debt to equity - lets assume its happening...

Starting from a level playing field. What do we think is Tans strategy for keeping the club alive and well and competing in the top half of the premiership? Yes. I believe he has more investors waiting in the wings but long term? Where does he think the revenue will come from. I dont believe he'll run the club at a loss.

Starting from a level playing field. What do we think is Tans strategy for keeping the club alive and well and competing in the top half of the premiership? Yes. I believe he has more investors waiting in the wings but long term? Where does he think the revenue will come from. I dont believe he'll run the club at a loss.

I agree he won't run the club at a loss. I doubt that's his long term plan.
Maybe he plans to push us on and sell his share at a profit (can that be done in football ?)
Maybe the advertising revenue from Malaysia/China is gonnna make him a profit (there and here)
Maybe other investors would be interested in taking over once we are an established Premier League team ?

Good question , I could only provide "maybes"

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Maybe he runs the club at a profit thanks to new tv money and as the majority shareholder takes out a large dividend each year but still not a short term profit

Can anyone see him actually doing this any time soon?

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Premier League clubs are only worth £40m ?
Genuine question ?
Surely the tv money makes it more than that ?

Lets not assume...

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Premier League clubs are only worth £40m ?
Genuine question ?
Surely the tv money makes it more than that ?

That's just what I read the reading deal was valued at last summer and we are pretty much in exactly the same situation. The TV money at £60m is only guaranteed for one season.

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Then you should pay attention to what Barclays are going to do in order to raise 5.8billion because my guess is thats the way Tan will acheive his debt to equity plan.(on a slightly smaller scale)

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Then you should pay attention to what Barclays are going to do in order to raise 5.8billion because my guess is thats the way Tan will acheive his debt to equity plan.(on a slightly smaller scale)

Say the £120m debt is the full value of a share offering that could be floated somewhere. If Tan could offer the full amount and offer the shares at a high enough price that the floatation returns more than £120m then he would make a profit. But I just don't believe that he could do an offering much more than £10-£20m because I don't believe there is enough value in the club as it stands. Win a few champions league trophies and the worlds his oyster but can't see it myself.

He could lump it together and offer shares in a group of his businesses but I think the football club would just put investors off and reduce the value he could get for the shares if it was just his stronger better performing businesses.

If he does convert his debt to equity he will have £120m of equity therefore rendering all other share holdings worthless. I am assuming he would have to take over full control with 95%+ of the shares. He would then have to try and make that £120m investment into profit. Seeing as the club is probably only worth about £40m that's not an easy thing to do. Selling some of his share holding to new investors would be one way to make money or floating some shares on a stock market. I really can't see how he can make a profit on the £120m in the next five years at least.

Then you should pay attention to what Barclays are going to do in order to raise 5.8billion because my guess is thats the way Tan will acheive his debt to equity plan.(on a slightly smaller scale)

Barclays can sell their shares because it's they are in the top 30 biggest firms in britain, therefore pension fund managers have no choice but to buy the shares due to a lack of competition. CCFC are in nothing like that situation i'm afriad sneggy.

Barclays also seem to be doing some of it by offering bonds. I can't see many people wanting cardiff city backed bonds. This also doesn't seem to be debt to equity just swapping short term liabilities for longer term liabilities which is what man Utd did.

Lets not assume...

Yeh righto. Shall we also stop all posts about potential signings. Which player might link better with another player. What formations malky might want to play. Id be tempted to say all football messageboards would die on their arse. But lets not assume eh? Silly man

Lets not assume...

Yeh righto. Shall we also stop all posts about potential signings. Which player might link better with another player. What formations malky might want to play. Id be tempted to say all football messageboards would die on their arse. But lets not assume eh? Silly man

Chuckles has been ruined here. I wonder how he's gonna come back from this. The veteran got him on the ropes.

Lets not assume...

Yeh righto. Shall we also stop all posts about potential signings. Which player might link better with another player. What formations malky might want to play. Id be tempted to say all football messageboards would die on their arse. But lets not assume eh? Silly man

Chuckles has been ruined here. I wonder how he's gonna come back from this. The veteran got him on the ropes.

He will just backtrack dont you worry