Detroit City FC is making even more history in the city of Detroit.
Thursday afternoon, news broke that the popular, grassroots club would be selling 10 percent ownership stake directly to the fans in an effort to raise $1.2 million dollars to help offset the financial hit the club took because of the ongoing COVID-19 pandemic.
“Detroit City FC, has grown over the past decade from a grassroots effort to bring together neighbors through the beautiful game to Detroit’s first professional soccer team in generations,” stated Sean Mann, DCFC Co-Owner and CEO. “None of the club’s success would have been possible without the support of the community that surrounds the club and that has constantly lifted it to new heights. As the club navigates through the current pandemic and economic crisis, and positions itself for success and continued growth for years to come, it only made sense for us to turn to our fans to shape our future. Our fans who have given so much to the club have a justified sense of ownership in its success, and now they have the opportunity to have a legal ownership stake in the organization.”
Fans can invest and become minority owners via WeFunder.com with minimum investments starting at $125.
Based on your investment, you will be entitled to anything from an invitation to investor meetings, meeting with the front office to voting on which charities the Club aligns itself with, and what kind of policies will be implemented at Keyworth Stadium. Meanwhile, funds generated through the 10 percent sale will be used for renovations to Keyworth, expanding the front office staff, and other COVID-19 expenditures that have accumulated.
According to an SEC filing, the club is reportedly worth $10.8 million but reported a long-term debt of $338,315 in the most recent fiscal year-end. Furthermore, DCFC also reported a net income loss of $452,499 in the most recent fiscal year-end, juxtaposed to a gain of $175,534 the prior year according to Crains Detroit. That financial loss again can be attributed to nothing but the COVID-19 pandemic and the inability to host fans at Keyworth during the Club’s first pro season. Look no further than in 2019 when Le Rouge won the Member’s Cup capping off a year in which the Club saw a $1.8 million dollar revenue signaling remarkable growth from the $170,000 made in its first year. Meanwhile, yearly attendance has increased by more than 100,000 to 111,600.
Detroit City FC now becomes the first pro team in Detroit to be at least partially owned by supporters while joining a growing list of pro clubs from around the World who have opened up ownership stakes to their fans. In the United States, the Green Bay Packers are probably the most well known pro team owned by fans while DCFC rivals Chattanooga FC are also owned by their supporters. Across the pond, La Liga giants Barcelona and Real Madrid also have at least some degree of fan ownership.
Among the investors for Detroit City FC is Iggy Pop who in addition to his monetary contributions, has also done some marketing for the Club.
