FC United raise £500,000

FC UNITED of Manchester, the breakaway not-for-profit club formed five years ago in response to the Glazer takeover at Manchester United, have raised £500,000 towards the development of its new stadium at Newton Heath two months after its community share issue was launched.

The club said that share sales were given a fresh impetus following the club’s first televised game when it beat Rochdale in the first round of the FA Cup.

The club is hoping to raise £1.5m from the community share issue to put towards the cost of developing the new stadium, which will cost £3.5m to build. Around £1.5m of this has already been pledged in grant funding and the club is hoping to raise a further £500,000 in donations.

The club said that it has also been given provisional assurance that anyone purchasing shares through the scheme should be entitled to reclaim 20% of the tax through the Enterprise Investment Scheme.

Shareholders will not receive interest payments or be able to withdraw their investments for the first three years after the club moves into the new stadium, but it aims to pay small amounts of interest after that date. The offer closes on November 30.

“We are delighted with the response to the community share issue, which has attracted both ordinary fans and wealthier investors alike,” said Andy Walsh, FC United general manager.

“We aim to raise as much as possible through the share scheme. We are confident that there are many more supporters and business people willing to invest and urge them to do so as soon as they can.

“As the first football club to raise money in this way, we are pioneering a new model in football finance. We are inviting investors to join with us to change the way football is run by putting supporters at the heart of the game and leave a lasting legacy for future generations.”