New investors want to buy into York City FC.
Two purchasers are interested in each buying a 2.5% stake in the club.
Fans group the York City Supporters’ Trust is asking its members to vote on a deal which would see the trust selling 5% of the club to the pair for £42,500.
The two investors are Raoul Ragoowansi, the chief executive of Land First, a London-based property firm; and Alex Menn, general partner at venture capital firm Begin Capital.
The trust currently owns 25% of the shares of York City. Under the proposal being put to members, it would also provide a 15% share option to 394 Sports, the company owned by City’s two co-owners, Julie-Anne and Matt Uggla.
It grants 394 Sports the right to acquire up to a further 15% equity interest in York City
Football Club from the trust within a six-month window from the date of signing.
If that was taken up, it would leave the trust with just 5% of shares.
The trust’s board have unanimously backed the deal. The two new investors have promised a £350,000 investment into club infrastructure on receipt of the shares.
If members of the trust vote to back the deal, Mr Ragoowansi and Mr Menn would get 13,750 shares each, paying £21,250.
The price reflects the original purchase price paid by the trust for it shares. It values the club – whose men’s team have just secured promotion back into the Football League – at £850,000.
Trust members are being asked to cast an advisory vote on the deal between now and 8pm on Wednesday 27 May.
Trust vice chair Jim Calverley said: “This is a genuinely exciting moment for York City Football Club and we are proud to be bringing it to our members in the way that we always do – openly, transparently, and with supporters at the heart of the process.
“The package we are putting to members includes real and meaningful investment into the football club alongside significant strengthening of the trust’s own rights and protections. We look forward to hearing the views of our membership.”
Anyone who joins the trust before 12pm on Wednesday 20 May will be eligible to participate in the advisory vote.
Members will also have the chance to attend an in-person Q&A event during the voting period, where the trust board will present the proposals and answer questions directly.
Full details of this event are to be confirmed.
