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 !