Shared Ownership - an Illustration
How the Arsenal Fanshare society could look over a four month period when 1000 members each invest £10 per month. (ignoring the 2% deduction towards the Arsenal Fanshare costs and £20 joining fee)
Solid build up as 1000 fans each invest £10. That's £10,000 in the Fanshare kitty. Now the cost of buying one share in Arsenal Holdings PLC on the stockmarket in this example is somewhere around £15,000 (one thousandth of this would be £15). No member has enough for one thousandth of a share yet.
Goal! Each member now has £20 available for investment, enough to buy one thousandth of an Arsenal Holdings Plc share. There is £20,000 in the Fanshare kitty. Arsenal Holding Plc share is bought (at £15,000) and is then divided into 1000 Arsenal Fanshares. One Fanshare is added to each member account. Each member also has a remaining cash balance of £5
Each member now has £15 available for investment, and with the price of a share remaining at £15,000 another share is bought and a further Fanshare unit is added to each member account.
A Few Things to Remember
The value of an Arsenal Holdings PLC share is not exactly £15,000, and changes from day to day based on stockmarket trading. Consequently, the price of an Arsenal Fanshare is not exactly £15, and also changes from day to day.
Our illustration was based on 1000 Members all deciding to invest £10 per month each. In reality, there is no minimum or maximum number of Members in the scheme, and each Member will decide for themself how much to invest. So while one Member may invest £10 per month, another might invest £100 per month. In writing the illustration above, we have kept things simple by treating all the money you invest as if it goes towards the purchase of Fanshares in your name. In reality, the Arsenal Fanshare scheme is professionaly administered by the specialist shareholder-plan management company Equiniti and the costs of administering the scheme and handling the financial transactions involved are met by a 2% charge on all money you invest.
This means that if you invest £100 into your account each month, £2 of it is deducted as admin fee, leaving £98 in your account to go towards your Arsenal Fanshares.
See exactly how your Arsenal Fanshares account might look with administration charges applied.