Club Announcement 11 April 24

[geedub]

https://hamrichfc.com/blogs/news/scalin ... c-partners

Not the most crystal clear of announcements for a small sixth-tier football club (worded more like some sort of stock exchange announcement) but it seems the owners are now looking to bring in new investors.

Maybe it's really an acknowledgement that we will need a lot more funding to achieve the stated aims of the owners.

[Mucky knees]

The format makes the article difficult for me to read. The blue back ground is far too dark and the lines too close together.

So whosoever is responsible take note!

MK

[geedub]

The format makes the article difficult for me to read. The blue back ground is far too dark and the lines too close together.

Perhaps some further investment might allow the website style to be updated. In any event, the text is as follows:

SCALING FOR GROWTH WITH NEW STRATEGIC PARTNERS
Hampton & Richmond FC have started a process to explore new strategic partners in support of their growth plans on and off the pitch.

Following 12 months of continued transformation and investment, including the latest club capitalisation, management, and ownership, are delighted, and steadfastly committed to the ongoing development and growth of the club. As a result of the initial multi-million-pound investment into infrastructure and squad, the Club is open to the possibility of onboarding new strategic partners keen to actively contribute to the Club’s growth journey.

As part of the process, the Board is considering a range of potential new and existing partners, including investors, that have already expressed an interest. The process follows the latest capital injection from Club ownership vehicle, Ramayana Ventures Limited, and the launch of a new strategic plan that includes the development of the football infrastructure, expansion of commercial and media operations, and social impact activities focusing on youth development and life chances.

Geldards LLP and Lawrence Grant LLP are acting as the Club’s advisors.

Hampton & Richmond FC does not intend to make any further announcements on this matter.

Interested parties should contact partners@ramayana.ventures

[TW10]

My read on it is after watching tuesday night the current investors are thinking “no thanks”. Presumably they have deep pockets but not deep enough for the cost of reaching the EFL. After all new investors would dilute current holdings so by advertising they are not bothered about this. It is indeed a curious step to make a formal announcement as most funding of this kind is done through contacts. My bias is knowing that owning a club at this level cannot provide a financial gain and to turn Hampton into a genuine EFL club is unrealistic. My cynicism tells me this is a U turn or perhaps even the end of he road.

[geedub]

My cynicism tells me this is a U turn or perhaps even the end of he road.

That's an interesting take but I guess it could be interpreted that way.

However, I can't believe that Ramayana would convert its loans to the club to equity and three weeks later have a huge change of heart. It is possibly interesting that the filings for the new equity aren't up at Companies House yet, although I believe that the deadline is 30 days after issue for these so may just be working their way through the system.

[BeaverWatcher]

If you are looking to sell/get additional investment in to a business that you own, pretty much outright, then taking a £1.4 million loan debt of the balance sheet would make it more attractive to prospective investors or buyers.

[geedub]

If you are looking to sell/get additional investment in to a business that you own, pretty much outright, then taking a £1.4 million loan debt of the balance sheet would make it more attractive to prospective investors or buyers.

Agreed - although you might do that as part of the negotiations with buyers/new investors.

[Tony]

Firstly there is no need to put out such a statement unless there is real expectation of announcing some major news later on. This is news management but without telling too much of the detail. It does say existing owners and management are committed to the club but that could still mean that they don’t want to put much more of their own money into it but happy to bring in new investors. My guess is that there has been an approach or approaches (the announcement pretty much says that) which may require giving away some level of control - not unlike what happened when Ramayana came on board. Cleaning up the club balance sheet makes eminent sense and suggests new investors would not invest via Ramayana. The announcement mentions a new strategic plan but I am not clear if that refers back to Ramayana’s original plan or something new. Obviously a way to go before anything concrete emerges and these discussions can take a long time and collapse at any point. My feeling is that this could be a positive development but rather depends on who the new investors are and what they bring to the party.

[Shepperton Supporter]

There are various possibilities from this statement, the one that Tony has put forward would be a logical and potentially good for the future. We await to see what transpires.
It might be we may see before any announcement on this topic, some other indicators of where we are going.?

[EastTerracer]

Perhaps there is a realisation that the initial investment has made a modest impact on infrastructure and squad compared to where we were at the end of last season. Gates (and presumably revenue) are up but there was also a slew of expensive sounding management recruitments. Are we any more sustainable as a club and are are those appointments delivering value ?

[ExRef]

No mention of 3G pitch or new floodlights. Several other clubs have already started the conversation (or plan to shortly). Now little or no time left to make changes before next season (whichever League we will be in).

[TW10]

Would prefer to continue to play on grass, the pitch is fantastic. It’s pity we play mainly hoof ball these days. If the club has genuinely aspirations for the EFL then enduring the. cost of a plastic pitch makes no sense whatsoever.