Gloucester Rugby have raised £300,000 from a fan investment cycle at a valuation of £36.5 million, as investment in the Premiership continues to grow. With 23 days left on their public raise, the struggling Premiership club has achieved a fresh goal of securing £300,000 in commitments from supporters.
Investor Details
The 122 investors have pledged an average of over £2,500 each. The revised target comes after an initial release in October listed a goal of £500,000. Hosted by investment platform Europe Republic, Gloucester was valued at £36.5 million ahead of the raise. Majority owner Martin St Quinton confirmed that investors will become shareholders with full rights, with each share costing £4.08.
Trend of External Investment
The fund raise, albeit minimal, comes amid a flurry of capital raises across Premiership Rugby from sources outside the group of individuals who have kept England's top flight alive for 30 years. Gloucester Rugby is not the first club to attract such investment. Energy drinks tycoon Red Bull invested in Newcastle last year, while hoover magnate Sir James Dyson made a significant investment into champions Bath as part of a debt-for-equity swap. Northampton Saints also confirmed a hefty minority raise from rugby fan Steve Zander, who is now on the board.
Later this month, at an EGM, Exeter Chiefs are expected to vote through a takeover bid from Black Knight, the consortium featuring Oscar winner Michael B Jordan that owns Premier League club AFC Bournemouth. City AM revealed that the shift in investment attitude to the Premiership has filtered down to the second tier Championship, with four clubs having discussions with investors, while London Irish are ready to list on the same Republic platform as Gloucester.
Owner's Statement
When announcing the fresh fund raise, St Quinton – who owns the club with minority stakes held by Tim Griffiths and City fund manager Jack Ingles – said: "Getting rid of the spectre of relegation has given a huge amount of confidence to commercial acquirers and sports investors around the world. You've seen the recent investment from Red Bull at Newcastle – they wouldn't have invested in Newcastle if there was any chance of Newcastle getting relegated – and the 50 per cent stake taken by Sir James Dyson in Bath Rugby, which is a fantastic endorsement of the future of Premiership Rugby. I am not making any promises, but I think this is a very sound investment in Gloucester Rugby."
