| Creating equity? 22:23 - Sep 4 with 3567 views | jackrmee |
What the hell does that mean and how is it done?
I read about Tan doing it for the scummers and now there's talk of the (alleged) moneysnatchers doing it for us. |  |
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| Creating equity? on 21:41 - Sep 5 with 791 views | _ |
| Creating equity? on 21:28 - Sep 5 by Badlands |
Of course you can't 'mortgage players' but you can borrow against their worth - its a risk but clubs all take yah risk.
Me?
Swans fan living in mid-Wales.
First game and fan since 1959/60 season.
Season tickets holder since Sousa - always tickets available before that.
No connection to the club other than family and friends who work / have worked for Swans or Liberty.
Is what you want to know
But why the interest? |
Ask him who he is? |  |
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| Creating equity? on 22:25 - Sep 5 with 743 views | jackrmee |
| Creating equity? on 09:07 - Sep 5 by felixstowe_jack |
Note TAN has not created extra equity. He owns the Cardiff 100%. Cardiff did have £200m of debts which breaks both the Pl and EFL fair pay rules. He has written off £100m of the debt as he is allowed to do so under fair play rules. but he still has the same amount of equity 100%.
he has learned the lessons form the last time Cardiff gained promotion and gambled by signing a lot players on high wages which resulted in a huge loss for tan.
This season he has a championship squad on championship wages and when cardiff are relegated they will make a profit of at least £50m. With parachute payments it will mean Cardiff will make around £100m over the next three seasons and will be able to repay most of the money they owe to Tan.
A True equity increase would be if all the company asks to increase it's number of shares by say 50% and asks all shareholders to buy up their entitlement with any remaining shares put up for general sale. |
Tan creating equity using shares
https://www.bbc.co.uk/sport/football/44731272 | |
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| Creating equity? on 22:53 - Sep 5 with 730 views | Kilkennyjack |
| Creating equity? on 07:55 - Sep 5 by Shaky |
Awayjack's example is mechanically correct.
In his example. the club is valued at £30 million today.
Shareholders wish to raise £15 million in new money which goes to the club to be used for whatever purpose, in return for new shares.
That means after the hypothetical issue of shares the club will me worth £45 million, with the new shareholders owning £15m out of £45m = 33.3% of the club.
The problem here is that currently the club is not worth anything remotely in the region of £30m.
Another thread details how Barclays have been given the rights to the majority of the club's revenue for the next 2 years. What would you pay for a business where all the revenue for the next 2 years belongs to somebody else?
Not very much is the answer. Hard to say exactly how much it is worth without seeing a balance sheet that shows the precise level of debt, but £10 million is likely the best possible scenario currently. However, zero and even a negative value are absolutely possible depending on the Trust's course of action over the unfair prejudice claim.
BTW, as far as i recall the new articles of association have abolished preemption rights which means there is no obligation to offer any new shares sold to the Trust, merely to ensure that they are priced in a way that does not unduly disadvantage them |
Thank you. Much appreciated. |  |
| Beware of the Risen People
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