Training ground bonds | Vital Football

Training ground bonds

G

GrotierBranfootLeigh

Vital Squad Member
As it's a free Saturday I've been going through some accumulated paper mail. One was a letter from the Club inviting shareholders to the AGM. In the envelope was another letter from Kevin Cooke about 'Training Ground Bonds'.

When I first saw this I didn't give it too much attention, not having much spare cash, but reading the detail I started to take notice. The minimum investment is only £1000 and the interest rates offered are far superior to what banks are currently offering. They range from 2.5% after one year, rising gradually to 3.5% after 5 years.

This seems a very good investment, helps the club, and also gives other benefits such as discounts on season tickets and invitations to events at the ground.

The only possible drawback could be a risk of losing the initial investment if disaster struck, but I understand that earlier bond issues were well underwritten and hopefully this one will be too.

I'll be interested in other people's views.
 
I don't follow it too closely and haven't read the bond blurb but there is a lot of uncertainly around interest rates - I'd definitely want to research what longer term interest rate predictions look like and then allow for the fact they could be wrong - especially the longer term options.
 
Some very basic initial questions if investing:

What name is the Bond in?
Is that name: Lincoln City Football Club?
Is the Bond security: the Freehold interest in the Training Ground?
Is the Training Ground owned 100% by Lincoln City Football Club?
Will the Bond issue be supported by a professional valuation that supports the total property value?
At the end of the term will you be able to take back the amount of your "investment" without charge or a capital reduction?
Is the interest level fixed, or variable?
 
Sounds like the land has been purchased and finalising completion. Apparently Liam Scully mentioned this before last night game, and also today on Radio Lincs Danny mentioned it on today’s show. Not heard either but sounding very positive.
 
I've got the same paperwork. Looks like those investing will also get to visit the site to watch a training session and be invited to a club dinner.
 
The Bank of England will soon be raising interest rates again and everyday banks will therefore be putting up their interest rates to savers. My wife currently gets 3% with HSBC on her current account and I already get 1.5% on my Santander account which should also soon rise to 3%.

I'm not suggesting for one minute that people don't invest in these bonds, but I am saying consider all aspects carefully.
 
Yep. The interest rate is only any good if you are looking for larger investments really. Most of the banks are offering that sort of return on the first £2,500 or so in the account.
 
Impalex - 10/2/2018 23:43

The Bank of England will soon be raising interest rates again and everyday banks will therefore be putting up their interest rates to savers. My wife currently gets 3% with HSBC on her current account and I already get 1.5% on my Santander account which should also soon rise to 3%.

I'm not suggesting for one minute that people don't invest in these bonds, but I am saying consider all aspects carefully.
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The banks won't necessarily increase their rates for savers. They didn't after the last small interest rate rise, for example, but of course *did* raise the rates for borrowers, mortgages etc.

With the economy still flat-lining and relying hugely on consumer spending (and consumer debt - back at pre-crash levels, folks), nobody wants people actually saving money (although the government may pay lip-service to this).

Not that many of us have a whole lot to salt away in any case...
 
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