| Spending a penny 19:32 - Jul 21 with 2502 views | britferry |
I wouldn't even buy one of them, sounds like a con to me...
Cardiff move to cut debts by £19m
Cardiff City are looking to convert another £19m of debt into equity as part of renewed attempts to tackle their accounts.
The club has issued 1.9billion new shares at 1p each, with the announcement coming quietly through Companies House on Tuesday. In principal, sources claim the move will effectively wipe £19m off the club's overall debts, which according to their latest accounts stand at £109.5m for the year ending May 31, 2021.
It follows a similar move made in February, where owner Vincent Tan converted another £6m of the £61m owed to him after the club's debts grew due to the financial impact of the coronavirus pandemic.
Chairman Mehmet Dalman at one stage stated Tan had effectively to put his hand in his pocket to the tune of nearly £3m a month to keep the club running, putting the brakes on a pledge made by the Malaysian back in 2016, where he insisted he'd try and make Cardiff debt-free within five years.
But this latest bid to convert further debt into equity suggests he's perhaps keen to push ahead with that pledge.
Cardiff have been approached by Wales Online for a comment.
It's understood that while the new move will help to cut the club's debts, in likelihood it will have little impact on City's transfer efforts this summer.
Cardiff boss Steve Morison has already been busy in the transfer market, having brought 12 new players on board, and is still keen on bringing in a new striker before the start of the season, which kicks off with a tough home clash with newly-relegated Norwich City.
This latest announcement is unlikely to have any bearing on that search, although there is believed to be confidence among the hierarchy and Morison himself that attacking reinforcements will be brought on board, although it will more than likely be on loan. |  |
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| Spending a penny on 12:39 - Jul 22 with 414 views | ReslovenSwan1 |
| Spending a penny on 09:52 - Jul 22 by jasper_T |
I didn't realise they had other shareholders. I knew they owed other parties money in the form of long-term interest-paying loans, but assumed he had 100% control of the club and never looked at it more closely than that.
Creating millions of penny shares is naturally going to dilute the % of other shareholders massively if they don't get a chance to buy in/write of their own debts in kind. |
Here is a WoL line report fairly recent. As I have been explaining it is very hard to dilute minor shareholders to less than 5% if the club does not drop down the leagues and therefore have a very low valuation like Wrexham . The US people are not fools.
The more you own the easier it it to dilute if you do not match fund. 21% was always way too big a holding for the SCST. £13m sees them lose 6%. A 5% holding would mean the SCST finding only £500k for a £10m investment. They did not need protection with Levien and SIlverstein in charge.
It is academic now as they will never invest in Swansea again. They are currently 'sponsoring' Santander bank but the members simply do not understand this. The bankers friend. The young deprived footballing kids on the streets of Swansea Neath and Pembroke get nothing.
https://www.walesonline.co.uk/ [Post edited 22 Jul 2022 14:21]
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| Spending a penny on 14:20 - Jul 22 with 368 views | pencoedjack |
| Spending a penny on 11:17 - Jul 22 by Joesus_Of_Narbereth |
Does this mean they can now afford to sign Bale and Ramsey because they absolutely love the club with all their heart and are utterly desperate to play for them? |
From what I see they are still 90 million in debt, they were losing 3 million a month last season paying for those top class footballers who got spanked 7 nil over 2 games by their illustrious neighbours.
Hopefully relegated this season 👠|  | | |
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