The first 24 hours of the crowd sourcing project.

[Copps is Magic]

The Crowdsourcing project (http://www.crowdfunder.co.uk/trust) was started at around 3:00pm yesterday. In the first 24 hours of business they have secured £14,564 of funding over the £500k (we presume) Louis Tomlinson has pledged.

If we extrapolate that figure for the remaining 27 days of the project the total figure raised would be £393,228 + £500k = £893,228 (i.e. £1.1m short of the target).

I presume these things actually work on a bell shaped curve sort of affair where the rate of donations peak a few days after the announcement and slowly decline until the completion date. If we (generously) assume a daily donation rate of £25k then the total raised would be (£14,564 + £500k + £675,000 = £1,189,564). Meaning they would be around £800k short of the target.

There are some unaccounted for issues in this. One would be the amount of no-shows who pledge and don't pay up. The other (and I am going out on a wing here) would be whether any 'high-profile' donations are made from celebrity friends and the like. The third issue is costs (i.e. how much they have to pay the website, how many they have to pay staff, how much they have to pay for producing wrist bands and t-shirts and the like).

Either way they will probably raise around half a million squid (nice sum of money for a league one club) but will fall somewhere substantially short of the target.

[big fat yorkshire pudding]

I've got all this calculated this morning. I'm busy at work this morning but I'll try set it out if I can.

[vietaff]

The Crowdsourcing project (http://www.crowdfunder.co.uk/trust) was started at around 3:00pm yesterday. In the first 24 hours of business they have secured £14,564 of funding over the £500k (we presume) Louis Tomlinson has pledged.

If we extrapolate that figure for the remaining 27 days of the project the total figure raised would be £393,228 + £500k = £893,228 (i.e. £1.1m short of the target).

I presume these things actually work on a bell shaped curve sort of affair where the rate of donations peak a few days after the announcement and slowly decline until the completion date. If we (generously) assume a daily donation rate of £25k then the total raised would be (£14,564 + £500k + £675,000 = £1,189,564). Meaning they would be around £800k short of the target.

There are some unaccounted for issues in this. One would be the amount of no-shows who pledge and don't pay up. The other (and I am going out on a wing here) would be whether any 'high-profile' donations are made from celebrity friends and the like. The third issue is costs (i.e. how much they have to pay the website, how many they have to pay staff, how much they have to pay for producing wrist bands and t-shirts and the like).

Either way they will probably raise around half a million squid (nice sum of money for a league one club) but will fall somewhere substantially short of the target.

Its still early days yet and im sure there is still a lot of publicising to be actioned to engage even more people. Looking at the Pledges, if i had a daughter (or son) and they were a 1D fan i would think nothing of paying £250 for the chance for my child to meet Louis prior to a game at the KM. If you put it into context its relatively cheap, given that their concert ticket prices can be in excess of £100+ and they would get to meet one of their idols.

I have a feeling once the crowdfunder does hit the ground and gets the awareness Louis and JR are looking for it will be a success and some vital funds will be raised to enable PD strenghten the squad.

[Copps is Magic]

There's no denying that people will be willing to put money it. But to reach the target - they need around 55k per day and on current evidence they won't achieve that.

[Alickismyhero]

Copps I am convinced the trust will reach the target. Can Ryan and Tommo afford to not reach the target? Didn't Ryan imply he has a very successful friend that may come on board? I can see some large donations coming in near the end if it looks like failure Ryan will have to hold face, failure is not an option.

[big fat yorkshire pudding]

The facts relating to this are like this;

500k was initially invested by JR/LT.

Since that point to this second there has been a further £15,764 of purchases in the scheme.

The scheme to be successful requires £53,571.34 per day on average (2232 per hour).

The scheme will only be successful if the 2M target is reached on time.  However, less than 2M flows back to the club.  As the scheme is essentially offering a product it is subject to VAT.  On the basis this is at 20% it would be around 333k in VAT applicable.  On top of this there are fees due per payment.  These are between 5 and 5.5% so assume 5% the minimum.  This would be 120k including the VAT applicable on that.

In crux the 2M would actually likely become 1.55M once all fees and taxes are paid.  Quite different to what the charges would be using other schemes perhaps.

What this doesn't tell us is whether it will be achieved, quite clearly someone could pump in 1Million if they so wish.  It's an interesting and different way that's for sure.

[Milepostuk]

The facts relating to this are like this;

500k was initially invested by JR/LT.

Since that point to this second there has been a further £15,764 of purchases in the scheme.

The scheme to be successful requires £53,571.34 per day on average (2232 per hour).

The scheme will only be successful if the 2M target is reached on time.  However, less than 2M flows back to the club.  As the scheme is essentially offering a product it is subject to VAT.  On the basis this is at 20% it would be around 333k in VAT applicable.  On top of this there are fees due per payment.  These are between 5 and 5.5% so assume 5% the minimum.  This would be 120k including the VAT applicable on that.

In crux the 2M would actually likely become 1.55M once all fees and taxes are paid.  Quite different to what the charges would be using other schemes perhaps.

What this doesn't tell us is whether it will be achieved, quite clearly someone could pump in 1Million if they so wish.  It's an interesting and different way that's for sure.

Vat and trusts is not that clear cut. Depends on the type of trust setup.

[big fat yorkshire pudding]

It's offering a product and thus is vat applicable. It says so on their own website!

[Glyn_Wigley]

Vat and trusts is not that clear cut. Depends on the type of trust setup.

It is clear cut. Even charities are VAT liable if they're selling a product in return for money.

[Copps is Magic]

Well, in the second 24 hours they have received less than £4,000 in pledges. I may have to revise my predictions and say this is at serious risk of falling flat on its arse.

[albie]

If this does taper off very quickly it will be interesting to see what Plan B entails.

Holding out to the closing date only makes sense if there is a realistic prospect of meeting the target. Small contributions give small gains unless a big boost is given by a significant donation.

The trouble is that the longer it drags on the greater the uncertainty about the future and squad recruitment. We don't want to end putting a squad together just days before the start of a new season.

[big fat yorkshire pudding]

It can't fail for them so I'm sure there is a contingency.  Imagine the backlash if those who have pledged get nothing. Even though they pay nowt there will be disappointed kids who have pledged their birthday money on this!

[dknward2]

Read a comment that one person had pledged all his/her birthday money

[eastender]

Read a comment that one person had pledged all his/her birthday money

That was me.   

[dknward2]

Well done on supporting the struggling millionaires that own our club ;-)

[since-1969]

I suppose when you look at all the good causes you can give money too , nothing quite beats the heart breaking cries of a millionaire down to his last £50m , sorry I have stop now  It's just too much for me .

[jucyberry]

The trouble is, kids aren't going to pay out more than once for the £10 video,  or probably anything else for that matter.. I would think that fact alone would make the fund raising limited to a degree.

[GazLaz]

Someone just pledged 10k.

[dknward2]

Prob louis mum lol

[Viking Jack]

Either someone with some money is backing the scheme, or someone REALLY wants to play footy against Louis.

Still, getting 10k can only be good for the club.

[The Red Baron]

Either someone with some money is backing the scheme, or someone REALLY wants to play footy against Louis.

Still, getting 10k can only be good for the club.

Perhaps he thought he'd get 2,000 video messages from Paul Dickov!

[Filo]

Someone just pledged 10k.

The cynic in me says that pledge was probably made by someone with an interest in seeing it reach the target, especially when a certain person reported it on FB almost straight away, expect more latge pledges when the donations stall

[Wellred]

Filo .....cynical?? surely not.

[GazLaz]

Someone just pledged 10k.

The cynic in me says that pledge was probably made by someone with an interest in seeing it reach the target, especially when a certain person reported it on FB almost straight away, expect more latge pledges when the donations stall

Who is the guy that put it on FB? Must admit I put it on here soon after it happened and I have no links to it! Just addicted to checking the progress! (Or lack of it)

[Filo]

Filo .....cynical?? surely not.

Spineless apparently!

[Wellred]

Filo .....cynical?? surely not.

Spineless apparently!

FFS grow a pair. You have had an apology. Doesn't that satisfy you?

[Filo]

Filo .....cynical?? surely not.

Spineless apparently!

FFS grow a pair. You have had an apology. Doesn't that satisfy you?

Calm down dear!

[wilts rover]

Someone just pledged 10k.

The cynic in me says that pledge was probably made by someone with an interest in seeing it reach the target, especially when a certain person reported it on FB almost straight away, expect more latge pledges when the donations stall

Interesting choice of words there Filo, are we all as Rovers fans not interested in our new owners Trust scheme reach its target, for the good of the club, or are there people who have an interest in it failing?

[since-1969]

There is no target just another way of getting what they lost from the Season ticket sales that all went to patient form .

[the vicar]

i don't think it will fail as if they have to top it up the other money gained is still good money they wouldent of got if they hadent of done it