Majority rule – email reminder 2

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Your Vote, Our Club, Majority Rule   

Now is the time to vote on the proposal to change the minimum fan ownership level from 75%+1 to 50.01%. This would allow the club to bring in minority investors while still maintaining majority fan control.  

REMINDER 1: If this vote passes we will still need your approval to bring on board an investor. This vote gives us the clear mandate to find one. 

This vote is fundamental to our future and whatever your view we hope all members will exercise their democratic choice. 

Why are we voting now?:

  • Financial Challenges: AFC Wimbledon has debt of around £10 million. In 2027 we are due to redeem (pay back) £3.3 million pounds of bonds. We have had two profitable seasons off the back of player sales, this isn’t guaranteed in the future 
  • Debt Management: The cost of borrowing is expected to increase in the future. The club wants alternative ways to manage debt and invest in the club’s growth. Our debt costs us £400k a year at the moment, that’s money we can’t put on the pitch or invest in the stadium
  • Future Investment: Selling shares to minority investors could provide additional funds for the club, without relying solely on future fan generosity.

Protections for Fan Ownership:

  • The Dons Trust would retain majority voting rights (at least 50.01%)  
  • No single shareholder can own more than 15% of the Club  
  • The articles of association of AFCW PLC have been strengthened to protect the Trust’s control 
  • Losing fan ownership would require immediate repayment of all bonds held by fans 
  • We are introducing super restricted actions to protect Plough Lane.  

REMINDER 2: The Trust votes in a block, so 50.01% will always be a majority, there is no way to split or reduce the Trust’s voting rights. 

Our financial options as they stand: 

1. Selling equity in AFCW PLC (Majority Rule):

  • Pros: Could provide additional funding without losing majority fan ownership. We think we have the story that will attract the right investors. 
  • Cons: Needs members to be happy to approve the vote, we lose the power to do some things without other shareholder agreement (see Special Resolutions details here https://thedonstrust.org/2024/10/25/majority-rule-faqs/. There’s no guarantee that buyers will be found. 

2. Taking on external debt:

  • Pros: Could provide immediate financial relief. 
  • Cons: Would require securing the debt against the stadium, which could put it at risk. High interest rates would significantly impact the club’s finances and reduce playing budget.   

3. Rolling over Plough Lane Bonds, creating Plough Bonds 3 & 4

  • Pros: Could avoid immediate financial pressure. 
  • Cons: Would continue to drain budgets with interest payments. Would need a new team to run it as the original Bond team don’t support the idea. Requires finding new bond investors.  

What we will be doing anyway, but is unlikely to generate enough income to redeem bonds, grow playing budget and invest in stadium projects:   

  • Growing commercial revenue - James Woodroof and his team are working on this and signs are promising, but we are unlikely to make profits in the millions we need
  • Fundraising - we’ve seen the power of our fans in times of crisis, but we also need sound financial plans outside of asking fans for money
  • Football fortune - Put all player sales, cup revenue and TV income into paying back bondholders. This is fine but they aren’t guaranteed and would reduce our playing budget 

Further Information: 

  • Attend events to ask questions and discuss the proposal 

The deadline for the first vote is 18th November 2024 – record number of members have voted already make sure you add your voice.   

The Dons Trust board