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What is the Loan Note scheme?
The BRSS Loan Note scheme has been set up to enable BRSS to raise a sum of money specifically for the purpose of buying a controlling share interest in Bromsgrove Rovers FC. Supporters will be offered the chance to subscribe to the scheme in multiples of £100.
What happens if I can't afford £100 or more?
Two or more people can club together and make a joint loan to the Society, although only one of those people can be registered as being the lender of record, and the agreement between those people will be a private one for which the Society will take no responsibility. Alternatively arrangements can be set up with the Society to pay small amounts monthly by standing order until enough money is accrued to purchase a Loan Note.
AND
all supporters can become members of the Society by paying the annual membership fee (£5). In addition the Society will gladly accept donations of any size. All administration costs are being kept to a minimum and we hope the Society membership fees, and other fund raising schemes will easily cover them. This, we hope, will enable a substantial proportion of cash donations to go into the Society’s funds alongside the Loan Fund. However, none of the rights of members can be given to those who make donations but are not members of the Society.
What benefits do I get for my loan?
The main benefit you get is to play your part to enable the supporters to invest in their club and effectively be significant players in the future of Bromsgrove Rovers.
What additional benefits do I get for lending more money?
Every extra £100 will take us nearer to our goal of investing in Bromsgrove Rovers Football Club and securing a lasting voice for supporters in the running of the club.
What will happen to the money that I lend?
Initially, the money will be placed on deposit in a bank account set up specifically for the Loan Note scheme and will be used only for the purpose of the scheme to acquire additional shares in Bromsgrove Rovers Football Club, pending a vote of members on how the Loan Fund should be spent.
Will I get a say in how the Loan Fund will be spent?
Yes. If the Society Board negotiates an opportunity to purchase a controlling share interest in Bromsgrove Rovers Football Club, the Society will seek permission of the Loan Note holders to proceed. The proposed deal will be put to a vote of all Loan Note holders for approval before any money is actually committed.
Do I need to be a member of the Society to be a Note holder?
Yes. Noteholders are required to be members of the Society. In the event that a Noteholder's membership of the Society ceases, such Noteholder shall have no voting rights.
If the Society buys shares in the club, does that mean that Noteholders each own shares in the club?
No. The shares would be owned collectively by the Society for the benefit of all its members who pay their annual membership fee. As a Loan Fund Noteholder you will also be a member of the Society. The Loan that you have made will not give you any greater ownership of Bromsgrove Rovers Football Club than any other member of the Society.
How will I have a say in the running of Bromsgrove Rovers Football Club and who will represent the supporters at BRFC Board level?
The Society has a Board that manages its activities. The Society Board are elected by the members in general meeting in accordance with the rules. In the event that the Society buys a controlling interest in Bromsgrove Rovers Football club these people will represent the interests of the members of the Society as conveyed to them at:
(i) Society Board meetings
(ii) General meetings of the members of the Society
If Bromsgrove Rovers are successful in future years and the Society’s stake becomes worth a lot of money, could we sell our shares and distribute the profits?
It would be possible for the Society to sell some or all of the shares it buys in Bromsgrove Rovers Football Club, although this would be contrary to the principles of the supporters' ownership of the club that the Society is trying to establish. If the entire shareholding were sold, the cash received by the Society would be used to repay Loan Note holders and any surplus would be distributed to Loan Note holders in proportion to their holding in the scheme.
Will I be able to get my money back once invested in the scheme?
An opportunity to redeem Loan Notes is available annually on receipt of notice in accordance with the terms and conditions of the scheme. Loan note redemption will be at the discretion of the Society Board and dependant on funds being available. EG: If the Society Board were in negotiations to purchase the club then funds would not be available for redemption purposes at that time. Once the funds generated by the scheme have been invested in BRFC there may be procedures in the future whereby the loans may be repaid. It should be noted that no interest will be paid on the Loan Notes.
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