Investment Ideas Favourably Received
Following a press conference on Wednesday, Clyde’s plans to attract fresh investment into the Club have been widely welcomed as “novel” and “unique”.
The full text of the Press Release, dated 23 March 2005, is reproduced here, together with details of some of the issues raised by the press:
CLYDE FOOTBALL CLUB LTD
Announce:
THE CLYDE FOOTBALL LICENCE
1. The development of the unique ownership model of Clyde Football Club
2. Over the last twelve months, Clyde Football Club has developed an innovative approach to combine secure long-term ownership with open access to finance.
3. Now Clyde will grant a Licence to operate the First Team Squad as a stand-alone activity.
4. The Club ownership does not pass to the Licensee, the Club remains within the ownership of its supporters and within the control of the Clyde Directors.
5. The Licensee has complete and autonomous control of all activities of the playing and managerial staff of the first team squad.
6. The Licence agreement is structured to ensure that the Licensee falls fully within the sanction of the football authorities and there is no creation of any distance between the governing bodies and the football activities.
7. Clyde will agree to underwrite a significant proportion of squad costs; this figure would be determined accurately and committed to contractually over the term of the Licence. The licensee would be expected to increase the expenditure beyond this contracted contribution from the Club.
8. The Licence would subsist for a mutually negotiated period, initial discussions with interested parties have indicated perhaps three to five years although longer terms have been considered. The Licence would be transferable subject to fit and proper status.
9. There is a cost to the Licensee, but the Licensee determines cost.
THE CLYDE FOOTBALL LICENCE;(additional information)
The Club Directors can concentrate on the roots of the Club within the community and youth development.
How does it benefit the Licensee?
As in many situations, it is financially more astute to hire than it is to buy. There is far greater freedom and the risks, rewards, obligations and rights are clear and manageable.
What’s in it for Supporters?
The obligation of the Licensee is to put a team on the park that is capable of challenging for league success.
Other issues:
Like many clubs, ownership is not for sale, or not usually until it is in such a financial mess that nobody wants to go near it