Status: 24.09.2024 19:30
Mini investors instead of major investors: FC St. Pauli is the first professional football club to set up a cooperative. Fans in particular are to become members and can buy shares in the Millerntor Stadium. The launch is scheduled for mid-October. The club is hoping to raise up to 30 million euros.
“We have always wanted to find a form of financing that really suits us as a club,” says St. Pauli’s commercial director Wilken Engelbracht. The optimal solution from the Bundesliga club’s point of view: a cooperative. A form of financing that is considered grassroots-oriented, democratic, sustainable and particularly crisis-proof. In future, it will not be one large investor, but many mini-investors that will drive St. Pauli forward economically.
St. Pauli hopes for up to 30 million euros
The new cooperative sells shares for 750 euros each plus 100 euros subscription and administration fees. St. Pauli expects that 20,000 to 30,000 people will buy one or more cooperative shares. This should raise up to 30 million euros. With this money, the cooperative will take over the majority of St. Pauli’s stadium operating company and thus the Millerntor Stadium.
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Expand infrastructure and repay loans
The model has several advantages for St. Pauli. The most important points: The money from the share sales can be used to launch new infrastructure projects, such as the new training center. In addition, old loans can be repaid early. This would eliminate the heavy financial burden of high interest payments to banks.
“The idea that all fans together – each with an equal voice – support the club financially is great and unique in football.“Cooperative Board Member Andreas Borcherding
Currently, loans totaling 15 million euros still have to be repaid for the new construction of the Millerntor Stadium, which was completed almost ten years ago. In addition, there are further loans from the Corona period. In the last financial year, St. Pauli posted a loss of almost five million euros, partly due to the high interest burden.
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Only one vote, no matter how many shares
St. Pauli also wants to send a signal with the cooperative. The “Football Cooperative St. Pauli” (FCSP eG) is intended to be an alternative to the power of major investors and the sell-off of professional football. “The idea that the fans jointly support the club financially is unique in football,” says cooperative board member Andreas Borcherding. With a lot of money you can buy a lot of shares in St. Pauli’s cooperative – but that doesn’t give you any more influence. Each shareholder has exactly one vote, even if they own several shares.
Will other clubs follow suit?
There is already huge interest in the idea. FC St. Pauli was inundated with registrations for the first information event on the new cooperative. Other professional clubs are also closely monitoring the Millerntor Club’s project. Engelbracht sees St. Pauli’s pioneering role as positive: “We don’t want to be the only club with a cooperative and we are very interested in others following suit.”
“Emotional” and real returns
The cooperative is intended to be a solid investment for the shareholders. The income from stadium leasing and special events can be estimated. The same applies to the expenses for ongoing operations. St. Pauli therefore expects the cooperative to generate a return. Shareholders can expect interest of around two percent.
The launch is scheduled for mid-October
In addition, there is what the club calls an “emotional return”: From mid-October – the club’s preferred date would be October 19th, in line with the founding date – St. Pauli fans and members will have the opportunity to purchase part of “their” stadium. The subscription period will run until next spring, assuming the cooperative shares are not sold out before then.
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Hamburg Journal | 24.09.2024 | 19:30
