Football club uses crowdfunding

The first club in the UK to use crowdfunding as a means of raising revenue to improve facilities at its ground and grow its fan base has generated £10,000 in the first week. Scottish League One club, East Fife FC is using a novel form of investment that seeks to attract small sums from a large number of people to raise, up to £100,000 to fund the development of a new club shop, a bar/café and a 750 seater-stand.

The first club in the UK to use crowdfunding as a means of raising revenue to improve facilities at its ground and grow its fan base has generated £10,000 in the first week. Scottish League One club, East Fife FC is using a novel form of investment that seeks to attract small sums from a large number of people to raise, up to £100,000 to fund the development of a new club shop, a bar/café and a 750 seater-stand.

Under the scheme fans and members of the community will be asked to invest in one or more of the three individual development projects. In return they will receive one ordinary share in the club along with a range of benefits including season tickets, hospitality packages with access to players and the directors’ box and club merchandise.

The scheme is devised and managed by Squareknot, a Glasgow-based crowdfunding company owned by a group of entrepreneurial investors. They hope that successful implementation at East Fife will encourage other clubs across the UK to adopt it.

Investment targets will be set for the three projects agreed between the club’s management and fans’ representative. Raising £25,000 will see the club shop built; £50,000 will ensure development of the bar/café while £100,000 will result in all three facilities completed.

Crowdfunding has already been used by two lower league clubs south of the border, Darlington and Kettering Town, to stave off bankruptcy. The model used by East Fife is different in that it is designed to help financially stable clubs to improve facilities and attract new fans.