forlanssister 3,050 Posted November 10, 2016 Share Posted November 10, 2016 I'm completely ignorant when it comes to financial matters concerning football clubs so forgive me if I'm way wide of the mark here - is there not something in football regulations about clubs having to live within certain financial limits ? I know that the obsessed have been prattling on for months now about complaints being made to the football authorities of money being loaned to our club.Is it possible that the club are working to reduce the value of any debt so that money can later be loaned to address the squad, etc ? As I say, I'm possibly just dribbling at the mouth here. That's a perfectly logical scenario but I don't think it will quite play out that way. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted November 10, 2016 Share Posted November 10, 2016 I would say that loans are worth more to the directors than shares as a loan can be demanded in full, whereas shares need to be sold and the price goes down as well as up - and in the case of football it's usually down. The thing about the investors it that they want something for their money - in the case of shares, they get a big say in the running of the club, and directorships with all the perks etc, while actually being able to get some of their money back when they want to move on. 0 Quote Link to post Share on other sites More sharing options...
rbr 1,247 Posted November 10, 2016 Share Posted November 10, 2016 I don't see it as getting their money back as they'd have to sell for that to actually happen and the only realistic buyers are the Directors and loanees themselves. They are getting something of value back , which if they run the club correctly will only increase in value , so yes your correct , but long term they are getting their money back and then some . My biggest issue with this process is they don't need to do it , in fact it will damage us more in the long term , but that's just my opinion. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted November 10, 2016 Share Posted November 10, 2016 My biggest issue with this process is they don't need to do it , in fact it will damage us more in the long term , but that's just my opinion. It strengthens the balance sheet and takes away liabilities. Generally has to be positive, in my opinion. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,050 Posted November 10, 2016 Share Posted November 10, 2016 They are getting something of value back , which if they run the club correctly will only increase in value , so yes your correct , but long term they are getting their money back and then some . My biggest issue with this process is they don't need to do it , in fact it will damage us more in the long term , but that's just my opinion. The benefit to the Club of the interest free and non commercial nature of the loans will probably be of greater value than any return on the converted equity. What other realistic options are there to settle the outstanding loans? 0 Quote Link to post Share on other sites More sharing options...
rbr 1,247 Posted November 10, 2016 Share Posted November 10, 2016 Both Bluedell and forlansister have a much greater knowledge of these things than I do and as a rule of thumb I nearly always listen and learn from their posts . However at this precise time in our rebuilding , when we have no retail or any great commercial deals , sponsorships etc , and we are relying on free transfers or low cost players , I fail to see how any future share issue ( and I'm plucking figures out the air here ) , where of a possible £20 million injection into the club , £10 million is on a swap basis that sees only £10 million go into the coffers . Yes our balance sheet looks tremendous , but I've yet to see a balance sheet that can score a goal . 0 Quote Link to post Share on other sites More sharing options...
BEARGER 1,829 Posted November 10, 2016 Share Posted November 10, 2016 The guys who put in their money are entitled to recompense , we always knew this would be via getting shares rather than cash. As has been pointed out the only way they can get their cash back is by selling the shares. Some are awfully good at telling others what to do with their money. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,050 Posted November 10, 2016 Share Posted November 10, 2016 Both Bluedell and forlansister have a much greater knowledge of these things than I do and as a rule of thumb I nearly always listen and learn from their posts . However at this precise time in our rebuilding , when we have no retail or any great commercial deals , sponsorships etc , and we are relying on free transfers or low cost players , I fail to see how any future share issue ( and I'm plucking figures out the air here ) , where of a possible £20 million injection into the club , £10 million is on a swap basis that sees only £10 million go into the coffers . Yes our balance sheet looks tremendous , but I've yet to see a balance sheet that can score a goal . We'll have to wait till we see the finer details of the rights issue to exactly what's what but it's quite possible they may not opt for full conversion at this time though I think they probably will. The size of the issue was a bit of a surprise to me as I thought we'd opt for 2/3 smaller ones over a period of 2/3 years . Agree re balance sheet and scoring goals but currently the balance sheet like our defence needs a bit of shoring up. 0 Quote Link to post Share on other sites More sharing options...
D'Artagnan 173 Posted November 10, 2016 Share Posted November 10, 2016 That is the blanket policy. Would it not have been better to ask members what their preference was with that lump of cash? Surely it's easy to set up a poll on the website? Bluedell - Im all for consultation with members but I honestly dont see the need to poll members for what you referred to as a "special resolution" to buy shares from a source which members had already approved. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted November 10, 2016 Share Posted November 10, 2016 Bluedell - Im all for consultation with members but I honestly dont see the need to poll members for what you referred to as a "special resolution" to buy shares from a source which members had already approved. I don't recall using the phrase "special resolution" in this respect but that's not important. IIRC the members were given a take it or leave it in respect of the way that cash was distributed. It was rushed through as part of the overall approval process and it wasn't given much of a discussion as far as I'm aware. It's slipped through but the members have never been given the opportunity to express how they would like their shares purchased. It's similar to the 47.5%. There has not been proper discussion on it. There is a choice and a number of ways have previously been "approved" so why not ask the members? I appreciate you replying but it's a disheartening one, particularly when it's something as important as cash which could have gone to the club. 0 Quote Link to post Share on other sites More sharing options...
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