Stags Fans United: Frequently Asked Questions

 

There is a lot to discuss at the AGM; will there be sufficient time to discuss everything?

It is important that all trust members are given sufficient time to find out exactly what the deal is and so we have put aside what we believe is sufficient time to discuss all matters. We also hope that, by releasing this information sheet, we will answer many of the questions that have been asked since the announcement of the AGM.

 

What is a nominal share value?

The nominal value of a share is an arbitrary value allotted to that unit when it was originally created. When considering shares, it is usually the market value and not the nominal or book amount which investors and other stakeholders are interested in. The market value of a share in an established company is likely to be different from that of its nominal value. In cases where the market value is the greater of the two, the difference is called the share premium. The nominal share value for shares in Mansfield Town was set at its creation in 1922.

There are 540,000 shares in Mansfield Town so how do the 5,500 shares being offered to SFU equate to 5.5% of the club surely this is actually 1% of the shareholding

There are two types shares in the club Ordinary and A Ordinary shares
Ordinary shares are also known as equity shares and they are the most common form of share in the UK. An ordinary share gives the right to its owner to share in the profits of the company (dividends) and to vote at general meetings of the company.
A Ordinary shares are a
share of stock which do not give the stockholder the right to vote on matters of corporate (or club) policy.

In terms of Mansfield Town it is important to understand this difference between Ordinary shares of which there are 100,000 and A ordinary shares which are not voting shares. SFU is intending to extend its share to 8.8% of the important voting shares. (The SFU shares are Community Shares specifically created for the Trust to purchase.) The A ordinary shares of which there are 447,000 (owned only by the club) are only counted when it comes to the payment of a dividend which in turn dilutes our shareholding. As stated earlier these are not voting shares.
This means that in terms of control of the club the A ordinary shares are meaningless. A wealthy person could buy all 447,000 A ordinary shares in the club and have no say or control on the running of the club.

If the nominal share price is 50p then you are dramatically overpricing the club and offering the member of SFU a bad deal

The 0.50p nominal share price in the club accounts is the nominal price when they were created on 17th March 1922 not the value of the shares today. They have absolutely nothing to do with the price of the shares today. The price of 10 a share is what we have been offered after seven months of negotiation with the owners and officers of Mansfield Town Football club.
The Trust are purchasing a further 5.5% of Community shares taking the Trusts total shareholding to 8.8% bearing in mind we have invested in total 88,000 to get to 8.8% that values the club at around the million mark without its stadium.

When TM purchased their shares in Mansfield Town Mr Haslam valued the club at 1 million.
TM purchased 3.3% of the shares investing 33000. As it turned out when the club was sold the stadium was valued at 1.9 million. It is fair to say that at the time was a convenient figure (but probably fair) as it allowed Keith Haslam to remove the stadium from the ownership of MTFC to Stags Limited via a dividend.

What do SFU get out of the deal?

Stags Fans United is a Supporters Trust and aims to both invest in the club to support the new owners but also to gain representation for the fans on the board. The deal which is being discussed at the AGM allows us to invest 55,000 in Mansfield Town and provides the fans of the club with a Supporter Director for an initial three year term.

Why have SFU already announced who the Supporter Director will be before the AGM?

During the discussions with the club (which took seven months) the club requested that Colin Dobell, one of the negotiating team, was invited to be the first Supporter Director. This is mainly because they know and have worked with Colin during the negotiations. Colin will be accountable to the members of SFU and the Supporter Director will be facing an annual re-election.

What do the members of the SFU board get out of this deal?

The members of the trust board are not remunerated in any way for their work. This includes travel or subsistence expenses for those who travel long distances to meetings or the negotiations with the club. All board members give their time voluntarily and for free.