Director's Loans to Football Clubs

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Whilst our non-Chairman is demanding full repayment of every penny here's an example of what every other owner in football does. Write off their loans. Marcus Evans at Ipswich Town has written off around £100m in exchange for a 5% stake in a company that bought the club from him (valued at £30m). So his new stake is technically valued at £1.5m.

We all know personality has a part to play...

Quoted from GollyGTFC

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Whilst our non-Chairman is demanding full repayment of every penny here's an example of what every other owner in football does. Write off their loans. Marcus Evans at Ipswich Town has written off around £100m in exchange for a 5% stake in a company that bought the club from him (valued at £30m). So his new stake is technically valued at £1.5m.

That's not what every other owner in football does. If it was, then no club would go into administration. Bolton was sold for £1 on the basis that the new owners paid back the loans which were substantially more than the value of the club. It's admirable what the Ipswich owner did, but it is not the norm.

There's a lot of background missing from that information. He bought the £32M debt for £8M when he took over the club. He still owns land that the club rent. He got paid £21M to take on his debt.

The amount of debt shown on that tweet is £50M, not £95M. Where does that number come from? Because at £50M he's not really lost anything

Also, he bought the club for £1. Invested £12M through new shares and sold his share for £40M.

He's had £28M profit from the sale. £24M extra from buying cheap debt. £21M from selling the debt. And been charging 5.4% interest on the debt since 2007. Plus 5% in the new company and whatever land he still owns that the club use.

I'm sure he's lost money, but let's not call this a charitable donation. He's recouped a huge amount of money that was spiralling out of control.

Quoted from pen penfras

There's a lot of background missing from that information. He bought the £32M debt for £8M when he took over the club. He still owns land that the club rent. He got paid £21M to take on his debt.

The amount of debt shown on that tweet is £50M, not £95M. Where does that number come from? Because at £50M he's not really lost anything

Haven’t had chance to look at this in any detail, but the £95m came from £45m payable in over 12 months, and £50m in under 12 months. Two different pages on that Tweet.  Obviously that assumes the short-term debt wasn’t repaid.

Quoted from pen penfras

That's not what every other owner in football does. If it was, then no club would go into administration. Bolton was sold for £1 on the basis that the new owners paid back the loans which were substantially more than the value of the club. It's admirable what the Ipswich owner did, but it is not the norm.

It is norm. And your little Bolton example is factually incorrect to the point that it's an out right lie. Not only did Eddie Davies write off debts totalling £197.9m, he then bailed the club out when they faced administration under the new owner over a £4.8m debt by providing them with a bridging loan when he was terminally ill and just 4 days before he died. He actually offered to repay the loan as a gift but the new owner rejected the offer.

Quoted from pen penfras

There's a lot of background missing from that information. He bought the £32M debt for £8M when he took over the club. He still owns land that the club rent. He got paid £21M to take on his debt.

The amount of debt shown on that tweet is £50M, not £95M. Where does that number come from? Because at £50M he's not really lost anything

It's okay arguing the toss with me, but Kieran Maguire is the most respected expert in football finance not employed within the game in the country and teaches the subject at the University of Liverpool. He has acted as adviser to countless people looking to take over football clubs and is regularly on BBC News whenever there's a football finance issue in the news.

But you know better from a couple of screen grabs?

Quoted from GollyGTFC

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Whilst our non-Chairman is demanding full repayment of every penny here's an example of what every other owner in football does. Write off their loans. Marcus Evans at Ipswich Town has written off around £100m in exchange for a 5% stake in a company that bought the club from him (valued at £30m). So his new stake is technically valued at £1.5m.

pen penfras the point I believe Golly is making, regardless of your posts about the financial side, is the owner is accepting that he will lose money but the club may prosper under new ownership.

Our owner, who made friends with a convicted criminal, wants to do the opposite. He wants every last penny of the money he put in, plus the value of trust shares given to him, and will not take any loss. He is willing to do this and has shown with the club's precarious position, he does not care if the club prospers with new owners or not.

If he did care we would have had new owners by now. There is a big difference between saying you care ( Fenty) and showing you care (Evans).

Quoted from GollyGTFC

It's okay arguing the toss with me, but Kieran Maguire is the most respected expert in football finance not employed within the game in the country and teaches the subject at the University of Liverpool. He has acted as adviser to countless people looking to take over football clubs and is regularly on BBC News whenever there's a football finance issue in the news.

But you know better from a couple of screen grabs?

But he never denied any of those things. He just says that £95M debt has been wiped off. The other things aren't part of the accounts, because they aren't things that would show up. But they are in the press.

All he does in analyse the accounts and give an overview. Which he actually tweets later to correct the fact that £21M of it was repaid. The rest of it is in the press. Take a look. But it doesn't fit your vision of every other football owner is in it to give a bottomless pit of money to their club whilst Scrooge McFenty holds us to ransom.

Not to mention how much that debt has increased as a result of 5.4% interest charged every year since 2007. That has more than doubled the starting debt of £32M, let alone the addition of new debt. He really isn't losing out at all when judged vs Fenty who is getting a similar deal