On a day when Stan Kroenke took football investment to a new level, spending £1.7 million on just 200 Arsenal shares, Falkirk FC unveiled a more modestly priced opportunity for Scottish businessmen who want to buy into their vision.

Martin Ritchie, the chairman, has such faith in Eddie May, the manager, despite the club’s position at the bottom of the Clydesdale Bank Premier League, that he wants to raise £500,000 so that May can recruit new players to stave off the threat of relegation.

The Falkirk board have decided to back May with cash rather than words, just two days before the home game with the league leaders, Celtic. However, because Falkirk do not have any bank overdraft — they are debt-free — they hope to implement a rights issue that will raise the capital and bring in new investors.

Ritchie admitted yesterday that Falkirk had given May a budget that was too draconian when he replaced John Hughes last July. If the board get the approval of shareholders at the club’s AGM on November 30, Ritchie believes Falkirk can provide a “cash cushion” to help May.

“We did not set out to starve Eddie of resources but we needed a player budget that was less than last year,” Ritchie said. “We thought we had the capability of building the team around the players we had. The strategy is right but as soon as injuries hit, we had to bring in youngsters who are not ready.

“When you have setbacks it is harder for younger players. That is why the board have told Eddie if he finds players to bring in before the transfer window, he has the board’s backing. We are bottom after ten games and without a win, we felt we had to do something.

“We want to bring in cash to strengthen the team but the longer term aspect is that we need to give ourselves a cash cushion for the future,” said Ritchie, who has been involved with Falkirk since 1998, when he helped the club to stave off liquidation after the tenure of George Fulston.

“The club owed £1.5 million in 1998 and we cleared that off and have not had any bank debt since then. The good thing about that, is that we do not have anyone looking over our shoulders saying we need to pay, which is happening to other clubs in Scotland. However, the bad side is that you have to generate that cash yourself.

“Given what is happening today, I would rather be in that position. We run a tight ship. This is our fifth season in the Scottish Premier League and we have had two loss-making years and two with profits.

“We have put a lot of effort into developing our youth academy. We feel it is a better business model to develop players rather than spend more by bringing them in. These principles served us well but last season, we moved away from that because John Hughes was determined, after two seventh-place finishes, to finish sixth.

“However, we were lucky to get away with it — although we got to the Scottish Cup final, we were 20 minutes away from relegation. We are not going to gamble the future of the club by spending too much money but a bigger financial risk to the club is getting relegated so the board decided to act.

“Falkirk has a broad ownership base and we are not dominated by one or two wealthy individuals but I would like to see an evolution of the board and this club’s funding.”

However, Ritchie does not see Falkirk joining the trend of English clubs by being taken over by foreign investors. “This will not be an issue for Falkirk,” the chairman said. “The business of Scottish football is not big enough to attract an outsider. Only Celtic and Rangers can do that and even Rangers seem to be finding it hard just now. We have to find people in Scotland who want to be involved in our game.”