FC United of Manchester has seen a rise in investment since becoming the first ever club to issue community shares.
The club launched the community share initiative less than two months ago to help raise funds for a new stadium and has already seen shares top £500,000.
In a further boost for the Evostik Premier side, HM Revenue & Customs has given provisional assurance that those who buy £500 of shares can claim 20% back against tax under the Enterprise Investment Scheme.
Since its set up five years ago by discontented Manchester United fans, FC United has been playing home games at Bury FC’s ground. The proposed 5,000 capacity stadium will provide the club with a permanent home close to Manchester United’s birthplace Newton Heath.
Football Trade Directory reported last month how Preston based Frank Whittle Partnership has been appointed as project and cost managers for the £3.5million development.
Andy Walsh, FC United general manager, said: “We are delighted with the response to the community share issue, which has attracted both ordinary fans and wealthier investors alike. The tax relief alone offers a significant financial benefit – equivalent to a return of 6.5% for the first three years – and after that we aim to pay interest on the shares. Investors will also have the satisfaction of knowing that in raising funds for the stadium, they will be helping to secure the future of FC United and offer major social benefits for the local community.
“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.”