First question is from Paul Tate in Tblisi

Our target in the Community Shares Offer is £100,000 by the end of May.

It says in the prospectus that people's money will go into a separate bank account administered by the DFCSG and only if the target is met will that money be used to buy shares but, as I understand, people are currently pledging to buy shares and only if the target amount is met at the end of May will people then be asked to pay for their shares.

My question is really to find out whether people who have opted for the Bank Transfer payment method can (or might it be a good idea to ask them to) transfer their money into this account before the target date in order to minimise the work needed to chase people up after the closing date and also provide the Supporters Group with a more accurate picture of what cash we have in hand (both in this account and via the GoCardless Direct Debit option) against the target amount.

I ask this because there is a cooling off period of 7 days after the closing date so it's possible that some people might change their minds leading to a situation where the amount raised from actually selling shares might be less than the £100,000 target.

Answer

It’s a good question, however the decision was made due to the overhead that would be required to take the money and then return it if necessary should the offer not be successful – tracing bank transfers back to investors can be a painful process. It has also allowed those who don’t necessarily have all of the money right now to still put their full pledge forwards as they do not need all of the cash at this moment in time and can plan forwards for future paydays. I’d say it’s unlikely, given the emotive nature of the initiative that there will be a huge amount of pledges that aren’t fulfilled. I’d also be reasonably confident that we could plug, what we believe would be a small gap.

Maybe a compromise would be to contact the individuals around 14 days before the end of the offer window when we have a reasonable indication if the offer will be successful and ensure that they will have the cash available 7 days after the offer closes on 31^st May, or request them to re-evaluate their pledge which is quite easily done on the online system.

Second question from Paul Tate

While it's good to see that the total raised is still rising we also experienced a sharp initial surge with the CrowdCube fundraising campaign in 2012. Actually this was much larger than the current amount and with a much greater number of individual investors but I remember that there was a two shares for the price one offer on the table for Stage one of the campaign and we were also riding on a wave of great publicity (and empathy) at that time, so that could partly explain the larger number of investors and amount pledged.

Also there was no need for people to also become members of either the Trust or the Supporters Club (the forerunners of the Supporters Group) and I think this will have also played a part in raising the numbers of individual investors - whereas now we necessarily are targetting people who are also open to the idea of joining the DFC Supporters Group but this could be a barrier preventing ordinary supporters of other clubs from investing in our club.

Did we learn any lessons from our previous campaigns to avoid a situation arising where people might think that fundraising has stalled - perhaps by encouraging some known larger investors to wait until the initial surge is over before chipping in to keep the total rising at a rate which suggests we will comfortably meet our target, or do you have some PR plans ready to roll out to help keep things going in the right direction?

answer

In regards to the CrowdCube investment, true the initial surge was larger but the target was also considerably so. It was also the first real call for cash that the club had made for some years and the purpose of saving a full-time professional club which had existed in the town for over 120 years was probably a much bigger pull that the current reasons for fundraising however important we as fans know it actually is. Since 2012 our fan base has also dropped considerably by being out of town and it’s much more difficult to connect to these people that possibly haven’t seen us play for 4/5 years since leaving the Arena.

It is true for any fundraising activity that has a defined end date that you will experience a surge at the beginning and end and a lull in the middle so the slow-down is to be expected. However, we need to add less than £1,000 per day to hit the target and even though pledges have slowed down things are still ticking along. There are some significant milestones that will shortly be happening which we hope will provide spikes of investment and also allow us to spread some positive PR on the back of. At the moment a lot of the PR has been below the line so to speak and we have managed nearly half of the required amount for the Community Share offer to be successful. I’m confident once we make more of a song and dance of things now the initial rush has slowed we’ll pick up more pledges.

Indeed, coverage on local news in 2012 helped us massively and whilst we’ve had some exposure during the BM announcement it was never specific to fundraising. The trouble is, at the moment there isn’t really much of a story to be there as we’re well on our way to getting the required funds. Should we still be short with a couple of weeks to go there is much more of a story that we can get the local media involved with.

It’s important to note Richard Cook’s comments at the fans forum regarding everyone being responsible for drumming up PR and getting their mates to buy in. We have a limited resource at both the Football Club and the DFCSG in order to be able to action a lot of great ideas that we get, and even if we did you can’t beat the personal touch – look at the Chris Wilsden story where he has encouraged mates from the USA to part with their hard earned cash. Even with an army of people we’d never have achieved investment from those individuals, but Chris has taken Richard’s words literally and made a huge difference.

A great idea we’ve had fed back is to pull together a hand-out to be distributed to the 1,000 + fans that are coming through the turnstile each home game as clearly more than 90% of them have not invested – why is this? Do they not know what’s happening? We need to try and understand that before we even look at anything else as there is a captive audience there that if we can tap into even 30% reaches our goal. Again though, resource to pull together and distribute material and then consult with the individuals is scarce – some matches we struggle to get enough volunteers to run a raffle!

At the moment the scheme has only really appealed to Darlington FC fans despite it potentially being a great investment opportunity for the wider community. Where else can you potentially receive a 130% + return on your investment in 5 years? If we get the 90% shareholding and qualify for the EIS tax relief it becomes a great investment opportunity and better still the 30% profit is not coming from the football club but the government so it’s win-win for us all. Once those are in place we’ll be making as much noise as possible in that regard which will hopefully give late impetus to the push.

Unfortunately the rules of which Community Shares are issued on state that the investor must be part of the society to invest, we offer a £2 per month DD plan which people can subscribe to very easily. We haven’t received any feedback thus far that having to be a member of DFCSG is prohibiting investment. Joining the DFCSG itself is vital if the club is to prosper anyway - we have some work to do on convincing people this is the case but this is going on in the background at the moment and will be the next big thing you see from DFCSG. The business plan we have is built on increasing membership in DFCSG so getting member numbers up to at least the amount of people who come to watch home games is imperative.

From David Hooper

What's the position regarding companies that will be making improvements at Blackwell Meadows, are they able to begin work immediately you say the word?

Currently to satisfy the FSIF, we must have three quotes for all pieces of work (even the fencing) and this information is currently inhouse. In the next couple of weeks, we will make a decision on which company we’ll appoint.

From Colin Bromley

Question: The level of investment in the share scheme so far has been outstanding. Of those that have pledged, has there been any interest / investment from local businesses, above and beyond our usual sponsors?

Currently, most pledges are from individuals, we are looking to how to get the message out to companies within the community, and are working on some ideas.

From Roy Elliott

I have just joined the supporters club and I am investing in the club to get us back to Blackwell meadows.

However I remain concerned over the lack of information regarding what the Rugby club are bringing to the table.

The football club seem to have circa £400 -450 K.

I was led to believe the Rugby club were low on financial resources – I would therefore be grateful if you could explain how will this arrangement can become an equal share in financial input during the forthcoming months.

Answer

The overall scheme is around £900k, DRFC are responsible for the clubhouse refurbishment (including changing rooms) and car parking. Their funding is coming from the RFU, Sport England and other sources. Our share is approx £450k.

Derek Burnley

Could you tell me, please, will the ground capacity at Blackwell Meadows in September satisfy the requirements for National League North, National League and Football League Division 2? Thank you, Derek Burnley.

Answer: At first, the ground is going to be built to Category B, for National League North.

For National League, we will need to add more seats, and ideally more standing covered accommodation, and obviously more for the Football League. We are concentrating our efforts on reaching National League North standard.

Carolyn Liversedge

If we need to segregate a game - how will this be done?

Answer: Just as it is at Bishop Auckland. There are six turnstiles, the away turnstiles will be at the right of the clubhouse as you approach, and if necessary we will erect temporary barriers for games.

Carolyn Liversedge

I notice on the plans that there are some standing areas around the pitch in different shades of green. Can you tell me please what these are made of especially interested in the area next to the new seating stand.

Answer: Carolyn, I’ve absolutely no idea why there are different shades of green. This is down to the designer’s flair, nothing to do with 3G on anything like that. Standing areas will be upon concrete or tarmac, not grass.

Trevor Turan

Will the facility be available to extend membership of the Vice Presidents club ?

Answer

We will be delighted if the VP club were to extend for another year. Please contact John Tempest for details.

Dave O’Neil

I have a query regarding concession membership in relation to the above scheme. I am 60 on 9th July and was wondering whether I would qualify as a concession?

Answer:

As your birthday lands pre-season, yes, we will look at doing at concession rate.

Loads of questions coming through, many thanks

Chris Lupton

Will we be increasing prices next season? If so, what's the reason behind this? I would be in favour of keeping prices the same as I believe one of the main objectives of being back in town is to get the isolated support back on side and I believe putting some prices up will put some people off coming.

Answer

We have to run the club as a business, and ticket prices will be going up next season, which is why we are offering discounted packages etc now.

Mark Adams

At what level / league do you think the fan owned model will require the need for private investment?

Answer

There are lots of different models, some League Two clubs operate on a completely fan owned basis (eg FC Wimbledon, Exeter City, Portsmouth).

Paul Saxton.

Has there been any discussion on purchasing rain covers for the current ground and Blackwell? I'm just wondering if the cost of the covers outweighs the cost of postponements?

Answer

Even in this particularly wet winter, DRFC only had one game cancelled because of a waterlogged pitch, and with further work on the pitch, I don’t see this as a major problem.

Lee Dixon

Hopefully won't be a problem and we will reach the 100k CBS share target, however what contingencies for the club are in place if we don't achieve the target?

Answer

We are looking on the optimistic side at the moment and believe that we will reach our minimum target, but we will look at other opportunities in the meantime.

Lee Dixon

Who has 1st choice for seats at BM, I have a 500 club seated season ticket but bring my two sons (seated ST holders). If they can't sit with me then the seat is sadly probably no use to me?

Answer

We are currently looking at all the seating arrangements for BM.

Frank Jones

FSIF deadline was March 30th. Have we been approved for the grant?

Answer

Hopefully we will be making an announcement shortly

When can we expect the first work to start on Blackwell Meadows and what will it be?

Answer

In the next few weeks, at the moment we’re not 100 per cent what the first work will be . We’ll announce some sort of ceremony.

Assuming we start next season at Blackwell Meadows what average crowd figure will the board be using as a basis for next season's budget? Dave Mills has previously stated 1500.

Answer

Much depends on our overall revenue. Initially there will be a spike in crowds (curiosity, groundhoppers etc), and the attendance will become constant. We will be encouraging the next generation of fans to get involved.

The board have repeatedly stated that we are overspending approx £50k above revenue this season. This lines up with the £52k in working capital you are looking to raise. However we have drawn down £48k in escrow account. Does this not mean over the course of this season we will have operated with a deficit of £100k (not £50k)?

Answer

The deficit floats, we still have five home games coming up, so it could come down. The overall deficit is £52k, which obviously we’re hoping to reduce in the promotion run in. Gate revenue is very important, which is why we’re encouraging all our fans to bring a friend or member of their family, it makes a huge difference.

Martyn Horn

Is there a deadline for purchasing the one year extension to the five year tickets? If there is a deadline is it the same as for the share issue?

Answer

All fund raising initiatives close on May 31^st.

Sam Clarke

Have the clubs considered moving the pitch slightly further away from the clubhouse (eg 3-5m)? If it has been decided to keep the pitch where it is what was the reason for this? I believe moving the pitch would incur minimal costs and would allow a sufficient stand along the clubhouse side in future. If we don't do this I'm sure we will regret it in future.

Answer

A professional design team has looked at all aspects of the development.

Question

What protection is in place to ensure DFC has the option to play at Blackwell Meadows after the current deal reaches its conclusion?

Answer

We have a 22 year licence, we will consider that in the fullness of time.

Will DRFC receive a payment from DFC for use of the facilities at Blackwell Meadows?

Answer: Yes, of course.

Will DFC use Blackwell Meadows for training?

Answer: The team train at Longfield, and will continue to do so.

How will money raised via pitch side sponsorship, bar takings and rental of the facilities at Blackwell Meadows be divided between DFC and DRFC?

Answer: There is a confidential commercial agreement.

Do we have an agreement with Bishop Auckland FC to play at Heritage Park should Blackwell not be ready in time for the 1st game of the season?

Answer: Yes, as stated at the fans forum.

If DFC and DRFC both have home games scheduled for the same date, who has priority?

Answer: The football club as stated in our licence agreed with the Rugby Club.

Pete Ashmore

I'm interested in the community shares investment. I see from the recently published FAQ that the EIS tax rebate is only being offered to investors who pledge £500+ as "a reward". Does this not discourage smaller investors putting more into the scheme knowing they could reclaim 30% of their investment?

Answer

In terms of the EIS scheme, there is no minimum, but however to encourage investment, we have pitched it at £500.

Neil Johnson

Have the club contacted Tyne Tees or local BBC TV to better expose the shareholding scheme to the general public?

Answer: yes, Look North were at the forum last Thursday, and we had a five minute slot on Tuesday night's programme. Tyne Tees, Made in Tyne and Wear TV, the Northern Echo, BBC Tees and other media covered the partnership agreement. Star FM came to the fans forum.

The club’s media department is working very hard in publicising the club by various means, and utilising our various contacts and friendships built up over the years.

Have any initiatives been thought up for promoting DFC games with the neighbouring Skerne Park & Blackwell residents?

Answer Those people will be covered in our general publicity.

Frank Jones

How confident are you in yourself & the rest of the board's ability to balance the need for financial stability against a clearly very ambitious & demanding manager in Martin Gray?

Answer: Martin Gray understands that we need to balance the books just as Martin does for his own academy. That is why we are strongly encouraging more people to attend home games.

One of the much trumpeted benefits of a return to Darlington are "new revenue streams" that will open up. Do you have any firm commitments or interest from businesses, individuals, etc on this front?

Answer: Yes. We are following up lots of avenues and have set up a commercial team to look at all aspects of this.

Key Sponsor: From your recent prog notes John - "The DFCSG are also in talks with a key sponsor that could potentially take the club to the next level and I believe will be warmly welcomed by all fans and will prove our intent in taking the club forward."

Answer:

We are talking to a possible major sponsor and hope to have a decision within a fortnight. It will be announced on the official website, in conjunction with the sponsor concerned, when both parties are prepared to announce it.

Floodlights - adequate or in need of upgrade?

Answer:

We will need to improve the lights to category B, the lux value does not meet the standard require.

Do you expect to be able to staff BM, as we do now with at HP, on a volunteer basis?

Answer:

It will be a mixture of rugby club staff and football club staff on a voluntary basis.

Sam Clarke

Given DRFC are paying for the car park (please correct me if I have this wrong), who will receive the money generated from the car park?

Answer: As explained at the fans forum, the football club receive all the money from the car park, although there is a charge payable by the football club to the rugby club for the use of the car park.

Who will own the pitch and land that the stands will be built on?

Answer

Darlington Rugby Club – remember that we are tenants.

Will the clubhouse contain any DFC pictures/memorabilia?

Answer: Eventually

That's it everyone, thanks for mailing in tonight..

The next netcafe will be with members of the supporters group on a date to be announced, probably in a fortnight's time.