Roland will only be able to sell the club for a price a buyer is willing to pay. Debt is surely meaningless above that as a buyer will take that into account with any amount they agree!
Absolutely this. Whether he shows it as debt or equity, it doesn't matter. The club is only worth what someone will pay, and they won't buy it unless some of that debt is written off.
Roland will only be able to sell the club for a price a buyer is willing to pay. Debt is surely meaningless above that as a buyer will take that into account with any amount they agree!
Absolutely this. Whether he shows it as debt or equity, it doesn't matter. The club is only worth what someone will pay, and they won't buy it unless some of that debt is written off.
If you want your business to be saleable and realise a higher enterprise value, you fund with equity not debt.
If you think the enterprise value will not reflect the equity you have injected, e.g it's loss making, you fund with loans so that the business might only be worth £1 but you will remain entitled to your money back.
Writing off the loan is simply negotiation over the purchase price and leaverage against a buyer keen to acquire.
just emphasising that a loan is not an investment, it's funding mechanism, and is a tactic to protect the interests of Staprix as opposed the interests of CAFC.
But the debt only has a use to RD when the club is in a position to pay it back! So that is probably a good thing in some ways, although the fact that the bloke is a liar and incompetent in the world of football negates that positive and some!
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If you think the enterprise value will not reflect the equity you have injected, e.g it's loss making, you fund with loans so that the business might only be worth £1 but you will remain entitled to your money back.
Writing off the loan is simply negotiation over the purchase price and leaverage against a buyer keen to acquire.
just emphasising that a loan is not an investment, it's funding mechanism, and is a tactic to protect the interests of Staprix as opposed the interests of CAFC.