Under the shadow of a housing bubble and banks tightening the purse strings, the Sporting Globe Group is taking advantage of changes to regulations and attempting to crowd-fund its next pub instalment.
The Sporting Globe (TSG) franchise already counts nine venues, and will soon open more.
The planned instalment at Plenty Valley has initiated a campaign through Birchal, hoping to raise $700,000 capital, offering everyday punters the chance to invest between $50 and $10,000, and literally own a piece of the corner pub.
Equity crowdfunding legislation was passed late last year, and the first licences have already been issued, last month. The new rules allow small investors to support early stage concepts and companies.
The principle has been in place in the UK for a number of years, and has seen mum-and-dad investment into a lot of pubs, particularly in smaller towns where many pubs are struggling to survive. UK brewer Brew Dog has similarly used it to fund its own outlet venues.
TSG CEO James Sinclair told Stockhead the concept helps create “intrinsic loyalty” and could be an exciting new way for talented young people in hospitality to get access to capital.
Sinclair says crowd-funding fits perfectly with TSG’s franchise model – partnering with local stakeholders.
“The truth is, it’s Australia’s sporting culture that unites us,” says the promotional blurb on the campaign.
The Sporting Globe expressions of interest campaign closes at midnight, Friday 16 February.
PubTIC was unable to reach management of the Group in time for publication. Further details may follow.