Parker not the knight in shining armour then

Nobody in the world invests money in a lower league football club with the intention of securing an ROI.  The money that Mike Parker has invested in shares has been put into the GTFC coffers and spent on the club.  If Mike Parker decides to sell his shares and somehow gets the same amount of money back that he initially paid then this money comes from the person who is purchasing those shares from him, not from out of the clubs coffers, unlike a loan.

His personal net investment in the club would be zero BUT the actual investment into the clubs coffers is still 1.25 million.

It would appear that the reason he now holds 54% of the clubs issued shares is because Fenty hasn't matched his 500k share investment as it was, supposedly, agreed.

Quoted from Quagmire

Nobody in the world invests money in a lower league football club with the intention of securing an ROI.  The money that Mike Parker has invested in shares has been put into the GTFC coffers and spent on the club.  If Mike Parker decides to sell his shares and somehow gets the same amount of money back that he initially paid then this money comes from the person who is purchasing those shares from him, not from out of the clubs coffers, unlike a loan.

His personal net investment in the club would be zero BUT the actual investment into the clubs coffers is still 1.25 million.

It would appear that the reason he now holds 54% of the clubs issued shares is because Fenty hasn't matched his 500k share investment as it was, supposedly, agreed.

Then why wouldn't fenty convert his loan to shares then, sorry finance not my thing ask my bank manager  & my creditors

Apols for me being a tad OTT Red, a little bit uptight at the mo!

Depends on who you believe and how much of what both say is true.

If you believe Parker 100% then he agreed to fund this seasons predicted losses 50/50 with Fenty and that this would be in the form of share purchases rather than loans as this looks better on the company accounts.

Parker appears to have put in his 500k in share purchases but Fenty has yet to do the same.  If he were to do this then it would appear that Parker would own less than 54% of issued shares and this current issue with the takeover panel may well go some way to being resolved.

Only Fenty knows if he is going to invest in additional shares rather than a loan.

Quoted from Red mariner

Then why wouldn't fenty convert his loan to shares then, sorry finance not my thing ask my bank manager  & my creditors

Well IMO if he converted his loan ( according to MP only 150K so far, against MP's 500K) he would likely become major shareholder  & Chairman again in a failing, loss making business and in my opinion JF wants a way out, i do not believe he wants to lose any more  cash than he already has and i think he would prefer to recoup as much as possible and disappear off to a political career.

Quoted from Quagmire

Apols for me being a tad OTT Red, a little bit uptight at the mo!

Depends on who you believe and how much of what both say is true.

If you believe Parker 100% then he agreed to fund this seasons predicted losses 50/50 with Fenty and that this would be in the form of share purchases rather than loans as this looks better on the company accounts.

Parker appears to have put in his 500k in share purchases but Fenty has yet to do the same.  If he were to do this then it would appear that Parker would own less than 54% of issued shares and this current issue with the takeover panel may well go some way to being resolved.

Only Fenty knows if he is going to invest in additional shares rather than a loan.

hey no probs I think we all are a bit upset as we don't want to the club to go under and who knows what they are both u to, just hope that GTFC comes out of it better, stronger & ready for the league  

Quoted Text

It would appear that the reason he now holds 54% of the clubs issued shares is because Fenty hasn't matched his 500k share investment as it was, supposedly, agreed.

And therein lies the problem - firstly JF, according to MP, has still to put £350k into the club in one way, or another.
If JF invests this money and buys shares like MP then he will regain the majority shareholding, which MP seems comfortable with. So why hasn’t JF injected the money and why would JF prefer to go for a loan instead of shares?

How about this for a conspiracy theory…………

Surely the only answer to that is he wants it to be a loan so he can ask for his loans to be repaid at some point, therefore holding a gun to any future investors head. Anyone wanting to join the board will face the prospect of having to find enough money to pay off JF's loans, as well as funding the club. Effectively the loans are a far more powerful bargaining chip in takeover battle than a shareholding.

It is also worth remembering that JF has been withdrawing £162,500 each year paid into a pension fund (which grossed up for tax purposes are worth in excess of £250k for a 40% tax payer). Up to May 2010 he had received 3 of these payments and I believe there was another due in the last financial year (this will become apparent when the latest accounts are released). So potentially he has recouped £1m and the club still has loans of approximately £2m outstanding.

So, theoretically, if JF’s loans are repaid in full he will have lent £2m and recovered £3m over 7 years – not bad eh!

So is it possible that MP is trying to smoke JF out at the moment in order to ascertain whether the club will have to repay JF in the event of a new board taking over and reducing JF’s influence!

Quoted from petethemariner

Sorry, but as has been pointed out by others - to put 54% into shares IS putting money into the club
without strings attached, the money has been invested and cannot be taken away unless the shares are sold - to put your money into the club  in the form of a loan as JF apparently has done is  attaching strings, we only have his word that these loans will not be called in.

Oh dear - we are beholden to the word of a Conservative politician. The future is grim...

Quoted from thebigeasy

And therein lies the problem - firstly JF, according to MP, has still to put £350k into the club in one way, or another.
If JF invests this money and buys shares like MP then he will regain the majority shareholding, which MP seems comfortable with. So why hasn’t JF injected the money and why would JF prefer to go for a loan instead of shares?

How about this for a conspiracy theory…………

Surely the only answer to that is he wants it to be a loan so he can ask for his loans to be repaid at some point, therefore holding a gun to any future investors head. Anyone wanting to join the board will face the prospect of having to find enough money to pay off JF's loans, as well as funding the club. Effectively the loans are a far more powerful bargaining chip in takeover battle than a shareholding.

It is also worth remembering that JF has been withdrawing £162,500 each year paid into a pension fund (which grossed up for tax purposes are worth in excess of £250k for a 40% tax payer). Up to May 2010 he had received 3 of these payments and I believe there was another due in the last financial year (this will become apparent when the latest accounts are released). So potentially he has recouped £1m and the club still has loans of approximately £2m outstanding.

So, theoretically, if JF’s loans are repaid in full he will have lent £2m and recovered £3m over 7 years – not bad eh!

So is it possible that MP is trying to smoke JF out at the moment in order to ascertain whether the club will have to repay JF in the event of a new board taking over and reducing JF’s influence!

very interesting bigeasy and very plausible. even more so if you add into the equation 1)pete's equally plausible theory that fenty is looking for a way out, 2 ) tarka, who does speak to jf regularly,saying that he's just got sick and tired of the pressure,hasle and abuse and 3) chrisloz's interesting guestimates of f & p's worth - they indicate that fenty has committed 15-20% of his worth whilst parker has spent the equivalent of 2.5%. this means fenty has some pretty serious finances invested in gtfc whilst for parker it's a hobby, a play thing which isn't costing him that much money

so could we surmise that fenty wants to get out of the hole he's dug himself into and will do so if he can get a couple of million back and that whilst parker could easily afford to do that, he certainly wants to avoid that expenditure if at all possible? last nights interview therefore is part of parker's srategy to get fans worried and give negative info about fenty, so increasing the pressure on fenty to give ground, which in turn decreases the likelihood of parker having to pay him off?

Quoted from Red mariner

hasn't he bought shares with the money hes put it ??  Not really putting his money in more of a loan I would say  

Are you for real? buying unissued shares is a donation, John Fenty on the other hand has loaned the club money.

Quoted from forza ivano

very interesting bigeasy and very plausible. even more so if you add into the equation 1)pete's equally plausible theory that fenty is looking for a way out, 2 ) tarka, who does speak to jf regularly,saying that he's just got sick and tired of the pressure,hasle and abuse and 3) chrisloz's interesting guestimates of f & p's worth - they indicate that fenty has committed 15-20% of his worth whilst parker has spent the equivalent of 2.5%. this means fenty has some pretty serious finances invested in gtfc whilst for parker it's a hobby, a play thing which isn't costing him that much money

so could we surmise that fenty wants to get out of the hole he's dug himself into and will do so if he can get a couple of million back and that whilst parker could easily afford to do that, he certainly wants to avoid that expenditure if at all possible? last nights interview therefore is part of parker's srategy to get fans worried and give negative info about fenty, so increasing the pressure on fenty to give ground, which in turn decreases the likelihood of parker having to pay him off?

if Fenty gets any money out of the club it will be sickening.