The Dons Trust board would like to update members on the Club’s financial position, and a shift in our approach to finding potential investment partners.
It’s been 12 months since the boards of the Dons Trust and AFCW PLC shared detailed cash projections (AFC Wimbledon Finance Update – September 2024 | The Dons Trust) and recommended that DT members approve the 50+1 resolution.
Since then, the Club has focussed on growing revenues and managing costs. We’ve welcomed equity investment from John Green and friends, but the cost of competing in the EFL continues to rise significantly.
Our detailed update earlier in the year (AFC Wimbledon and the finances of EFL football | The Dons Trust) outlined the financial pressures we face.
Looking ahead, and based on current cashflow forecasts, we believe that further minority investment will be needed to support and strengthen our fan ownership model.
We’ve already been actively exploring potential investment approaches and now we’ve decided the best next step is for us to also proactively seek potential investors, This will allow us to explore deal structures that could work for both partes – with any proposed deals brought back to members for approval.
Importantly, no equity deal can be approved unless members vote to make more equity available.
AFC Wimbledon is an attractive proposition for investment partners.
We have a unique history, a globally recognised brand, a strong track record in talent development, and our own home in South West London.
This combination has already attracted interest from several investors. It’s also motivated us to widen our search – seeking partners who share our vision and values, and who can bring new funds to help us grow and write the next chapter of our story.
Conversations with those who have approached us suggest there are people who understand our vision, support fan-owned football, and could offer not just equity finance, but also long-term value, expertise and working capital.
We firmly believe the right investors are out there –, but finding them will take time, and we must be proactive in this search.
The DTB has asked the Club board and finance committee to begin this search, using their professional networks and investment consultants if needed.
Our constitution allows the DTB to explore investment opportunities before a 50.01% vote, provided we inform members (as we are doing now) and commit to keeping members updated throughout the process – which we will.
If members have suggestions or recommendations of potential investors, please contact us here contact@thedonstrust.org.
The Dons Trust and Club boards remain absolutely committed to retaining fan-owned majority control of the Club, including ownership of Plough Lane, in a financially sustainable manner.
We believe the only realistic way to do this is through further equity funding.
To become financially sustainable, we need to invest in the Club’s football infrastructure, with investment in academy, training ground, coaching and recruitment, and sports operations.
The Dons Trust board, finance committee and Club board all agree that over the next 18 months, there is limited prospect of the Club being able to rely on significantly higher operating revenues, or on large-scale donations.
We also do not believe the Club should take on increased financial risk by raising debt above historic levels.
Given this, a new injection of equity investment, targeted to strategic priorities, is required to put us on a sound financial footing and allow us to compete in League One and beyond.
Simply put we need investment to strengthen our football infrastructure, maintain and improve our league position, and achieve financial sustainability as a fan-owned club. And we are now actively seeking it.