Dunfermline Athletic has outlined plans to offer supporters shares in the club in a bid to raise up to £500,000.
The East End Park outfit have faced a serious cashflow crisis in recent months and players and staff have seen delays in their wages as a result, amid suggestions the club is teetering on the brink of administration.
Despite its well-documented problems of late, however, the Pars believe the launch of a share issue will not only ease the current financial pressures but could be the first step towards fans having a greater say in the running of the club.
The plan is similar to that recently announced by Hearts, although the Pars’ fundraising target of between £300,000 and £500,000 is considerably smaller than the £1.79 million set by the Edinburgh club.
Should there be a successful sale, Courier Sport understands that owner Gavin Masterton’s holding in the club will drop from 95% to 75%, while Masterton has also promised to review the club’s management structure to involve fans more in its decision-making processes.
Chairman John Yorkston, who is due to step down at the end of the season, revealed the club shortly intends to issue a formal document that will detail the proposals.
”Dunfermline Athletic is at the centre of people’s hearts and minds in West Fife and a long way beyond,” he said.
”The club is 127 years old and has had many ups and downs but this generation of fans has seen some unbelievable successes from older supporters with memories of the glory days of the 1960s, to younger fans who themselves have experienced cup finals and league championship victories.
”We need our fans to support us now more than ever and if they do support the share issue, we can all enjoy the successes that it can bring.”
It has also emerged Dunfermline’s first-team squad have held talks with players’ union PFA Scotland as they contend with a second straight month of wage delays.
Union chief executive Fraser Wishart and communications officer Jack Ross visited the club’s Pitreavie training ground to spell out the union’s advice for the players, who saw their October wages staggered and have only received a portion of their November wages.
After having to wait until November 24 for their October wages in full, the Pars players were then told last week that they would receive an initial instalment of just 25% of their November salaries a figure that rose to 37% following an unexpected payment the following day.
The loss of SPL status, which has cost up to £1 million, combined with a fixture list that has provided just six home league games up to December 15, have been cited as the major reasons why the club has faced a cashflow crisis, although the club insists it hopes to be on a more sound financial footing following three home fixtures over the festive period.
A club spokesperson said last night it has already made ”considerable strides” towards reducing its operating costs and was ”well on its way” to ensuring a break-even position at the end of the year largely through increased commercial activities at East End Park.
”While the proceeds of the Share Issue will enable us to bring ourselves completely up-to-date with HMRC and regularise our position with creditors, we also want it to support Jim Jefferies and his team in their drive to progress to the SPL, and to help fund other activities such as the continued improvement in the youth set up at East End Park,” the spokesperson continued.
”This is also the first stage in our drive to create greater fans’ involvement in the running of Dunfermline Athletic and that’s why we would like, right from the start, to get fan participation in the promotion of the share issue.”
It is understood officials had an initial meeting with representatives of affiliated supporter groups on Thursday to discuss the current crisis.
A working party comprising nominees of those supporter bodies, alongside representatives of the club and its auditors, will now be set up to take the project forward.
”The club still has a huge financial hurdle to overcome, particularly with HMRC, and are urging fans to continue the immediate fundraising efforts and do everything they can to get a sizeable crowd to East End Park this Saturday,” the spokesperson concluded.
”They have been heartened by the show of support in every sense and if this continues together with the income generated from forthcoming local derbies, Christmas parties and sales, there is confidence that the club can pull through this period.”