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Thanks. I was only 18 or so at the time so did not really take an interest in what was happening, just knew it was all a mess. I assume this is the debt for equity swap Grendel was referencing?

Which one is it?

Your original post said that the EFL rules meant that we could not exit administration unless the debts were converted to equity. I agree this is probably correct. But, if you are in administration, regardless of who the debt is owed to, you cannot service it. It’s an insolvency procedure. If...

Having unmanageable debts is a breach of EFL rules. You have to submit business plans each year along with company financial statements that demonstrate this. If a company is in administration then they obviously cannot service their debts. So is a breach of rules as there’s no way you could...

‘It’s who we are, mate’

Read my post again. I never said the debts owed to the owner were the reason. If you’re in administration then all debt payments are clearly unmanageable, otherwise you wouldn’t be in administration.

Wasn’t that because the debt was unmanageable, proven by the fact we were administration and paying high interest? When SISU sold the club to King, there was substantial amounts of debt owed to SISU.

Long and short of it: - Could be fresh injection from DK or external. - Could be DK writing off £15m of the £30m he’s owed via a debt for equity swap. This would mean that no new money has actually been injected. No one knows atm, that’s the truth of it. I have my theories although you’d...

Yes, you could. My point was that PSR is not a factor for us, coupled with the fact these are A class shares could be an indicator of external investment. Doug is sole shareholder, there’s no obvious reason why he’d need to issue himself a new class of shares with different rights.

I wasn’t trying to be pedantic, but you saying that as soon as you transfer say £15m, you’re already -£15m on PSR is incorrect. For arguments sake, that £15m could be spent on a player on a 5 year contract and so only £3m would affect PSR for any given year.

Which I already said was the case anyway. My original point was talking generally as OP tried making out I was being absurd for saying it when in fact, debt is usually cheaper than equity.

Like this ChatGPT I’ve literally just generated? That’s the difference, I didn’t need to enter in to Google or ChatGPT to know that. It’s a basic concept.

No it wouldn’t. It would not affect PSR in any way shape or form. Only the interest would, actual or the market value of interest free, if EFL rules follow the PL. PSR works on accounting profit. Loans do not affect profit as they belong on the balance sheet. Only interest from said loans would...

An interest free loan would not affect the profit though as it is a balance sheet item only. That being said, I know in the PL they require clubs to assess this on the basis that the loan is at market value and profit is adjusted to reflect true market interest on rates. Not sure if the same...

Of course it’s going to be for the benefit of the football club? Look, it’s likely to be one of two things: DK or someone external has invested £15m into the club. I personally think it’s feasible it’s external purely due to the fact that another class of shares have been issued, probably with...

Why on earth would he need to draw up a loan agreement? Have you ever heard of a directors loan? Would be as simple as setting up a payment from his own bank to the company account. And no one would be any wiser until the year accounts re published. Debt being cheaper than equity is a simple...

The EFL do not stop clubs from having debt though do they. Clubs have to submit business plans and financial statements to show the debt is manageable, but even then as long as the club’s meet PSR rules and pay their creditors on time there’s nothing they can do.

Unless you have inside knowledge of what the club are doing, no one could tell you what the share issue was for based off what’s available atm. Could be a number of different things.

Exactly what I meant. The EFL have no jurisdiction over what the debt/equity in the club is, so long as we meet PSR. That’s my understanding of it anyway.

Let’s be honest, DK has not gone online to sort this. He would have paid his accountant. That’s why I meant cheaper. Debt is cheaper than equity btw.