Dear Shareholder
We are writing to you on behalf of the Club’s current co-chairmen
• Mr Alex Petheram
• Mr Eamonn McGurk
They are both directors of this company and currently own the majority of the shares. They have been approached by the directors of Gloucester City AFC Limited to acquire the FA license and operating platform of Gloucester City Association Football Club (1980) Limited and take the club forward.
Background
The club has historically made horrific trading losses and its existence through the last 20 years is largely due to the personal investment of the club’s co chairmen in covering severe funding shortages, stepping in regularly to cover players wages, ground upkeep and other substantial overhead. This is in addition to the rebuilding of the ground. You will be well aware of the flooding of Gloucester City in 2007 and the journey since that date. The Hempsted ground needed substantial investment involving demolition and raising the ground to provide a modern facility conducive for league matches as well as training. Some funding was achieved but fell well short of that required amount for the redevelopment of Meadow Park. Both Alex and Eamonn were totally committed to this project, using their personal finances as well as their project management skills to drive this ambitious project through to completion.
Prior to the completion of the facility, it was necessary to travel to another club using their ground for training and “home” fixtures. The return to Meadow Park after 13 years exile was met with COVID in that first season back resulting in the total loss of mainstream income with largely a normal year as far as overheads were concerned. This mass of operating funding has been mainly provided by the club’s chairmen. Today the club benefits from a 4G pitch allowing everyday use, LED floodlights having low energy usage and the modern facilities enjoyed by so many from within the city and beyond. The fact that this is a community used asset was a key factor in the redevelopment plan and indeed the ground is used by in excess of 20 teams of all ages and gender.
Current Funding and Financial Position
Funding of well in excess of £2 million has been provided by Alex and Eamonn. This is represented by loans advanced, along with the stadium and ground redevelopment costs and other club operating costs. Financially, as at 30 June 2021, the company’s balance sheet was in deficit by £449,447 and as noted above, losses continue to be incurred each year. The Stadium and ground are not owned by the company and are utilised by the Club under a lease agreement. As such, the Club has no assets of financial worth.
The Club Going Forward
The Chairmen are also responsible for the day to day operation of the Club which like any other business requires time on revenue generation, managing employees including players, administration and ground staff, financials in balancing cash requirements, marketing. However on top of the pressures of running a routine business, there are additionally issues in dealing with the FA, legal aspects including players contracts, ground safety, sponsorship deals, non first-team club activities. All this work takes considerable time yet goes unremunerated. The Club has arrived at a cross roads. The sizeable financial package invested to date totalling in excess of £2m together with the ongoing trading funding requirement fall on Eamonn and Alex to finance and clearly funds invested are no longer in any way proportional to respective shareholdings. Although there are historic links to your shareholdings, there is a need to progress financially to enable football to continue at the club with an appropriate funding platform in place which is fair to those investing considerable funds. To enable the assignment of the FA license and operating platform, it is critical that the current investors acquire 100% of the share capital of Gloucester City Association Football Club (1980) Limited.
Proposal
Patrick and Nicky Chambers have approached the co-chairmen for an effective management buyout of the Club. Having achieved that, they will be responsible for developing a model to identify funding and investors over the forthcoming period and will actively provide you opportunity to invest in shares of Gloucester City AFC Limited. As stakeholders you have the opportunity to continue to participate in the furtherance of Gloucester City Football Club which you have supported loyally for so many years. To enable this proposal to continue, our clients Eamonn and Alex will purchase your shareholding in Gloucester City Association Football Club (1980) Limited for their face value of 1p / share. In selling your shareholding, this enables the establishment of an appropriate financial model which will secure the clubs future enabling league football to continue. Please can you give your consent to the sale of your shares in the next 14 days by sending your confirmation in writing to Eamonn McGurk, Gloucester House, 29 Brunswick Square, Gloucester, GL1 1UN.