and SSFC Stadium Company Limited

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for South Shields Football Club has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 29 September 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £2,879,363

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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