Eastleigh to transfer chairman's loan into shares

Eastleigh have confirmed that the club has received permission from shareholders to issue up to a total of 10 million shares in the company

At the meeting a resolution was passed agreeing that chairman Stewart Donald’s loan of £4,852,394 would be transferred into shares.

The club is hoping to be able to offer fans the ability to invest in the club in the not too distant future.

Donald said: “I am delighted that I have been able to transfer my debt to shares.

“The reality is that I already owned over 50% of the club so on a day-to-day basis it will make no difference at all. What it does mean for the fans though is that they do not have to worry about the club owing anyone any money, including me. They can relax, safe in the knowledge that funds are already in the club to continue building the infrastructure and to cover the next two years running costs.

“It is important to me that the fans know the club has no debt and that although we are spending money we are investing it to try and achieve sustainable success.

“It is clear it is not self-sustainable without my finances just yet. However, we have increased season tickets to almost 1,200 from less than 50 and have gates of over 2,000, up from around 500. This coupled with commercial revenues in excess of £1 million means that it is starting to make Eastleigh a much more viable model.

“There is a long way to go but by ensuring all the funds I invest are done so without creating debt, I know this will give Eastleigh FC the best possible chance of long-term success”.

Source: www.footballconference.co.uk