Gloucester Rugby has secured £300,000 from a supporter fundraise at a valuation of £36.5 million, as investment in the Premiership continues. With 23 days remaining on their public fundraising campaign, the Premiership Rugby strugglers have reached a revised target of £300,000 in commitments.
The 122 investors have committed an average of more than £2,500 each, though the updated figure follows an initial launch in October that set a target of £500,000. Hosted by investment platform Europe Republic, Gloucester was valued at £36.5 million prior to the raise, with majority owner Martin St Quinton confirming investors will become shareholders with full rights. A share costs £4.08.
Wave of capital injections across Premiership Rugby
The fundraising exercise, albeit modest, arrives amid a wave of capital injections across Premiership Rugby from sources beyond the group of individuals who have sustained England's top tier for three decades, as reported by City AM. Energy drinks giant Red Bull last year backed Newcastle before hoover magnate Sir James Dyson made a substantial investment into champions Bath as part of a debt-for-equity swap.
Northampton Saints, too, announced a sizeable minority stake in the club from rugby supporter Steve Zander, who now sits on the board. And later this month at an EGM, Exeter Chiefs are anticipated to approve a takeover proposal from Black Knight, the consortium featuring Oscar winner Michael B Jordan that owns Premier League side AFC Bournemouth.
City AM has revealed that the shift in investor appetite towards the Premiership has trickled down to the second-tier Championship, with four clubs currently in talks with potential backers, while London Irish are preparing to list on the same Republic platform as Gloucester.
Owner confident in club's future
Announcing the new fundraising drive, St Quinton – who owns the club alongside minority stakeholders Tim Griffiths and City fund manager Jack Ingles – commented: "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."
