BTW if you enter
Cost of debt v equity in Google
You may get the standard text book responses as posted as knowledge on here
Or use AI / chatgpt etc
What these text book answers won't give you is a personalised response that applies to DKs thinking or reasons
A clearer view is DK decided to effect a transaction with effectively, himself for reasons he knows. CCFC is better for the transaction- one assumes - end!
I think you might find several cars with blue lights outside your front door in short order
Or worse a group of unsavoury types with machetes demanding their money back
He has invested in a Championship football club - clearly a speculative venture that has no guaranteed value or profitable future
He is prepared to speculate further and assumes a further investment may move the probability of a financial success more in his favour
He gained his money on...
Rubbish - it is from a person who owns a company that owns a football club. In effect lending it to himself
He wants to put money into the football club ( for a reason he sets ) and the route he has chosen it ticks certain boxes
His accountant would be cheaper than a solicitor drawing up a loan agreement
Debt is cheaper than equity btw. - Interesting statement please explain your reasoning !
There is a copy issue of shares within CCFC Opco thta is funded by the transfer from its Parent
So there is an implied intention it is for the benefit of the football club - or to cover past costs
Then you are completely out of touch. The regulations extend into financial sustainability and solvency etc and Clubs are required to submit financial statements