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.
We would like to give our sincere thanks to everyone who contributed and helped to bring the campagn to a successful conclusion.
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 email@example.com or by mail or telephone (01592 263514) through the Stark’s Park office.