New Raith Rovers - FAQ

On 30th December 2005, a consortium of investors under the legal banner of New Raith Rovers came together to buy the majority stake in Raith Rovers from West City Developments.

1 So who owns what?
Ever since Raith Rovers Holding Company was formed in the early 90’s the club has been controlled by whoever has held the majority share in that company. This is what the New Raith Rovers consortium bought from West City Developments Ltd. This means the shareholders of Raith Rovers Holdings and Raith Rovers FC remain unaffected by this transaction.

Stark’s Park is a little different and a little more complicated. The stadium has a debt that is secured against it and this debt also requires a personal guarantee requested by the Allied Irish Bank as additional security. West City Developments, the company which legally own Stark’s Park, is now shared by four parties; John Sim has 51%, Mario Caira and Turnbull Hutton have retained 11% each in their own right and the New Raith Rovers consortium owns the remaining 27% with the personal guarantee placed by John Sim. The stadium debt will be serviced by the club continuing
to pay ground rental as before.

2 Who are the shareholders of New Raith Rovers Ltd?
Currently four major investors have at least £100,000 invested in the new company. John Sim owns 25.6% of the company, Turnbull Hutton and Mario Caira 24.8% each and the Raith Trust (on behalf of Reclaim the Rovers) 14.2%. Additionally a variety of independent shareholders own 10.6%.

3 As the shares are held in name by the Raith Trust, does that mean the Fan’s representative only represents the Trust?
No. The various parties involved in RtR all unanimously decided that the Trust was the best legal company to hold the shareholding on behalf of RtR.

4 Who are on the boards?
New Raith Rovers (and West City Developments) has David Sinton, Lord Elder, Turnbull Hutton, Mario Caira and Ali More.

Raith Rovers FC (and Raith Rovers Holdings Ltd) has Messrs Sinton, Hutton, Caira and More who are joined by Eric Drysdale and Peter Livingstone.

The option to add Directors still exists and will be examined over time as the requirements of the companies evolve.

5 I’m a bit confused - are New Raith Rovers and Reclaim the Rovers the same thing ?
No. Reclaim the Rovers (through the Trust) is just one investor in NRR. Back in June, RtR said it was working towards creating a consortium to buy the controlling interest in the club. NRR is that consortium including the other investors.

6 Is this a community buy-out then?
Yes, in as much as all the funds for the consortium have come from within the wider Raith Rovers community and all the investors have a strong affinity with Raith Rovers and the local area.
That means for the first time in many years, the ownership of the club is with people who have genuine reasons for owning a share in their local football club.

7 What do the supporters own?
The Reclaim the Rovers investment (held in name by the Raith Trust) is currently 14.2% of New Raith Rovers Ltd but new investors are being sought so this % will vary. At this point no other individual investor has over 30% and in order for anyone to own more than 40% the company articles have to be changed by a majority of the shareholders.

8 What happens to RtR?
RtR is now over and has been replaced by the Raith Forum, a grouping of representatives of the main Supporters Organisations.

The Forum will be responsible for arranging the election of the Supporters Representative and will also support the club through future fund-raising activities. In return for the funds raised, the Forum will be seeking shares to increase the fans’ shareholding in New Raith Rovers Ltd.

9 How will the ordinary fan get a say?
The supporters, represented by RtR investment, are legitimate shareholders in New Raith Rovers with a right to appoint a director to that board.

After a decision by representatives of all the supporters groups involved in RtR, namely the Raith Trust, Official Supporters Club, 200 Club, Jim McMillan Club and Fife’s Finest, Ali More will fill that position until the end of the season.

The Fan’s representative is answerable to the Raith Forum and over the coming weeks a method of involving the wider group of supporters in choosing the person to serve that function in future will be developed by the Forum.

In the meantime Ali can be contacted directly through email ali.more@raithroversfc.com or by mail or telephone (01592 263514) through the Stark’s Park office.

It's Done!

The deal to secure the future of Raith Rovers was concluded today. The New Raith Rovers consortium, of which ‘Reclaim the Rovers’ is a part, now owns the controlling interest in Raith Rovers and Stark’s Park.

The news brings to a successful conclusion 10 months of hard work for supporters in raising money and helping put together the deal.

The consortium has been a great example of everyone from within the Rovers community pulling together to bring about real change at the club.

However without the support of the major investors, both old and new, there would be no consortium.

John Sim was the main investor in the consortium but he increased his already significant stake when Alex Penman withdrew and without that support there simply would be no deal.

Mario Caira and Turnbull Hutton have also been important players in ensuring that a workable deal could be put in place.

Our elected representatives also deserve recognition for the massive difference that they have made to the campaign. Gordon Brown as the local MP has been absolutely central to the effort and his influence in bringing about the deal should not be underestimated. Our MSP Marilyn Livingstone has also put in a power of work on behalf of the campaign over the last few months.

The campaign has also benefited substantially from working in partnership with our local paper, the Fife Free Press, who have been superb in maintaining the profile of the campaign locally.

No-one should forget that it’s been a fantastic achievement for supporters to have played such an important role in achieving real change at the club.

It has also been a massive achievement for fans to have raised over £100,000 and everyone who helped us reach that target should be proud of their efforts. There is no doubt that the positive tone of the campaign set early on has helped in pulling together people from different backgrounds to work in partnership for the betterment of Raith Rovers.

So for us to get to this point, as supporters, we should give ourselves a real pat on the back. There's been a raft of emotions throughout the campaign from the ups after our best achievements to the depths of despair when things knocked us back. But we got there in the end.

If everyone can put that same effort into the future of the club we have no doubt that we will be able to turn around the fortunes of the club.

Everything you ever wanted to know about buying Raith Rovers and weren't afraid to ask!

What is the deal that is constantly being talked about?
Very simply we’re bringing a consortium of investors together to buy the club. The stadium, because it is an asset that we can secure financing against, will be separately dealt with but owned by the same consortium of people just in a different form.

If all goes to plan a consortium of investors (known as New Raith Rovers) will own the club. One investor, who is able to provide the financial guarantees required, will own the majority stake in the stadium but New Raith Rovers will also have a stake in the stadium to ensure some joined-up thinking.

Who are New Raith Rovers?
The supporters group ‘Reclaim the Rovers’, two groups of smaller investors, John Sim (a senior financial figure with KPMG), Mario Caira, Turnbull Hutton and potentially one other large individual investor.

Why can’t you tell us exactly who the other investors are?
It’s only fair to allow people their privacy. If they are OK about being publicly involved then that’s great but some people just want to help out and aren’t looking for publicity. If they would rather they keep their involvement private then we should respect that.

Why are Turnbull Hutton and Mario Caira involved?
As part owners they have considerably helped to progress the deal by agreeing to take a financial stake in the new company. Without this sacrifice we would have little chance of attracting the funds required. As with any investor they deserve to have an opportunity to voice their opinion within the new company.

Why is it taking so long?
Because the consortium involves so many different people, we have to carefully work our way through some important legal steps and convince enough outside investors that they should get involved.

It’s a bit of a Catch 22. In order to convince investors to commit funds we have to know roughly what it’s going to cost, what the risks are and how much investment is required. In order to have that information we need to negotiate a price, calculate the current financial position and be appraised of the ongoing costs of the business. Then we need to figure out how much we are willing to pay and how much the various parties are willing to accept. That means that both elements rely on each other.

Building a consortium is time consuming and calculating the various costs also takes time whilst at the same time we need to go back and forward with negotiations. We know it’s frustrating but without money to burn and a gung-ho attitude we have to do a deal that we can afford and will be in the best interest of the club in the long term. If that means taking a few extra weeks to get it right then, as painful as that is in the short term, that what we have to do.

So, have you actually made any progress at all?Yes It doesn’t really matter if we can tick 90% of the things needing done because only by completing 100% will change happen. It’s all or nothing really.

Has Mr Penman pulling out made this impossible?
No. It changed the way we had to construct the deal but there are advantages to this deal and options that wouldn’t have been available had we kept going down that route. Unfortunately this has meant more time has been expended constructing the new deal and dragged the process on for longer than anyone wants.

So when the deal goes through we’ll be rich and have pots of cash to spend on players?
No. The cost of paying for the club and settling the outstanding loans and debts to the end of the season will take the lion’s share of the buyout funds. We are aiming to have a reasonable contingency fund to ensure that cancelled games or unforeseen bills do not throw the club into crisis again. We can’t afford to let the club get into financial trouble and we owe a duty of care to all investors to ensure there are enough funds to make a go of it.


How much is this all costing?The total deal will be around £1.3 million.

Where is all this money going?!A mixture of repayment of soft loans, debts and ongoing costs.

When is a deal likely to be struck?
At this point we’re hoping that the final few investment partners will agree to commit funds to the buyout and we can settle on a price that’s acceptable to all – that could happen in a matter of days but we won’t set a date and become a hostage to fortune. We’re aware that the sooner this is completed the better it will be for everyone.

If we’re successful who will run the club?
Initially the New Raith Rovers consortium will appoint directors to get stuck in and put foundations in place. They’ll examine the running of the club from top to bottom and decide what is required to make it an efficient and responsible community club. This may well include appointing some new club directors who will run things on a day-to-day basis and support the existing staff in their work.

How will the supporters’ money be represented?
It was agreed between the groups that the Trust will have the legal shareholding as it was best suited for this purpose, but that the combined group will recommend who will represent the supporters in the short term. Initially Ali More has been put forward to the board of New Raith Rovers and he has the full support of all the supporters’ organisations. This position will be reviewed at the end of the season and hopefully there will be a way of supporters nominating and democratically electing the person they want to represent them. In the meantime Ali will work with the new board to help put the new foundations and organisation in place.

What about all the talk of a community club?
There’s little doubt that the club needs to have a radical rethink if it is to be successful in the coming years. Success is not only measured in league placing, it’s also measured by the impact and interest in the local community. Quite simply, if the local community sees the club is making a real difference to the community and isn’t just looking for handouts, then it will be much more likely to give its support – both through the turnstile and through commercial income. A club with a progressive community attitude is much more likely to attract the resources that will allow it to compete at a higher level.

Each week we ask the team to give their best for the cause. Now we’re saying that we will give our best to make Raith Rovers a source of pride and goodwill in the community. We believe that the “Reclaim the Rovers” campaign has given the club a respect and profile in the community that it hasn’t had for many years and we aim to build on that work and develop the club.

What can I do to help?
You can support the events that will be organised over the coming months. By joining one or all of the supporters’ organisations you should also be kept informed of what is happening. Financially you can contribute to the Loan Fund which will provide ongoing support. But simply by coming to games and spreading the word when things change you’ll be helping the club move ahead.

Just how bad a state is the club really in?
It’s in poor shape principally because an unrealistic budget was set for this season without the income to back it up but the problems go back many years. However, it’s really time to focus on the future. An agreed buyout should give the club the stability it needs but initially you may not notice too much of a change. Buying the club is a mighty task but rebuilding it is much more complicated and a long term project. However with the enthusiasm of volunteers and your continued support we could really do some great things. We hope you’re willing to join the rollercoaster ride!

Rovers Buy-Out Moves Forward

The Community bid to secure the long term future Raith Rovers has taken 2 significant steps forward.

Fans who have taken out loan fund notes have voted unanimously to release the cash to Reclaim The Rovers to support the bid. The 100% backing came in a postal vote conducted over the past fortnight. And the backing came as the fans' representative on the board of the new company was formally unveiled.

Long-standing Raith fan Alisdair (Ali) More will be the Reclaim The Rovers' director on the board of the New Raith Rovers Ltd - the company already set up and in place to take control once the deal with West City is done.

Ali, a key figure in the drive to negotiate a deal, was voted on to the board and will serve for at least the remainder of this season while the transfer of power is concluded.

"I am delighted to accept the NRR position in the interim to try and it’s an honour to be the fans’ representative on the Board. We will review this at the end of the season because we feel that it is important that fans have a direct say in who will be representing them on the New RR Board."

The positive moves underline that the campaign continues to make progress behind the scenes with the aim of striking the best possible deal as soon as possible in a bid turn Rovers' season round, and herald a new era for the Kirkcaldy club.

The vote from the loan note holders was crucial to this week's announcements.

Ali explained: “Although it may seem like a formality, it was important that the Loan Notes holders were given the chance to have their say on the proposed deal. We were confident that we would get a convincing majority for the right deal, but we were still absolutely delighted when every vote cast was in favour."

He added: "With Reclaim the Rovers having agreed on Monday to use the money raised throughout the campaign for the deal, this means that the fans have now concluded their side of the bargain.”

Ali will now be the fans’ figurehead on the board of the new company which will run the club after a successful takeover and which will have a much clearer focus on its own community working closely with fans, businesses and major players across the town.

His business background will be crucial in driving New Raith Rovers ahead, and his links with the fans will keep the club firmly in touch with its roots.

Kirkcaldy-born Ali (28) graduated as a prize winner in Business Studies from Napier University in 1999. He was sponsored by Hewlett Packard and continued his studies to qualify as a chartered management accountant whilst working full time as a business analyst.

He currently works for Agilent Technologies in South Queensferry as a Global Financial Analyst, which allows him to travel all over the world working with people from different backgrounds and cultures. In 2003, he was awarded the top employee accolade by the Agilent CFO for outstanding achievements in finance.

Ali has been part of the campaign since its launch, working on the finance group's business plan as well as taking part in negotiations over the deal.

Speaking from India, where he is on business, he said: “ I got involved because I am a lifelong Rovers fan and, because I am a qualified accountant with significant business experience, I couldn't sit back on the sidelines and watch what was happening and do nothing.''

And he praised the fantastic efforts of supporters and volunteers who have driven the campaign -- and urged them to keep on working hard to secure the club's future.

“I want to acknowledge that what we have achieved so far has been amazing,'' he said, ''but the hard works starts from here. Reclaim The Rovers was only stage one. If we want to move things forward, everyone has a part to play. We need everyone's backing now, but this is not just a financial plea - it’s a plea for everyone to engage with us.

"I want to listen to the views and more importantly, I want people to become involved whether its skills or spare time. That's a part of what a community club needs to be about.”

Details of the new board have yet to be divulged while negotiations continue, but Ali revealed: “The directors of New Raith Rovers will not necessarily be the same as those on the board of Raith Rovers, although that may initially be the case until we can stabilise the ship.

"Over a period of weeks and months, changes will need to take place so that we have a workable longer term organisational model between New Raith Rovers and the football club. This needs to be addressed by the New Raith Rovers board.”

STEPS TOWARDS NEW RAITH ROVERS

The community consortium bidding to secure the future of Raith Rovers has taken another step forward with the formation of New Raith Rovers Ltd.

New Raith Rovers is the legal vehicle into which the bid’s backers will invest. The intention is that when the deal is concluded the new company will control the football club and will part own Stark’s Park with one of the investors.

‘Reclaim the Rovers’ spokesperson James Proctor explained that the formation of the new company was one of an important series of low key actions on the way to a successful conclusion of the bid.

“At the moment it must seem to the ordinary fan that nothing is happening. But that could not be further from the truth.

“Translating the intentions of the consortium into a proper legal form is a complicated business, partly because of the number of investors and partly due to the need to ensure that we satisfy all the legal requirements involved in this sort of transaction

“It is important that everything is done in the correct manner but the consequence of that is that it takes a bit longer than we would like. However everyone involved is doing their best to conclude a deal as quickly as possible and the formation of New Raith Rovers is another indication that things are moving in the right direction.”

ROVERS' FANS HIT TARGET

Rovers’ fans have taken a massive step forward in their campaign to
secure the future of their club.

We have hit our initial fundraising target of £100,000 this week after a successful collection was held at the Morton game on Saturday. The ‘Take Note’ appeal raised £4,169 with away fans contributing almost £400 to that total.

Fundraising leader Tom Phillips said:

“It has been a magnificent achievement to reach a challenging target so quickly. We’ve done it thanks to an enormous effort by supporters from every part of the Rovers’ community. Fans at different levels have contributed as much as they can afford to show that they care passionately about the future of their club.

“It was a humbling experience to be sitting in front of a large pile of money when we were counting the takings from ‘Take Note’ at the weekend. But it was just another indication of how well the campaign has gone.

“The Loan Notes Fund has been a phenomenal success allowing people to contribute £250 or more and has raised a total of more than £55,000.

“The fundraising events may have contributed a smaller proportion of the total but they have been hugely significant, not just in raising funds, but critically in promoting the campaign and giving it a profile in the local community.

“The group has been dependent on the contributions of individuals from all supporters’ organisations who have put in a tremendous amount of work in recent months organising sponsored walks, benefit concerts, hill climbs and all sorts of other activities. Their dedication to the campaign deserves the highest praise.

“Another spin-off from their efforts has been the close working relationships which have been developed between the various groups. The different organisations have been used to doing their own thing before but they have been able to come together to work towards our common goal.

“By identifying people with different skills the campaign is helping lay the foundations for the new community Raith Rovers should the takeover be successful.”

Although the initial target has been reached the effort continues as campaign spokesperson Mike Melville explained.

“The significance of the £100,000 is twofold. Firstly back in July the fans’ groups undertook to reach that target and we have delivered on that promise. Secondly that sum will guarantee ‘Reclaim the Rovers’ a seat on the board of the new ownership group with the other investors.

“However in terms of the funds required to make a success of the club after a takeover, every single extra penny counts. There have been a couple of issues thrown up during due diligence which could impact on the running of the club for the rest of the season. That is why it is essential that we continue fundraising up to and beyond the takeover.”

The success of the campaign now hinges on negotiations with the current owners, West City Development. A successful outcome to those talks could see Raith Rovers back in the hands of the community in the very near future.

£4k Raised in 'Take Note' Campaign

A magnificent effort from the Rovers support saw the 'Reclaim the Rovers' fund increased by over £4,000 taking the campaign ever closer to the objective of raising £100,000. The campaign also benefitted from the generosity of the visiting Morton fans who chipped in around £400.