Fans (well anyone really) are being invited to invest minimum of £500 for fixed 5 year term with interest rate of 5% cash plus 3% off tickets and merchandise AND a 25% cash bonus if they get promoted to the premier league in that time. Qualifies as an ISA so tax free. All to fund a new training ground. Seems like you would be protected under the FSCS scheme for losses of up to £85k. Most fixed term bank bond schemes are under 2%, I might invest myself!! Wonder why we couldn't do something similar for the West Stand? Maybe a question to our owners/CEO at that meeting coming up?
Price of Football talked about it recently and said you'd be an unsecured creditor so it's not risk free.
The FSCS protection is not against default by the issuer. Put in straightforward terms you are taking a credit risk against QPR as an unsecured creditor. The FSCS reference is quite confusing for a lay person as it implies protection, this is not against default by the issuer but misrepresentation by the arranging firm, in this case Tifosy.
You have to ask yourself why aren't they getting a proper loan, which would be at a better rate of interest for them? The answer is almost certainly because the lender would want security. I'm not saying that they're going into this with the intention of shafting the fans, but the possibility is definitely a factor in their decision.