Debt to Equity?

no he would he would lose out as the % he holds would be considerable less.

only if there are more shares issued isacs would lose out

You sure Wez?

I'm expecting the share value to drop slightly with the conversion. Then I'm expecting Tan to issue more shares therefore devaluing the value. Tan hinmself will make up for this by buying more shares for himself. This is now he will keep his value. Then I expect other investors to come onboard which will secure the club. Isaac will then lose out big time either way unless he hangs around for quite a while.

yes if no new shares are issued the company will be valued more due to there being no debt and therefore no liabilties ,hence the shares will be come valuable but if say cardiff city issued tan millions and millions of new shares then any existing shares would be devalued

Agree with you there although i cant see how £100 million of debt can be converted to shares when the asset of the club is far less than that. This is why I think whatever conversion takes place there will be some debt left therefore reducing the value.

Tan will create more shares, attracking more investors and will use that money to eventually write of the remaining debt. That's how I think it will work.

the assets in the premier league is worth well over 200 million if we stay in it ,team ,stadium,tv money etc but if we go down things would be different but like anything in life you worth what ever anyone is willing to pay you

you can issue shares up to a certain. i know a company i bought shares in a few years ago had something like 900m of them!

all it means is that the individual value of each share will be less, but he can still do it for sure.

The total share value must cover the asset value of the club. Is this not right?

no he would he would lose out as the % he holds would be considerable less.

only if there are more shares issued isacs would lose out

You sure Wez?

I'm expecting the share value to drop slightly with the conversion. Then I'm expecting Tan to issue more shares therefore devaluing the value. Tan hinmself will make up for this by buying more shares for himself. This is now he will keep his value. Then I expect other investors to come onboard which will secure the club. Isaac will then lose out big time either way unless he hangs around for quite a while.

yes if no new shares are issued the company will be valued more due to there being no debt and therefore no liabilties ,hence the shares will be come valuable but if say cardiff city issued tan millions and millions of new shares then any existing shares would be devalued

Agree with you there although i cant see how £100 million of debt can be converted to shares when the asset of the club is far less than that. This is why I think whatever conversion takes place there will be some debt left therefore reducing the value.

Tan will create more shares, attracking more investors and will use that money to eventually write of the remaining debt. That's how I think it will work.

the assets in the premier league is worth well over 200 million if we stay in it ,team ,stadium,tv money etc but if we go down things would be different but like anything in life you worth what ever anyone is willing to pay you

Well that is something that will be considered but the problem is it is not guaranteed becuase as you said we could go down and the £200 million becomes something like a third of that. Thats the risk in investing in shares I suppose.

you can issue shares up to a certain. i know a company i bought shares in a few years ago had something like 900m of them!

all it means is that the individual value of each share will be less, but he can still do it for sure.

The total share value must cover the asset value of the club. Is this not right?

yes but...


lets say the club is valued at 100m and there are 100m shares.... so thats a quid each?

if they issue another 100m shares then each one is now worth 50p the value of the company stays the same, just the share price will reduce drastically.

you can issue shares up to a certain. i know a company i bought shares in a few years ago had something like 900m of them!

all it means is that the individual value of each share will be less, but he can still do it for sure.

The total share value must cover the asset value of the club. Is this not right?

yes but...


lets say the club is valued at 100m and there are 100m shares.... so thats a quid each?

if they issue another 100m shares then each one is now worth 50p the value of the company stays the same, just the share price will reduce drastically.

Just read the Liecester article posted by Wez.

Basically Tan will be wiping off about half his investment here.