Ground Purchase and Debt
Upon their foundation in 2002, AFC Wimbledon entered into a ground–sharing arrangement with Kingstonian to play home fixtures at Kingsmeadow, in the neighbouring borough of Kingston upon Thames.
Kingsmeadow had been the home of Kingstonian since the club moved there in 1989 from its traditional Richmond Road ground. However the club had hit major financial difficulties following relegation from the Conference. Administrators sold the club, including the lease to the stadium, to businessman Rajesh Khosla and his son, Anup. The Khoslas subsequently transferred ownership of the stadium away from the club and into separate subsidiary companies privately owned by the Khosla family, in a move widely seen as asset stripping.
After an SGM, it was felt by the AFC Wimbledon board of directors that securing ownership of Kingsmeadow would safeguard the ground for the future of both clubs. In March 2003 the Dons Trust members voted to purchase part of the lease for Kingsmeadow and in June 2003 the contract for buying the lease to the stadium was agreed with Rajesh Khosla; £3 million needed to be raised. This purchase took place a few weeks before the proposed formation of the Kingstonian Supporters Trust which AFC Wimbledon's Supporters Trust had been advising. That trust itself would have considered purchasing the lease to the ground had it been able to raise the funds.
Various innovative methods of fundraising (primarily a share issue offer to supporters which quickly realised £1.2m, and the Dons Trust Bond) meant that the debt to Mr Khosla was steadily reduced. On 30 March 2006, a Dons Trust meeting was held at which a majority voted to accept a commercial loan from Barclays Bank in order to clear the outstanding debt to Mr Khosla, which was at a much higher rate of interest. On 24 November 2006 a statement on the website finally confirmed that the club had taken the Barclays loan, and had repaid Mr Khosla in full. Although the club has now settled its debt to Mr Khosla, around £300,000 is still owed in the form of the commercial loan, with a further £300,000 to Dons Trust bond–holders.
The club continues to work on new ways of fundraising to clear the debt once and for all. Meanwhile, the future of the ground is secured as a home venue both for AFC Wimbledon and equally importantly for Kingstonian F.C. Kingstonian lease the ground at a nominal rate, paid for in part by the proceeds of an annual pre-season friendly between the two clubs, the Trevor Jones Memorial Trophy. However, AFC Wimbledon ceased to take part after 2008, from then on the competition was to take place between Kingstonian, Woking and a squad from Fulham.
Read more about this topic: AFC Wimbledon
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