Series H
Le Council announced the close of Hockay’s Series H funding round “pleased, and faintly alarmed.”
The round was led by an institution whose paperwork is impeccable and whose origins Le Council elected not to examine too closely. The term sheet arrived already signed. The terms were unusual: rather than dilute the fans, the round handed them the equity.
Le Council read the document twice, found no trap, and signed.
What it created
Section titled “What it created”- Fan-held equity in every team. Each team issued a fixed pool of one million shares, bought and sold with Looneys.
- S.L.U.S.H.—the Société for the Liquidation of Unsettled Share Holdings, a joint venture between Le Council and the Funds, to settle the book.
- A brokerage fee on every trade, which services the financing and is repaid to Le Council and the Funds against the terms of the round.
- A dividend at the close of each season, weighted by how far a team went.
- The Funds’ own position. They take stakes in teams as they see fit, published separately from the fans on every team’s page.
The sentence Le Council would like back
Section titled “The sentence Le Council would like back”Announcing the opening, Le Council wrote this:
The pools are fixed at one million for now. The current agreement sets out no terms for diluting or expanding them—and, Le Council notes, no terms against it either. Read into that what you wish.
Le Council intended a note of caution.
Graine Wetsky Funds appears to have read an invitation. Eight weeks later it served notice under Article 3.C, subsection (a)(iii) of the Series H preferred terms and issued Series I.
See also
Section titled “See also”- Series I—what Article 3.C turned out to permit.
- Graine Wetsky Funds—who led the round.
- The Exchange—how the market works today.