Bournemouth Fans Invest in Sipp
Fans of Bournemouth football club have attempted to use a group investment SIPP fund to buy Dean Court stadium and its surrounding land.
The plan was to help the football club pay off its debts, which is believed to be in the region of £6.5 million.
With Revenue & Customs maintaining that the southern football club is required to pay £500,000 by the end of November, the club directors are now turning to their major shareholders to reach a faster alternative.
The other idea would be to sell the clubs ground to a property investment company for the region of £3.5 million and leasing it back.
Dave Stone, a director at Bournemouth who also works as an independent financial adviser, had been working towards using a group investment SIPP – Self Invested Personal Pension – to bail the club out of debt.
Having supported Bournemouth since a child, Stone proposed a target of £2 million from people willing to commit some of their private pension savings for at least 10 years in what, for them, would be essentially a property investment.
Yet, the government is presently looking into ways of regulating SIPPs, which would make the Bournemouth fans’ scheme more difficult.
New investment rules, which begin on "A-Day" in April 2006, dictate that SIPPs will be able to borrow only a further 50 per cent of the cash invested, not 75 per cent of the stadium price which is presently allowed.
Hence, the target for the Bournemouth SIPP investors to raise will rise to something closer to £4 million.
Unlike Chelsea, Bournemouth are yet to find a capital rich Russian to buy shares in the club.
Date: 11.11.05
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