Investment? £15m nominal value (16 Viewers)

[SHUNT31]

Not an expert on PSR but think that restricts losses (not amount of debt). Interest free loans have no impact on P&L (losses).

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.

 

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[bigfatronssba]

This thread is nice. Like old times.

In the old times it was some scrote taking £15m out of the club

 

[Broken Hearted Sky Blue]

Heard it here first:

After saving his earnings as a mascot since 1969, Sky Blues Sam becomes minority owner of CCFC.

View attachment 43489

This thread is nice. Like old times.

Yes however now we haven’t got anybody that knows what they’re talking about or that could explain it. I and most others on here had only got through about half of “Complex Accountancy For Dummies” before our guru was sadly taken from us.

 

[Deity]

Yes however now we haven’t got anybody that knows what they’re talking about or that could explain it. I and most others on here had only got through about half of “Complex Accountancy For Dummies” before our guru was sadly taken from us.

@Pitch87 seems to be spot on.

 

[SHUNT31]

Yes however now we haven’t got anybody that knows what they’re talking about or that could explain it. I and most others on here had only got through about half of “Complex Accountancy For Dummies” before our guru was sadly taken from us.

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.

 

[oldfiver]

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.

Then you are completely out of touch. The regulations extend into financial sustainability and solvency etc and Clubs are required to submit financial statements

 

[oldfiver]

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.

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

 

[oldfiver]

It more than implies, it's a factual calculation.

Nothing to do with a valuation exercise it is obviously a move to get funds in to CCFC without burdening it with debt

 

[Sky Blue 1987]

Could it be to fund a new stadium lease? 1.5m a year for 10 years?

 

[oldfiver]

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.

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 !

 

[Pitch87]

Nothing to do with a valuation exercise it is obviously a move to get funds in to CCFC without burdening it with debt

Agreed it's not a valuation exercise, it is about new investment but if that investment comes in the form of equity (particularly if it's from an outside investor) there has to be a valuation at which that investment takes place (whoever is putting that money in has to know what they're getting for it) - in this case the investment is at a post money equity valuation of £150m.

 

[oldfiver]

Could it be to fund a new stadium lease? 1.5m a year for 10 years?

It could be almost anything - I would just wait and see what he does happens over the close season

 

[oldfiver]

Agreed it's not a valuation exercise, it is about new investment but if that investment comes in the form of equity (particularly if it's from an outside investor) there has to be a valuation at which that investment takes place (whoever is putting that money in has to know what they're getting for it) - in this case the investment is at a post money equity valuation of £150m.

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

 

[long way home]

I would assume the reason will become clear enough soon enough. I don't think its a bad sign whichever way and i believe we are going in the right direction.

 

[Pitch87]

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

Haha, this is probably a wind-up but on the off chance it isn't, so if you were asked to invest £1000 in a property deal, you would consider doing so without knowing what the property is valued at? That's just nonsense. Back to the real world...

 

[clint van damme]

This thread is nice. Like old times.

Account appears from nowhere and dives straight in on a financial thread, it certainly is.

 

[Grendel]

@Pitch87 seems to be spot on.

lol

 

[procdoc]

If 15 million quid showed up in my account I wouldn’t ask any questions whatsoever!

 

[Gynnsthetonic]

Anyone mentioned acquiring The Sky Blue Connexion and the extra land, didn't Doug say when he took over he'll only put his own money in into the infrastructure of the club.

 

[Grendel]

Haha, this is probably a wind-up but on the off chance it isn't, so if you were asked to invest £1000 in a property deal, you would consider doing so without knowing what the property is valued at? That's just nonsense. Back to the real world...

His posting history shows knowledge on such issues.

Your 5 posts - all oddly on this thread - suggest you don’t.

 

[fernandopartridge]

These are WUM accounts. They only come on to get a reaction. I wouldn’t try using logic or facts to persuade them.

Here he is, Dougie's little lap dog. £135m

 

[fernandopartridge]

Could it be to fund a new stadium lease? 1.5m a year for 10 years?

He wouldn't pay it upfront, that would be a mental idea imo

 

[Deity]

Here he is, Dougie's little lap dog. £135m

Dumb and dumber ….

 

[mmttww]

Heard that the real source of funds is this guy #itk

 

[Skybluedownunder]

Sent from my iPhone using Tapatalk

 

[oldfiver]

@Pitch87 seems to be spot on.

He doesn't - believe me !

 

[oldfiver]

Haha, this is probably a wind-up but on the off chance it isn't, so if you were asked to invest £1000 in a property deal, you would consider doing so without knowing what the property is valued at? That's just nonsense. Back to the real world...

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 speculation and hedging his activities and at least one deal worked out

You have no idea of the area of business DK trades in and your analogy is thus a nonsense

Not sure what you are trying to achieve but you have only succeeded in showing your ignorance

 

[Manchester_sky_blue]

Ashley investing ?

He wouldn't keep it quiet if he was chucking money in, not his style.

 

[oldfiver]

If 15 million quid showed up in my account I wouldn’t ask any questions whatsoever!

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

 

[StrettoBoy]

I suspect it’s Doug King capitalising some or all of his loans to the company in order to strengthen the balance sheet, in which case it’s not new money.

 

[fernandopartridge]

Dumb and dumber ….

Move over @RFC there's a new sheriff in town

 

[Liquid Gold]

Only SBT could see a£15m gift to the football club and turn it into a row.

FWIW though @oldfiver is correct on this one.

 

[SHUNT31]

Then you are completely out of touch. The regulations extend into financial sustainability and solvency etc and Clubs are required to submit financial statements

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.

 

[SHUNT31]

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 !

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 business concept. First of all, debt holders require a lesser return (interest) as debt is generally less risky. This is because that if a company was to enter insolvency, they would be a creditor and paid back first. Equity holders require a higher return (dividends) because they would be paid last out of any funds available for distribution following insolvency. Interest is also a tax deductible expense whereas dividends are paid from post tax profits.

For CCFC, DK has already said all loans would be interest free and I doubt the group will ever be in a position to pay dividends so it’s all irrelevant anyway. My point about debt being cheaper was in response to you being surprised that I said it was.

 

[SHUNT31]

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

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 no voting rights.

Or, DK has written off the loans owed to him and converted them to equity, a bit like what was done when he took over. If this is the case, then no new funds have actually been injected but the balance sheet will look healthier.