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English football club Watford has put 10% of the outfit up for sale for £17.5 million ($22.4 million) to fans and investors, in a bid to raise revenue and strengthen the squad.

Unique Ownership Opportunity

Watford, which plays in the second tier of English football, announced on Tuesday that it aims to become one of the first major English clubs to offer ownership to fans and investors alike. This move is part of a broader strategy to engage with its supporter base and diversify its revenue streams.

Investors in the EFL Championship club will not receive voting rights. However, they will be entitled to discretionary dividend payments, contingent on the club's financial performance.

Watford to sell 10% of club to fans and investors :  Investment Details

The online investment platform Republic is hosting the program. Republic, based in New York, has significant experience in digital equity offerings, having collaborated on similar projects with other English clubs, including AFC Wimbledon. Shares will be available for purchase on both the Republic platform and Seedrs, its crowdfunding platform in the U.K. and Europe.

"Capital raised from the sale will be used to fund initiatives that will improve the performance of the club's teams, particularly the men's first team, in areas such as the recruitment of players, training and coaching, and will also help to further develop the Watford FC brand," the club stated.

Benefits for Investors

Investors can expect various perks, including priority ticket access, private tours, and special access to select stadium areas and unique match day experiences. The price per share is set at 1,244 pence, with a minimum investment of four shares at 4,976 pence for those purchasing through Seedrs. Investors will need to buy a minimum of eight shares through Republic, totaling 9,952 pence.

Shares can be purchased with both traditional money and cryptocurrencies but can only be traded after a 12-month holding period.

Watford to sell 10% of club to fans and investors : Financial Health

Watford, located in southeast England, reported healthy finances, generating revenues of £66 million and pre-tax profits of £24.1 million in the 2022/23 football season. These figures are claimed to be the highest outside the English Premier League.

Potential investors were able to pre-register their interest on Tuesday, with the deal going public on Thursday.

Watford were relegated from the Premier League at the end of the 2021/22 season but claimed £41 million in parachute payments to compensate for lost revenue in their first season in the Championship. The club, owned by Italian businessman Gino Pozzo, did not immediately respond to a request for comment.