Gloucester Rugby secure £300k fan investment at £36.5m valuation
Gloucester Rugby have raised £300k from a fan investment cycle at a valuation of £36.5m as investment in the Prem continues.
With 23 days left on their public raise, the Prem Rugby strugglers have achieved a fresh goal of having £300,000 in commitments.
The 122 investors have pledged an average of over £2,500 apiece but the revised comes after an initial release in October listed a goal of £500,000.
Hosted by investment platform Europe Republic, Gloucester was valued at £36.5m ahead of the raise with majority owner Martin St Quinton confirming investors will become shareholders with full rights. A share cost £4.08.
The fund raise, albeit minimal, comes amid a flurry of capital raises across Prem Rugby from sources outside of the group of individuals who have kept England’s top flight alive for 30 years.
Gloucester Rugby not the first
Energy drinks tycoon Red Bull last year invested in Newcastle before hoover magnate Sir James Dyson made a significant investment into champions Bath as part of a debt for equity swap.
Northampton Saints, too, confirmed a hefty minority raise in the club from rugby fan Steve Zander, who is now on the board.
And 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.
Morning Wire revealed that the shift in investment attitude to the Prem has filtered down to the second tier Champ, with four clubs having discussions with investors, while London Irish are ready to list on the same Republic platform as Gloucester.
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 [recently] 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.”