Support The Trust Bond Scheme:
Calling you football club owners of Stockport...
Q: Why did the Trust launch a Bond Scheme?
A: We launched a Bond Scheme to raise a self-set contingency fund of £325k to be used as a loan to Stockport County AFC Ltd if a case of need arises. It has been described by some as a "Rainy Day Fund" and the name has sort of stuck.
The way it is intended to work is that say, for example, due to frozen pitches, County are unable to play any games in December, January and February, the contingency fund would be loaned to the club in order they can pay wages during this period. Once any such period of crisis was over, any money loaned to the club in this way would be paid back into the contingency fund by Stockport County FC.
We believe a contingency fund to be the most sensible approach to safeguarding the financial future of the football club and avoiding increasing its financial burden.
Q: What is a Bond?
A: It is a loan of money to the Trust (and we stress NOT the football club) which will result in the person who “purchases” benefiting from interest and other financial return. Plus, with it being a loan, there is the prospect of the return of the money at some time in the future.
Q: How much does a Bond cost?
A: One Bond costs £50, and you can buy as few or as many as you can afford by setting the quantity in the payment pages if paying on-line using any major credit\debit card via PayPal.
Q: I’ve paid my money/made a pledge, what happens next?
A: Once the payment has been confirmed we will add your details to the Bonds database and send you a Bond certificate.
Q: How much does the Trust aim to raise?
A: At least £325k, but up to a maximum of £400k. £325k is roughly the amount of money needed to keep the club running in times when expected revenue is not generated. Bondholders will receive annual reports as to the position of the fund.
Q: Is there a risk of losing some or all of my money?
A: Yes. We have to be honest there is the chance that if County struggled financially they would have to call upon this contingency fund for resources. It would be hoped that the club would subsequently repay what they loan back into the contingency fund, but should they be unable to repay any or all of the loaned amount, the money would be lost.
However we are confident that this would only happen in a worst case scenario. In days gone by, when the club was regularly making an annual trading loss in excess of £1m it would have been extremely unlikely that the club would be in a position to repay any such loan, but thankfully, that is no longer the case.
Q: Is the Bond a good financial investment?
A: Again we have to be honest and say that, in strict financial terms, no, this is in fact a high-risk investment. If you are looking at making a "fast buck" you will be sadly disappointed. You will get a small amount of interest on the investment but, more importantly, you will have the knowledge that you have contributed to the saving of your football club.
Q: What is the interest payable on the Bond?
A: We are setting this at an annual rate of 1% of the face value of the Bond (or in simple terms 50p per Bond per year). This interest will be allowed to accrue until 2015. Not a vast amount in all honesty, but then again we like to believe that you are investing in Bonds because of your love for County and not because you want to get rich quick. Investors should realise that the fact that if they get any interest at all, it is better than getting a poke in the eye with a sharp stick.
The rate of interest that the Trust gets from the Vernon Building Society is actually more than 1%, but the surplus money will either be used to fund any windfall payments that may be made to Bondholders or, if no windfall payments are made, it will be invested in the football club. The Trust cannot and will not make a profit from this scheme.
Q: What is this windfall payment?
A: It’s the dream scenario, the scenario which will see County safe financially and possibly your bond paid back, it’s that big cup run or big televised cup tie.
The Trust has created a business plan which assumes that we will have no success in the cup competitions, so if we do defy the odds and progress, we’d like Bondholders to benefit as repayment for the support and faith they’ve shown. The amount that will be paid depends on what net profit the club makes from progressing further than the first round of the cup competitions. Bondholders should receive 0.003125% of this net profit for every Bond they hold. It's peanuts in an ordinary season, but just imagine what the bonus would be if County managed to reproduce the form of the League Cup run of the 96/97 season.
The Trust will publish detailed match accounts in the eventuality of a cup run.
Q: How do I go about buying Bonds?
A: Simple really - there are just 2 steps:
Step 1 - Make sure you have read and fully understand the Terms and Conditions of Trust Bond Scheme. Once your payment for Bonds has been paid into the Trust Bond account at the Vernon Building Society it cannot be refunded. Do not purchase any Bonds if there is anything you are unsure of,
If you have need further clarification or have any more questions about the Trust Bond Scheme you should either use the Ask a Question facility available on this website, email info@stockportcountytrust.com or write to:
The Trust Bonds Scheme Custodians
Stockport County Trust
Edgeley Park,
Hardcastle Road,
Edgeley,
Stockport, Cheshire,
SK3 9DD
Step 2 - Fill in a copy of the Bond Purchase Form and send it, together with your payment (£50 per bond) to the address given at the bottom of the form. Alternatively just select the Add to Cart button elow to go the the Bond Purchase pages of PayPal:
Once the Trust receives confirmation from the Vernon Building Society or PayPal that your payment has been received, you will be sent certification of your bond holding, together with a copy of the Trust Bond Scheme Terms & Conditions.