YFC Posted January 13, 2013 Report Share Posted January 13, 2013 We have been making a huge effort lately to engage new fans and spark some life back into the club. This appears to be more than what the club is doing and has got me thinking about the club's management and ownership model. Currently Melbourne Heart is privately owned by a consortium of investors led by Peter Sidwell. As members of the club we are unable to vote-in board members, are unaware of the true financial position of the club and are really season ticket holders rather than members. I feel that if the club is to survive in the long run, we must have established a community ownership model. This is where the club belongs to the members, where PAYING members are eligible to vote for board members and where management is responsible to the members, not the investors. This club would no longer be an investment owned by businessman, but a football club owned by the members. We must not be vulnerable to the Clive Palmer's and the FFA when they decide to pull the pin on another failed franchise. We are the last of the expansion clubs in the firing line and would hate for us to become non-existent. Implementing such an initiative is difficult and would have to come with strong support from our members. Thoughts?? Also note I repeat the word members a fair bit as a community ownership model requires PAYING MEMBERS, who love the club, not the occasional rock up when the weather is fine fans that we seem to have. Quote Link to comment Share on other sites More sharing options...
Huzie Posted January 13, 2013 Report Share Posted January 13, 2013 At the last fan forum it was said that if we break even this year, it's possible to do it next season. Quote Link to comment Share on other sites More sharing options...
mus-28 Posted January 13, 2013 Report Share Posted January 13, 2013 I'd be willing to invest on the proviso I get to tear Hoffman's contract up, piss on it, put it in a bag along with some dog shit, douse it in petrol and set it alight on his parents doorstep. Quote Link to comment Share on other sites More sharing options...
jw1739 Posted January 13, 2013 Report Share Posted January 13, 2013 A survey was done on this either in Season 1 or Season 2 - I can't remember which. All I've heard is that the Board was 'surprised by the level of interest shown.' Don't recall ever seeing any formal results of the survey released. NQF were trying to come up with this model but the plug was pulled on them before they really had time to bring it to fruition. It's also been talked about for WSW. I suspect FFA is not very keen on the idea. They would find it harder to bully a club owned even partly owned by its supporters. Quote Link to comment Share on other sites More sharing options...
Melburnian Posted January 13, 2013 Report Share Posted January 13, 2013 We first need to build up our supporter base before this becomes viable. My guess is in season 1 they assumed they would have a lot more supporters than they currently have. This is a long way off even if it is ideal. Build the club first. Quote Link to comment Share on other sites More sharing options...
kontra.11 Posted January 13, 2013 Report Share Posted January 13, 2013 Judging by this forum people would be demanding their money back after every loss. A club is more than results.. We need to realise this. Quote Link to comment Share on other sites More sharing options...
pbreathing Posted January 13, 2013 Report Share Posted January 13, 2013 (edited) I'd be willing to invest on the proviso I get to tear Hoffman's contract up, piss on it, put it in a bag along with some dog shit, douse it in petrol and set it alight on his parents doorstep. Exhibit A: Why fans are not always the best people to be calling the shots in the boardroom. Edited January 13, 2013 by pbreathing 4 Quote Link to comment Share on other sites More sharing options...
belaguttman Posted January 13, 2013 Report Share Posted January 13, 2013 I'm happy to do it, but can everyone else afford maybe $1000-$5000 a year? Quote Link to comment Share on other sites More sharing options...
Huzie Posted January 13, 2013 Report Share Posted January 13, 2013 I'm happy to do it, but can everyone else afford maybe $1000-$5000 a year? Iirc most people on the survey picked $500-1k, there is a topic on this already. Quote Link to comment Share on other sites More sharing options...
YFC Posted January 14, 2013 Author Report Share Posted January 14, 2013 I'd be willing to invest on the proviso I get to tear Hoffman's contract up, piss on it, put it in a bag along with some dog shit, douse it in petrol and set it alight on his parents doorstep. Exhibit A: Why fans are not always the best people to be calling the shots in the boardroom. Fans won't be calling the shots, members will vote for the board members who make the decisions. Quote Link to comment Share on other sites More sharing options...
HEARTinator Posted January 14, 2013 Report Share Posted January 14, 2013 If the club is in a self sustaining mode, that is it has enough income (sponsorship, etc) to cover ongoing expenses (wages, ground rental, etc), then the current board members may wish to cash in their inital investment and allow additional investors. Let's say that the value of our self sustaining club is around $5M (plucked that out of thin air for this purpose), then 5,000 members chipping in $1000 each could buy Melbourn HeartFC Inc. The initial investment could grow in value as the club got more sponsors and sold players for more $$$$ (Rogic is reported to be attracting aroud $700k) so that the extra cash could be reinvested in the club (better facilities, etc) or handed back to members in the form of a dividend. When will this happen? Quote Link to comment Share on other sites More sharing options...
Tranerz21 Posted January 14, 2013 Report Share Posted January 14, 2013 Could we follow a model like the Green Bay Packers in the NFL? Green Bay Packers, Inc., has been a publicly owned, nonprofit corporation since Aug. 18, 1923, when original articles of incorporation were filed with Wisconsin’s secretary of state. One of the more remarkable business stories in American history, the Green Bay Packers organization has been kept viable by its shareholders — its unselfish fans. Even more incredible, the Packers have survived during the current era, permeated by free agency and the NFL salary cap. Fans have supported the team financially through five stock sales: 1923, 1935, 1950, 1997 and 2011. The Green Bay Packers’ fifth stock offering, which ended Feb. 29, 2012, was a tremendous success with the organization adding more than 250,000 new shareholders. For the first time in a Packers stock offering, international sales in Canada were issued for a short time and accounted for approximately 2,000 shares. While exact totals are not available at this time, more than 268,000 shares were sold during the offering that began Dec. 6, 2011. Prior to the 2011 sale, a total of 4,750,937 shares were owned by 112,158 stockholders. All proceeds from the most recent offering are going toward the expansion of Lambeau Field, a $143 million project that includes approximately 6,700 seats, new HD video boards, a new sound system and two new gates. The new sound system was in place for the 2011 season, the new video boards and one gate were launched in 2012 and the new seats and second gate will debut for the 2013 season. To protect against someone taking control of the team, the articles of incorporation prohibit any person from owning more than 200,000 shares. The corporation is governed by a board of directors and a seven member executive committee. Shareholders do not receive any dividend on the initial investment. The shares were $250 each 1 Quote Link to comment Share on other sites More sharing options...
Bobbobbobmarley Posted January 15, 2013 Report Share Posted January 15, 2013 Sounds Promising. Quote Link to comment Share on other sites More sharing options...
Tommykins Posted January 15, 2013 Report Share Posted January 15, 2013 I'd happily invest as I'd love to be able to support the club in anyway possible. Plus we could be an entitled angry mob, instead of just the angry mob we are now. Quote Link to comment Share on other sites More sharing options...
Jimmy Posted January 15, 2013 Report Share Posted January 15, 2013 We'd just sack everyone if we had any power. Hope the fans get more of a say but not too much. Quote Link to comment Share on other sites More sharing options...
Shahanga Posted January 15, 2013 Report Share Posted January 15, 2013 I think the best model for a football club is member owned,(Melbourne Heart as it currently exists has no members - it has season ticket holders, it's only FFA marketing bull to use the term "members" and in my book completely dishonest and misleading). Anyway as JW puts it though the problem is the cost, if members own the club, members own the debt and the large annual losses. So the club stuffs up the season financially and drops $3M. The club has virtually no assets, no track record, so who would lend them money- they'd have to go back to the members for more cash just to pay their bills. Even if we all harden up to the potentially large bills that might come, it also seems pretty clear that the FFA don't want clubs like this. For reasons best known to themselves they think that dealing with the Nathan Tinklers and Clive Palmers is preferable. ps fans wouldn't run the club though- it'd be just like AFL clubs or most NRL clubs - members elect the board and thats all. Quote Link to comment Share on other sites More sharing options...
Bobbobbobmarley Posted January 15, 2013 Report Share Posted January 15, 2013 Could we follow a model like the Green Bay Packers in the NFL? Green Bay Packers, Inc., has been a publicly owned, nonprofit corporation since Aug. 18, 1923, when original articles of incorporation were filed with Wisconsin’s secretary of state. One of the more remarkable business stories in American history, the Green Bay Packers organization has been kept viable by its shareholders — its unselfish fans. Even more incredible, the Packers have survived during the current era, permeated by free agency and the NFL salary cap. Fans have supported the team financially through five stock sales: 1923, 1935, 1950, 1997 and 2011. The Green Bay Packers’ fifth stock offering, which ended Feb. 29, 2012, was a tremendous success with the organization adding more than 250,000 new shareholders. For the first time in a Packers stock offering, international sales in Canada were issued for a short time and accounted for approximately 2,000 shares. While exact totals are not available at this time, more than 268,000 shares were sold during the offering that began Dec. 6, 2011. Prior to the 2011 sale, a total of 4,750,937 shares were owned by 112,158 stockholders. All proceeds from the most recent offering are going toward the expansion of Lambeau Field, a $143 million project that includes approximately 6,700 seats, new HD video boards, a new sound system and two new gates. The new sound system was in place for the 2011 season, the new video boards and one gate were launched in 2012 and the new seats and second gate will debut for the 2013 season. To protect against someone taking control of the team, the articles of incorporation prohibit any person from owning more than 200,000 shares. The corporation is governed by a board of directors and a seven member executive committee. Shareholders do not receive any dividend on the initial investment. The shares were $250 each Not enough members Quote Link to comment Share on other sites More sharing options...
Blackmissionary Posted January 16, 2013 Report Share Posted January 16, 2013 Could we follow a model like the Green Bay Packers in the NFL? Maybe you can try to find a more realistic example to model this approach on? Packers have something like a 30 year waiting list for season tickets, with more people on that list than seats in the stadium. Quote Link to comment Share on other sites More sharing options...
Melburnian Posted January 16, 2013 Report Share Posted January 16, 2013 Could we follow a model like the Green Bay Packers in the NFL? Maybe you can try to find a more realistic example to model this approach on? Packers have something like a 30 year waiting list for season tickets, with more people on that list than seats in the stadium. The Cheeseheads have a huge amount of support. I think a Community model will need to be drastically different and may be a few years away. Ideally we want an AFL model of members actually being members who vote on boards etc. That is a long while away I feel. Quote Link to comment Share on other sites More sharing options...
FB. Posted January 16, 2013 Report Share Posted January 16, 2013 I'm happy to do it, but can everyone else afford maybe $1000-$5000 a year? From what I've heard of the proposal for future ownership, it would entail the board offering up an initial parcel of shares which fans would buy into. This parcel wold enable a fan rep to sit on the board of the club with access to board meetings and discussion on the future direction of the club. It would not be total fan ownership and the financial burden for losses would still be held by the major investors. So in answer to your question, from what I understand it would be a once off payment, and yes I would be willing to tip in a $1000 if it came to it for that privilege (would probably tip in more). btw already a thread on this, mods please merge; Quote Link to comment Share on other sites More sharing options...
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