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Mbongeni Ncube
Hell NO!
Highlanders Football Club is moving swiftly to avert a hostile takeover from ruthless cash barons.
This comes after the team leadership agreed to a constitutional reform to block the sale of the teama��s shares to the general public.
The amendment comes into full effect in January 2017 according to current CEO Ndumiso Gumede, a�?to secure the future of the cluba�?.
At the moment the cluba��s Constitutional Reform Committee is engaged in consultative meetings. Two weeks ago they reported back to Gumede to update him on developments.
While they are moving to avoid Bosso being a public listed company, Gumede said the man to take over from him in five months time wona��t be the ultimate decision maker.
a�?The new CEO that will come after me in about four months will have at least four or five managers to take care of the different business aspects of the club like finance and administration,a�? said Gumede adding that they seek to reduce the command of power within Highlanders.
The board of directors at the club will also be a thing of the past come 31 December 2017.
In essence Highlanders is avoiding a kind of ownership whereby ownership in the club or company will go through a process called an initial public offering (IPO).
Once the shares areA� issued, they can be bought and sold on a secondary market between any individuals or organisations that want to own them. The share price fluctuates in value constantly, depending on the expected outlook of the club and the expected return on investment.
Having a sports business that is publicly traded presents its own unique risks and challenges.
Failure on the field means the stock price can take a hit, which can wipe out net-worth overnight.
On the other hand, success can drive the price up and make owning a slice of the team a valuable asset.
Most clubs in the world have traditional ownership schemes, but some of them have made an IPO and are now listed on stock exchanges around the world.
Teams such as Manchester United, AS Roma and Juventus to mention a few have this system in place.
However, it does not mean Highlanders is totally shutting the door on outside investment.
Members agreed to cede 40 percent of the total shares for the club academy to outside investors, while the club retains 60 percent.
Online Reporter