Dundee FC set to wipe out debt with £9 million shares plan that could open door for Burnley investment

The Dark Blues will hold an emergency general meeting (EGM) of shareholders in early June.

By Sean Hamilton

May 17 2024, 11:12am

Dundee chiefs Tim Keyes (left) and John Nelms (right). Image: SNS.

Dundee FC have called an extraordinary general meeting (EGM) at which shareholders will be asked to back a £9 million shares plan that could open to the door to investment from Burnley.

Dark Blues stakeholders have been called to the meeting, set for June 3, at which they will vote on two resolutions designed to allow owners Tim Keyes and John Nelms to convert £9m of debt to equity, in the form of shares.

This will effectively wipe out club liabilities and could also pave the way for inward investment from the owner of partner club Burnley, ALK Capital.

The Clarets and the Dee announced a “strategic alliance” in January, with the English side sending four players to Dens Park on loan over the course of the season.

Dundee managing director John Nelms was joined by Burnley chairman Alan Pace in the stands at Livingston. Image: SNS — Dundee managing director John Nelms (centre right) was joined by Burnley chairman Alan Pace (centre left) in the stands at Livingston this season. Image: SNS

Burnley chairman and ALK Capital boss Alan Pace did not rule out acquiring a stake in Dundee when questioned.

Should club shareholders vote through the proposed debt conversion plan at next month’s EGM, where they will have the chance to question managing director John Nelms, the now English Championship club may be encouraged to solidify their links with the Dark Blues.

Dundee secured a superb top six finish on their return to the Premiership this season, yet did so against a backdrop of major losses.

Owners reaffirmed commitment to club

The club’s most recent accounts, released last month, showed a deficit of £2.8m from their promotion season.

Keyes and Nelms’ Football Partners Scotland company, through which they own Dundee FC, covered the shortfall and the duo subsequently reaffirmed their commitment to the club.

Their new debt conversion plan could be read as further reaffirmation of their position as they await a response from Dundee City Council to their planning permission in principle application for the club’s proposed new stadium at Camperdown.

Concept image of Dundee's new stadium at Camperdown Park. Image: Holmes Miller Architects — Concept image of Dundee’s proposed new stadium at Camperdown Park. Image: Holmes Miller Architects

Company secretary Lindsay Darroch said: “The announcement this morning of Dundee Football Club calling an extraordinary general meeting is to allow shareholders to vote on resolutions that will allow existing debt to be converted into equity and also allow for further inward investment into the club.

“If approved by shareholders, this will enable Football Partners Scotland to convert loans into shares and allow them to make and to seek from others further investment into the club.

“This motion further illustrates the current owners’ long-term commitment to Dundee Football Club.”