Schoenherr advised the leading Austrian football club SK Rapid Wien (“Rapid”) and the crowdinvesting platform CONDA on their crowdinvesting project “Rapid InvesTOR”.
The project, through which Rapid fans and other investors can participate in the financing of the football club’s new “Allianz” stadium in Vienna, is the first crowdinvesting project with a simplified prospectus compiled according to Scheme F of the Austrian Capital Market Act (“KMG”).
With an issue volume of up to €3m, Rapid InvesTOR is also the largest crowdfunding project to have been launched in Austria to date. The opening of the Allianz stadium, the financing of which is already secured independently of the crowdinvesting project, is scheduled to take place during the summer of 2016.
Through the website www.conda.at, fans of the football club and other crowdinvestors can make investments in the form of a subordinated loan in volumes starting from €100. Depending on the term of the specific instrument they select to invest in, investors will be credited base interest rates of two to three percent per annum. In addition, bonus interest rate payments are possible, depending, inter alia , on Rapid’s sporting success in the international competitions organized by the Union of European Football Associations (UEFA).
The Schoenherr team advising Rapid and CONDA consisted of Rita Wittmann (counsel; Corporate/M&A) and Hutan Rahmani (attorney; Banking, Finance & Capital Markets).
Schoenherr has been advising Austria-based CONDA on the structuring of crowdinvesting models since 2013.