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[Radium]

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Why did the deal to buy the club end up diluting the HSL shareholding? IIRC it was around 3-4 % just eliminated. That must have represented a lot of fan donation.

All the available shares were bought by RG, which included the additional shares that had been created for HSL to buy.


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[superfurryhibby]

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All the available shares were bought by RG, which included the additional shares that had been created for HSL to buy.


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No, there was a dilution of the existing HSL shareholding as part of the deal.

[MyJo]

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No, there was a dilution of the existing HSL shareholding as part of the deal.

I think that new shares were created every time HSL bought them from the club which in turn increased the overall number of club shares and diluted everyone’s shareholding. That would have continued until the point that HSL owned 50% of the overall shares in the club.

When RG agreed to buy the club he has bought out STF’s existing shareholding and the remaining newly created shares that would have been earmarked for HSL. The purchase of newly created shares is likely to have been how RG has immediately injected cash into the club in the same way it would have done had HSL been able to buy them.

[ancient hibee]

Correct the £1.25M was new capital.

[superfurryhibby]

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I think that new shares were created every time HSL bought them from the club which in turn increased the overall number of club shares and diluted everyone’s shareholding. That would have continued until the point that HSL owned 50% of the overall shares in the club.

When RG agreed to buy the club he has bought out STF’s existing shareholding and the remaining newly created shares that would have been earmarked for HSL. The purchase of newly created shares is likely to have been how RG has immediately injected cash into the club in the same way it would have done had HSL been able to buy them.

I’m still confused. Surely any dilution of shares pre- Ron Gordon would involve have only meant a dilution of STF’s existing stake, otherwise how would HSL have ever reached the 25% mark?

I’m not the smartest at times and as pedantic as pedantic as can be when it comes to parting with my cash. I still can’t understand how Gordon didn’t just buy STF’s and RP’s shares and how HSL stakeholding dropped, but I suppose it's by the by now.

[The Captain....]

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It's not as simple as that. It's about accountability.

I buy a ST. For that I expect to watch 90 minutes of football when Hibs are at home. There are obviously other perks but that's essentially it.

Likewise if I go to Tesco and buy a loaf of bread and a pint of milk I'd expect exactly that. However if someone was then standing at the end of the till every time I visited asking for a tenner to fund the 'food department' I'd have a few questions and expect a degree of control over how my money was spent.

Why is a football club any different? I've been an enthusiastic supporter of HSL, to the extent I was personally threatened on more than one occasion. However this just removes all accountability. Previously the money all went to the football department but it was in return for shares thus giving HSL contributors a voice through the acquisition of said shares. Now the club expects the same fans to continue to hand over money but they are removing that voice, the ability to hold those running the club to account and the ability to influence decision making. If people are happy with that then fine. I'm not.

You're not alone..I share your.misgivings and will be stopping my contributions.

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[Speedway]

Let’s all have misgivings and stop giving the club money.

Whatever the club are doing they are not to be trusted.

Don’t trust them, give as much advantage to the competitors as possible.

They don’t doubt their clubs because they’re stupid.

We’re smart, unless we see an auditors report, the club can **** right off.

We may be supporters but come on, there’s a limit and RG, thieving little Peruvian, has crossed a like.

Or is it HSL I hate and don’t trust? Either way, keep your money away from the club at all costs.

It’s a con, A CON I TELL YOU!!!

[basehibby]

I've not stopped my HSL payments just yet but it's a matter of time if theres not a clear statement as to its ongoing purpose. I love Hibs as much as the next Hibee but it IS a business and not a charity. We need to see some bang for our buck to commit to ongoing contributions. And as for attracting new members- never mind "pony up" - they're flogging a DEAD pony right now.

[MyJo]

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I’m still confused. Surely any dilution of shares pre- Ron Gordon would involve have only meant a dilution of STF’s existing stake, otherwise how would HSL have ever reached the 25% mark?

I’m not the smartest at times and as pedantic as pedantic as can be when it comes to parting with my cash. I still can’t understand how Gordon didn’t just buy STF’s and RP’s shares and how HSL stakeholding dropped, but I suppose it's by the by now.

Not exact figures but say there were 500k shares in the club before HSL got started.

500k of shares worth £5m so each share is valued at £10. STF owns 100%

STF agrees to issue 25k in new shares in the club to HSL

The club is still valued at £5m but there are now 525k shares so each share is worth £9.52 now. STF owns 95% (500k shares) and HSL own 5% (25k shares)

HSL get another 25k in shares.

The club is still valued at £5m but there are now 550k shares each worth £9.09. STF owns 91% (500k shares) and HSL owns 9%. (50k shares)

HSL get another 50k shares.

Share value now £8.33. STF owns 83% (500k shares) HSL owns 17% (100k shares)

Ron Gordon rocks up and buys STF’s 500k shares and 400k newly created shares that HSL didn’t buy.

The club is still worth £5m but each individual share is now worth £5.

Ron’s 900k shares is now 90% while HSL’s 100k is now just 10%.

It’s obviously a lot more complicated that that I’m real life but pretty much how it worked I believe. If HSL has raised more money and continued buying more of the newly issued shares before Ron Gordon came in they could have owned 50% and only STF’s 50% stake would have been sold on.