Goals chief to get pay rise if takeover deal approved

Deputy Business Editor

Saturday 21 July 2012

THE chief executive of Goals Soccer Centres will receive an immediate £75,000 pay rise if a £73.1 million takeover goes ahead, although a potential rival bidder may yet emerge.

net GAIN: Keith Rogers is in line for an immediate £75,000 pay rise if a takeover by the Ontario Teachers' Pension Plan is agreed. Picture: Ashley Coombes

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Greig Cameron

Keith Rogers, who holds an 8.4% stake in the five-a-side football business business, will see his basic pay increase 47% from £160,690 to £235,690 if a 144p-per- share cash offer with the Ontario Teachers' Pension Plan (OTPP) is agreed.

The offer price is a 34% premium to the share price on March 30 which is the day prior to OTPP announcing it was in talks over a potential offer.Executives from Goals are recommending the takeover deal and investors holding 27% of the shares have given their support.However, Patron Sports Holdings, which owns rival small-sided football firm Powerleague, has said it is still considering its options over whether to launch a counter bid and urged Goals shareholders to take no action about the offer.Under the terms of the deal, being conducted by OTTP's private equity arm Teachers' Private Capital (TPC), Goals finance director William Gow will get a pay increase from £134,890 to £179,890 while operations director Morris Payton will go from £125,980 to £155,980.The Goals management team would stand to receive around £9.3m from the sale of their shares with around £5.89m of that for Mr Rogers, However they have agreed to use £6m of the potential proceeds to invest in the equity of the company formed for the bid, Goliath Bidco, with the remaining £3.3m being paid in cash.Goliath said it was an important part of its strategy to make sure the existing management team at Goals would stay on at the company headquarters in East Kilbride.It said: "Goliath's current plans for Goals do not involve any material change to its commercial offering or place of business."Goals already operates 43 centres in the UK and one in Los Angeles in the United States. Further North American sites are thought to be one option being considered for growth.TPC said: "Goals' management is well positioned to take advantage of a window of opportunity to strengthen its position in the UK and to establish itself in other geographies."Mr Rogers, who will manage Goliath if the deal completes, said: "The Goals management team is excited about partnering with OTPP. This investment will represent a significant step in the implementation of management's strategy to expand our scale, geography and capability. "Twelve years ago, we positioned Goals to capture value through the provision of "next generation soccer facilities" across the UK. With OTPP, we can now deliver our longer term vision of allowing thousands more players, young and old, access to the unique Goals experience."The current directors of Goliath are Teachers' Private Capital executives Frederik Wijsenbeek and Marvin Teubner.Jo Taylor, senior representative in the London office of TPC, said: "We believe that this will be a win-win for investors, employees and the thousands of players who enjoy using Goals' facilities each week. "The management team has built a robust business since acquiring Goals in 2000, and we are excited at the growth plans for the future. Our aim is to cement Goals' position as the UK's premier five-a-side operator and help the business to achieve its potential."Sir Rodney Walker, chairman of Goals and of the committee of the independent directors formed to assess the bid, said: "The offer by OTTP provides Goals shareholders with certainty in a difficult economic environment, where significant execution risks remain around consumer facing businesses. "I and the other independent directors consider the offer represents a fair and reasonable opportunity for Goals shareholders to realise cash value not otherwise available in the market."The companies hope to complete the deal by September although the offer will lapse if it is not finalised by mid-December.

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Goals chief to get pay rise if takeover deal approved

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