I am not sure that the conversion of debt to equity actually helps conform to FFP or PSR, they are assessed on annual trading losses, I think clubs can lose £39m over 3 years but can offset certain costs Like infrastructure ground improvements, they cannot offset interest on debt.
the only way a debt conversion to equity would help is if a club like boro and Gibson were charging interest on the loans which he wasn’t. I think he has accumulated over 400m of interest free loans to the club, probably like wrexham, they are keeping within that 13m per annum on average of losses to not breach. He will have converted to give better balance sheet strength by not having as much as debt and a better equity liquidity ratio
cannot underestimate how much the extra revenue wrexham are pulling in via united sponsorship or outside football tv revenue via their tv series, they could also be taking a massive punt and lose heavily this year as a gamble, it’s 39m over 3 years but could lose that in one year if they make profit or break even the next two seasons. They could also be doing a Chelsea so Sheaf at 6m on a 4 year deal would only cost 1.5m per annum, the Doyle deal had a buy back clause at the same value so not sure they would have to amortise his value through the books. only time will tell with them but boro will always be fine unless Gibson stops wanting to fund the losses like Mel morris did at Derby