Raith Rovers has a complex company structure, with four companies involved – Raith Rovers FC Ltd (the original company, which holds the club’s league membership), Starks Park Properties Ltd (which owns the stadium), and two holding companies – Raith Rovers Holdings Ltd (which controlled the club during the 1990s and the early part of the 2000s) and New Raith Rovers Ltd (which was created to facilitate a community buyout in 2005, but no longer exercises control over the football club.
Raith Rovers FC Ltd
Raith Rovers FC Ltd is “the club” (i.e. it holds SFA and league membership). There are lots of marginal, mostly historical, shareholdings with little decision-making power or influence.
In May 2023 a consortium (Dean Mckenzie, Ruaridh Kilgour, Colin Smart, Andrew Barrowman, Allan Halliday and Steven Macdonald) acquired 50% of the club from Starks Park Properties Ltd.
Raith Rovers FC Holdings Ltd
Raith Rovers FC Holdings Ltd was formed in 1994 in order to enable new investment in the club. Until 2014 Raith Rovers Holdings Ltd had majority voting rights in Raith Rovers FC Ltd, but now owns 18% of Raith Rovers FC Ltd. Control passed first to New Raith Rovers Ltd when historic intercompany debt was converted into equity; and then to Starks Park Properties Ltd in 2017 when that company acquired New Raith Rovers Ltd’s shareholdings.
Starks Park Properties Ltd
Starks Park Properties Ltd owns the stadium – the club’s only physical asset of significant value – and the largest single block of shares in the football club itself. Together with its 26% shareholding in Raith Rovers FC Ltd, it holds a 58% share in Raith Rovers Holdings Ltd.
New Raith Rovers Ltd
New Raith Rovers Ltd was formed in 2005 as a result of the “Reclaim The Rovers” takeover. Until the 2017 takeover, rules were in place to ensure it could not be owned by a single majority shareholder. This was designed to encourage consensus and cooperation rather than outright control. New Raith Rovers Ltd is the company where the Raith Supporters Trust holds shares on behalf of all the official supporters groups at the club.
In May 2017, John Sim purchased Mario Caira’s shareholding in New Raith Rovers Ltd, and now owns 46% of this company (again, through NRR Investments Ltd).
A Brief History of Raith Rovers FC’s Ownership Structure
1981
In the early 1980s Raith Rovers share capital was £12,000, largely held by small local shareholders.
In 1983 the government introduced the Business Expansion Scheme to encourage investment in young, growing companies (Raith Rovers was neither!)
Existing shareholders could recover income tax from the government at their marginal rate (up to 60% at the time), i.e. £10,000 worth of shares would cost the investor £4,000, and the government £6,000.
Edinburgh merchant banker, Iain Watt, suggested that the club use this scheme to increase its share capital.
1987
Raith Rovers raised £68,000 by this method, increasing the share capital to £50,000 in 1983, and again to £80,000 three years later.
This introduced a new dimension to the club’s ownership – significant shareholdings concentrated in only a few hands, who could easily combine to force through, or block, major changes.
The consensus of a widespread number of small shareholders was replaced by an oligarchy whose actions and decisions could potentially be influenced by consideration for their own investment.
1993
By the early 1990s the club was in the Premier Division, and minor shareholder Alex Penman sought to invest in the club.
With all of the share capital issued, the three largest shareholders, including Iain Watt, blocked these attempts at further investment.
At an Extraordinary General Meeting, minor shareholders were persuaded to vote for the creation of a Holding Company to outmanoeuvre the major shareholders.
1994
Following the creation of Raith Rovers Holdings Ltd, the shareholders who previously had held control were sidelined, and the club was under the control of one person for the first time.
This controlling shareholding was subsequently sold, twice, with disastrous consequences.
Despite a cup win, a European run, and another spell in the Premier Division the club made huge losses, and in the early 2000s accepted investment from Claude Anelka in return for the manager’s position.
2005
The club was now under control of Danny Smith, Colin McGowan and Alex Short, and the ownership of Starks Park having been transferred to a separate company (West City Developments Ltd).
The owners wanted out, and had applied for planning permission to build houses on Starks Park.
The ‘Reclaim The Rovers’ campaign was launched with the aim of raising enough funds to bring the club back into the Raith Rovers community.
2006
On 31st December 2005 the takeover was completed.
A new holding company, New Raith Rovers Ltd, was formed, this time with restrictions in place to prevent this being controlled by any one person.
New Raith Rovers owned 59% of Raith Rovers Holdings Ltd, which in turn owned just over 50% of Raith Rovers FC Ltd.
Raith Supporters Trust holds shares on behalf of all of the supporters’ groups, securing a seat on the board.
Despite all of this, the takeover was underfunded, and only led to a more confusing structure…
May 2017
Following the takeover, the most common question to the Trust from fans was “so who owns the club now?”
This wasn’t an easy question to answer, so we began to document this, updating the public version of “Who Owns What?” after any significant change.
There was interest from the RRFC board to simplify this structure, and between 2012 and 2014 the share capital of RRFC Ltd and RRFC Holdings Ltd were increased.
Inter-company loans between New Raith Rovers Ltd and these companies were converted to equity, resulting in New Raith Rovers having a clear majority shareholding (effectively 86%).
August 2017
With the football club struggling financially, Starks Park Properties Ltd acquired New Raith Rovers Ltd’s majority shareholding. As a result, Starks Park Properties Ltd owned 76% of RRFC Ltd, and Raith Rovers Holdings Ltd owned 18% of RRFC Ltd.
Starks Park Properties Ltd also owned 58% of Raith Rovers Holdings Ltd, giving it an effective 86% share of RRFC Ltd.
NRR Investments Ltd owned 73% of Starks Park Properties Ltd, with New Raith Rovers Ltd owning the remaining 27%.
NRR Investments Ltd owned 46% of New Raith Rovers Ltd, effectively giving it an 85% share of Starks Park Properties Ltd, and an 74% share of RRFC Ltd.