WITH Saints doing well and the team shaping up for Saturday's big match, there's still a dearth of fans wanting to own part of their club.
Keith Field, the man responsible for the Southampton office of stockbrokers Charles Stanley & Co, is quick to point out: "Share ownership always carries risk and having shares in Southampton Leisure will not be suitable for everyone. "However, as Saints are having their most successful season for many years, I do find it surprising that the current interest from supporters in buying shares in SFC is lower than I have seen it before.''
Main investors in companies are usually institutions, like pension funds and unit trusts. Individual investors often form a small portion of the shareholders.
"Football clubs tend to have a different make up. Many supporters like to have an interest in their club,'' said Mr Field. "If supporters want to have a real voice in the running of their club, then they need to own shares in it.''
The Saints team is part of Southampton Leisure Holdings and share ownership is roughly split so that 15 per cent is in the hands of institutional investors 20 per cent, owned by the directors and 65 per cent is spread among others. A
number of major privately held shareholdings arose when Southampton Football Club became part of Southampton Leisure Holdings.
Said Mr Field: "The shareholders appoint the chairman and the directors to run their company on their behalf. It is the duty of these executives to create a prosperous and growing business, managing its resources effectively to provide a profitable end product. Dangers arise if the executives of football clubs try to make dreams come true by forgetting the rules of good business sense.
"At the moment it is an extremely difficult environment for clubs. There is little investor confidence and this has pervaded through to the fans on the terrace. New TV contracts, new European laws governing player contracts and mobility and player costs leave most supporters uncertain about the future of their clubs.
"However, it appears that SFC is being well run by people who have their feet on the ground. If the club can use its new-found revenue and increase its squad of players to be reasonably competitive in both Europe and the domestic competitions then it should strengthen its standing in the game. Of course, it will need to manage player wages and fees wisely, but sound financial management will increase its attractiveness to shareholders.
"Perhaps the current uncertainties will be a catalyst for sounder finances in all clubs and greater realism. It appears that investors will continue to stay away unless this new realism happens.''
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