Basic principles of investment-patriotic project
FC Karpaty currently exists as Limited Liability Company. This legal form is only effective for enterprises with a small number of participants (shareholders) and with small capital circulation.
Due to considerable increase in number of shareholders of the newly-founded enterprise and serious increase of capital, bringing in of investments, both locally and from abroad, a memorandum between city, region authorities and club’s management was signed on March 18, 2009 with intention to create “People’s team FC Karpaty” joint-stock company.
This form of management wasn’t chosen casually – it’s the only way the club can become truly open to the people. A transition to joint-stock company is the beginning of new era for Karpaty. 2009-2010 is due to become a breakthrough season both in quality of management and quality of play.
What will change after FC Karpaty transition to joint-stock company?
Firstly, the owners’ structure will change. The most important, strategic decisions will be made by means of voting during general assembly. The decision-making scheme is set to become more balanced with this structure. In a new enterprise planning, management, control and analysis functions are due to be divided. Optimization of internal processes and making club activities maximally transparent are the other goals for the club management reform.
Creation of joint-stock company foresees shares distribution among four parties (25% to each): Regional and City Councils, the fans and FC Karpaty investors. Three of the parties will bring in property, and the fans will be able to buy their shares for a nominal price. The current FC Karpaty owner Petro Dyminskyy guarantees that the share price will be doubled the next day after joint-stock company creation. Moreover, FC Karpaty owner avouches by his own capital to each shareholder that in case of a share price decline he will buy them out on any given day. This guarantee will be written down in future “People’s team FC Karpaty” Regulation. Thus, the whole structure will gain complete control over the financial activity of “People’s team FC Karpaty”. It is by no means a financial pyramid since it is based on real money and communal property.
Secondly, a joint-stock company creation and a regulation capital increase will provide the club with necessary resources to reach self-sufficiency level in 3-4 years.
Thirdly, due to stable funding and constant budget growth in 1-2 years FC Karpaty will be able to participate in European competitions.
FC Karpaty transition to joint-stock company. Sports factor
FC Karpaty has already invested over 100 million dollars in the development of Lviv football. However, when we talk about the club, which has become the banner of Western Ukraine and set itself highest goals, it is not possible for a single investor to create such team. The club needs property through which the infrastructure could be developed. Creation of joint-stock company is patriotic project for the people, which will allow tens of thousands of children from Western Ukraine to play football.
In fact, FC Karpaty follow the footsteps of FC Barcelona, which already has a 134,000 regular shareholders (who play an important role in the activities of the team, because they elect the club’s president), investors, billions of income. On their shirts Barcelona players are promoting UNICEF, the World Organization for children, and not some unknown manufacturer. They pay 6 million euros annually to the organization. And all of the club’s profits are directed into infrastructure development.
Like Barcelona, FC Karpaty considers education and training of its own, home-grown talent - the most talented children from across Western Ukraine its strategic priority. Nowadays the club oversees its own Olympic Reserve School for children and youth, where currently over 700 children study. Each of them dreams to wear Western Ukraine’s leading team shirt in the nearest future. On September 1, 2008, 80 children from Lviv School of Physical Education have became pupils of the first Western Ukrainian Football Academy. FC Karpaty which as a long-time partner of School of Physical Education, provides it with financial backing and organizes children’s participation in tournaments abroad, has signed new agreement with the School. Artificial lawn laid on Lviv School of Physical Education football field is equal to the one that is used at Luzhniki Stadium in Moscow, which hosted Champions League Final in 2008. Academy pupils have all the conditions for comfortable living, education and recreation created for them. FC Karpaty has spent over a million dollars for football pitch and dorm repairs. The Academy’s main goal is to prepare players for Ukrainian national teams and FC Karpaty.
FC Karpaty transition to joint-stock company. Economic factor
JSC “People’s team Karpaty” project is the driving point for economic development of Lviv region. JSC “People’s team Karpaty” project can give new impetus to the development of Lviv and Lviv region, create a positive image, new jobs and significantly increase tax revenues. The project implementation will allow:
- to increase both regional and city budget
- to move sectoral structure closer to the Western standards
- to increase the share of intellectual property in GDP of the region
- to create about 10.000 jobs only in adjacent areas
FC Karpaty actually offers to create an economic growth center of Lviv region. Surrounded by the small and medium businesses, the Center will allow them to independently develop and incorporate related businesses.
JSC “People’s team Karpaty” project is not only associated with football, it also targets Lviv region transformation into a powerful educational, scientific, sports and business center.
The important point of the project implementation is introducing local companies to European markets and the ones of Eastern Ukraine. The FC Karpaty-proposed project of creation of a strong export-oriented enterprise (such status will be provided by the team’s participation in European competitions) will promote Western-Ukrainian business not only in Ukraine, but also abroad.
