I have no idea what's going on, what it all means or what the people who know what their talking about are actually talking about.
I just hope it's all done and dusted soon so Charlton Athletic Football Club and all it's supporters can move on to, hopefully, a bright and successful future.
COYA
Suffice to say mate the interested parties appear to be getting their ducks in a row and we all await the nod of approval or otherwise from the EFL 🤞
That must mean the EFL are still mullarding it over. 🤓
If u had passed the fit and proper test and the conflict of interest potential had been cleared, what’s the last thing the efl would be interested in and how much wonga would it take to satisfy that last hurdle and what would a way of proving it be ????
If u had passed the fit and proper test and the conflict of interest potential had been cleared, what’s the last thing the efl would be interested in and how much wonga would it take to satisfy that last hurdle and what would a way of proving it be ????
The last published accounts show debts of £71m which were not due to be repaid within one year. This event could merely be Roland capitalising some of the debt, ahead of sale into shares. When the change of control happens a form PSC02 will need to be filed to show who is the new controller of the shares (currently the confirmation statement identifies Roland D as the ultimate controller even though the shares are held by Baton 10 Limited which in turn is owned by ..... Staprix which is in turn s controlled by RD) The reasons for capitalising the debt may be many such as the loss made int he current year against . However, East Street Inestments is still only showing one director and issued capital of £1. All of this will change when the EFL stop mucking around and pull their finger out.
Tahnoon On Tour Looks like the new board are having a great time down at the Valley - let’s hope they get the deal ratified soon and we can all wave goodbye to the 🐀 #UpTheAddicks
In short what it meant was the debt sitting on the books was cleared and funds were given to Ancelotti to spend.
No idea if it means Bowyer will be given funds to spend but my best hunch is as others have said that RD's debt will be converted into shares which will then be bought by the new owners meaning the club will be debt free once the takeover goes through.
Just my hunch, more than happy if someone is able to correct me on this.
- How shared are made and how they generate instant cash? - Are they literally introduced to the stock market and bought up straight away? - How clubs / companies (Man U) can be "refloated" on the markets time and again?
I'm sure it ain't just me on here who don't understand all this
I'll try, using a house as an example
You buy a house for £100,000 (I live in Bradford so it is realistic).
You put in £40k and get a mortgage for £60k. If you think of that as a 100 shares in "the house" you own 40, the bank own 60. Every year you buy 2 shares back off the bank. So after 10 years you own 60 and the bank own 40.
If you sell the house for 120k (a take over) the new owner buys all the shares, both yours and the banks. They may do so as an individual or as a consortium (a bank normally being the money man).
Fowever if you sell some of your shares to a 3rd party you "trouser the cash" but own less of the house.
Every time a house is mortgaged it's a bit like a share issue, and you slowly buy back the shares. Once you own enough of the shares you can remortgage, or issue more shares.
one question - do you have an outside toilet?
We just piss behind the pigeon loft and have number 2s in the whippet's kennel.
In short what it meant was the debt sitting on the books was cleared and funds were given to Ancelotti to spend.
No idea if it means Bowyer will be given funds to spend but my best hunch is as others have said that RD's debt will be converted into shares which will then be bought by the new owners meaning the club will be debt free once the takeover goes through.
Just my hunch, more than happy if someone is able to correct me on this.
Very much depends on the valie attributed to the shares not the price. These were issued at par (i.e. £1 each) and if converting debt will have reduced the debt by the £21m involved. The purchasers may pay £1.5 per share and RD would write of another £12m of debt but that would be insane because of stamp duty payable. on the purchase price of the shares. However, ESI may well buy Baton rather than CAFC Limited and the structure of the deal would be different. However if it is a reduction in debt then it would allow LB to buy players (presumably the moment the deal went through - unless RD is feeling generous)
I’m pretty sure FPP won’t allow that. You can write of the debt, but it is disallowed from the FPP calculation. Similarly converting debt to shares has no impact on your FPP calculation. If it’s a cash injection, it only makes sense (to me) if the takeover is complete.
I’m pretty sure FPP won’t allow that. You can write of the debt, but it is disallowed from the FPP calculation. Similarly converting debt to shares has no impact on your FPP calculation. If it’s a cash injection, it only makes sense (to me) if the takeover is complete.
It should make a difference since it is equity not debt which is part of the aim of the financial fair play rules i.e the money is not easy for the person investing in shares to reclaim (usually only on a solvent liquidation or the club having enough distributable cash to buy the shares back). Debt gets repaid on terms and ranks ahead of equity. conversion of debt to equity is effectively a cash injection
I’m pretty sure FPP won’t allow that. You can write of the debt, but it is disallowed from the FPP calculation. Similarly converting debt to shares has no impact on your FPP calculation. If it’s a cash injection, it only makes sense (to me) if the takeover is complete.
But it is allowed under league 1 rules which may stilll be in play in this financial year.
Another alternative view is that this 21 mill is the difference between the debt owed to Staprix and the purchase price, thereby balancing Staprix books on completion?
- How shared are made and how they generate instant cash? - Are they literally introduced to the stock market and bought up straight away? - How clubs / companies (Man U) can be "refloated" on the markets time and again?
I'm sure it ain't just me on here who don't understand all this
I'll try, using a house as an example
You buy a house for £100,000 (I live in Bradford so it is realistic).
You put in £40k and get a mortgage for £60k. If you think of that as a 100 shares in "the house" you own 40, the bank own 60. Every year you buy 2 shares back off the bank. So after 10 years you own 60 and the bank own 40.
If you sell the house for 120k (a take over) the new owner buys all the shares, both yours and the banks. They may do so as an individual or as a consortium (a bank normally being the money man).
Fowever if you sell some of your shares to a 3rd party you "trouser the cash" but own less of the house.
Every time a house is mortgaged it's a bit like a share issue, and you slowly buy back the shares. Once you own enough of the shares you can remortgage, or issue more shares.
one question - do you have an outside toilet?
We just piss behind the pigeon loft and have number 2s in the whippet's kennel.
Non-plussed by all this financial jargon. I just want to know one thing - are we going to be in a position to spunk oodles of cashola in January or will we still be bin dipping round the back of Poundland?
- How shared are made and how they generate instant cash? - Are they literally introduced to the stock market and bought up straight away? - How clubs / companies (Man U) can be "refloated" on the markets time and again?
I'm sure it ain't just me on here who don't understand all this
I'll try, using a house as an example
You buy a house for £100,000 (I live in Bradford so it is realistic).
You put in £40k and get a mortgage for £60k. If you think of that as a 100 shares in "the house" you own 40, the bank own 60. Every year you buy 2 shares back off the bank. So after 10 years you own 60 and the bank own 40.
If you sell the house for 120k (a take over) the new owner buys all the shares, both yours and the banks. They may do so as an individual or as a consortium (a bank normally being the money man).
Fowever if you sell some of your shares to a 3rd party you "trouser the cash" but own less of the house.
Every time a house is mortgaged it's a bit like a share issue, and you slowly buy back the shares. Once you own enough of the shares you can remortgage, or issue more shares.
one question - do you have an outside toilet?
We just piss behind the pigeon loft and have number 2s in the whippet's kennel.
In short what it meant was the debt sitting on the books was cleared and funds were given to Ancelotti to spend.
No idea if it means Bowyer will be given funds to spend but my best hunch is as others have said that RD's debt will be converted into shares which will then be bought by the new owners meaning the club will be debt free once the takeover goes through.
Just my hunch, more than happy if someone is able to correct me on this.
Very much depends on the valie attributed to the shares not the price. These were issued at par (i.e. £1 each) and if converting debt will have reduced the debt by the £21m involved. The purchasers may pay £1.5 per share and RD would write of another £12m of debt but that would be insane because of stamp duty payable. on the purchase price of the shares. However, ESI may well buy Baton rather than CAFC Limited and the structure of the deal would be different. However if it is a reduction in debt then it would allow LB to buy players (presumably the moment the deal went through - unless RD is feeling generous)
Conversion of debt will have no effect on the budget except that any interest we were charged per season now becomes available to spend. Even though I believe RD just added the interest to the debt tally, the interest is an "expense" in FFP calculations as a "relevant cost" each season for the FFP calculation. If he charged 3% then it might add at least a million per year or more because our debt in total was over £60M? But if he was not charging interest, then it will have no effect on FFP limits at all.
Comments
100% not him.
https://www.theguardian.com/football/2009/dec/30/roman-abramovich-chelsea-debts-accounts
In short what it meant was the debt sitting on the books was cleared and funds were given to Ancelotti to spend.
No idea if it means Bowyer will be given funds to spend but my best hunch is as others have said that RD's debt will be converted into shares which will then be bought by the new owners meaning the club will be debt free once the takeover goes through.
Just my hunch, more than happy if someone is able to correct me on this.
Another alternative view is that this 21 mill is the difference between the debt owed to Staprix and the purchase price, thereby balancing Staprix books on completion?
ITS NOT HAPPENING!!
"HIS TIMES BE FORTNIGHT, EF(L)"
He obviously couldn't fit the "L" in