Forget Red shirts, its the Red bank balance worrying us
Thu May 15, 2014 7:22 pm
http://www.walesonline.co.uk/sport/foot ... nt-7127908
The bank balance is the biggest worry for Vincent Tan and Cardiff City fans this summer - Steve Tucker
Our man Steve Tucker takes a look at some of the things Vincent Tan has said prior to revealing he will leave the Bluebirds in £100m of debt while converting a portion of it to equity
It has not just been the change of shirt colour that has focussed the anger of Cardiff City supporters on owner Vincent Tan .
Plenty were opposed to the change from blue to red from the start, the meddling with tradition too bitter a pill to swallow.
But those who reluctantly went along with the rebrand have found what little tolerance they had eroded by one vital promise that has failed to materialise.
One which looks like it never will following Tan’s recent announcement that he is considering converting only a third of his debt to equity.
The assurances surrounding the rebrand that Tan was to turn the debts owed to him by the club into equity in the form of shares was, for many, what swung the deal.
Cardiff, for decades, had seemingly staggered from one financial disaster to another.
Memories of unpaid tax bills and subsequent transfer embargoes were still fresh in the minds of City fans, but here came a lifeline, a ray of hope set to safeguard the very future of the club.
Cardiff City debt free? What had seemed an impossibility was now set to happen. Or so we were promised.
Tan’s delaying of that promise, and the fact he has seemingly partially reneged on it, is wholly unacceptable to this commentator.
DO YOU WANT A RETURN TO BLUE? SIGN THE SOUTH WALES ECHO'S PETITION
What Tan has said...
“It was intended for Vincent Tan to then transfer the debts due to him into equity and drive revenues through aggressive marketing.”
Open letter from (former chairman) Dato Chan Tien Ghee after initial opposition to the rebrand, May 11, 2012
“We are talking to Sam Hammam to try and resolve the Langston issue.
“We are days away from an agreement and then we can convert all the loans to equity.”
Vincent Tan, July 22, 2013
“We are in the process of turning loans into equity. We are talking to shareholders now and after that I will convert my loan into equity. It will take the club to almost debt-free, probably in the next couple of months, God willing.”
Vincent Tan, August 15, 2013
“Mr Tan gave some cultural, but no commercial reasons for the rebrand and told us that there would be no debt to equity conversion until after the settlement of the current legal dispute with the former manager (Malky Mackay).”
Minutes of a Cardiff City Supporters Trust meeting, March 19, 2014
“I will convert some of my debt to equity, but not all because the amount is very big. The club owes me maybe £120m and I put in £140m or £150m. Maybe I will convert £50m and leave £100m debt.”
Vincent Tan, May 11, 2014
Vincent Tan speaks out on Cardiff City kit
In his latest interviews, the billionaire businessman now reveals he has plunged around £150m into the club so far.
Let’s not forget that this for the large part is in the form of loans. Tan’s boasts that he has been for some time forgoing his seven per cent interest on the money is way too little and too late to impress me.
He will have to excuse me if I don’t bow my head in gratitude at that gesture.
Because now the assurance that the whole amount would be converted in exchange for the rebrand has been unceremoniously booted into touch.
Now, apparently, only a third will be converted into shares by Tan, who calmly admits this will leaving the club owing £100m to him. It is all a far cry from two years ago when Tan was aiming to push his rebrand of the club shirt and badge through.
When fans initially opposed the rebrand they were told, a real opportunity would be missed because if they agreed, Tan would convert all his loans and make the club debt free. That carrot was dangled to change supporters’ hearts and minds and in many cases, not surprisingly, it worked.
Red or dead hysteria afflicted many with a love for the Bluebirds. It was hard to think straight.
So, as we know, the rebrand went ahead, but the debt to equity conversion did not.
The excuses started instead.
The move could not be made until the matter of the loan notes owed to Langston was dealt with.
Once that was completed, the deadline was pushed back again. This time it seemed it could not be done until the legal dispute with former manager Malky Mackay was sorted.
That was put to bed last week only for Tan to come out and move the goalposts again.
Everyone has their own reasons for joining the Echo’s ‘Back to Blue’ campaign and it is not just about shirt colour.
Some are vexed by Tan’s alleged meddling in football matters last season that many believe contributed to Cardiff’s poor campaign and crushing relegation.
But the debt to equity sidestep is something that has also helped unite supporters who genuinely fear for the future of their club.
With the amount of debt Tan has saddled the club with, the colour of the shirts seems virtually immaterial.
In the end, there may be no team left to actually play in them.
The bank balance is the biggest worry for Vincent Tan and Cardiff City fans this summer - Steve Tucker
Our man Steve Tucker takes a look at some of the things Vincent Tan has said prior to revealing he will leave the Bluebirds in £100m of debt while converting a portion of it to equity
It has not just been the change of shirt colour that has focussed the anger of Cardiff City supporters on owner Vincent Tan .
Plenty were opposed to the change from blue to red from the start, the meddling with tradition too bitter a pill to swallow.
But those who reluctantly went along with the rebrand have found what little tolerance they had eroded by one vital promise that has failed to materialise.
One which looks like it never will following Tan’s recent announcement that he is considering converting only a third of his debt to equity.
The assurances surrounding the rebrand that Tan was to turn the debts owed to him by the club into equity in the form of shares was, for many, what swung the deal.
Cardiff, for decades, had seemingly staggered from one financial disaster to another.
Memories of unpaid tax bills and subsequent transfer embargoes were still fresh in the minds of City fans, but here came a lifeline, a ray of hope set to safeguard the very future of the club.
Cardiff City debt free? What had seemed an impossibility was now set to happen. Or so we were promised.
Tan’s delaying of that promise, and the fact he has seemingly partially reneged on it, is wholly unacceptable to this commentator.
DO YOU WANT A RETURN TO BLUE? SIGN THE SOUTH WALES ECHO'S PETITION
What Tan has said...
“It was intended for Vincent Tan to then transfer the debts due to him into equity and drive revenues through aggressive marketing.”
Open letter from (former chairman) Dato Chan Tien Ghee after initial opposition to the rebrand, May 11, 2012
“We are talking to Sam Hammam to try and resolve the Langston issue.
“We are days away from an agreement and then we can convert all the loans to equity.”
Vincent Tan, July 22, 2013
“We are in the process of turning loans into equity. We are talking to shareholders now and after that I will convert my loan into equity. It will take the club to almost debt-free, probably in the next couple of months, God willing.”
Vincent Tan, August 15, 2013
“Mr Tan gave some cultural, but no commercial reasons for the rebrand and told us that there would be no debt to equity conversion until after the settlement of the current legal dispute with the former manager (Malky Mackay).”
Minutes of a Cardiff City Supporters Trust meeting, March 19, 2014
“I will convert some of my debt to equity, but not all because the amount is very big. The club owes me maybe £120m and I put in £140m or £150m. Maybe I will convert £50m and leave £100m debt.”
Vincent Tan, May 11, 2014
Vincent Tan speaks out on Cardiff City kit
In his latest interviews, the billionaire businessman now reveals he has plunged around £150m into the club so far.
Let’s not forget that this for the large part is in the form of loans. Tan’s boasts that he has been for some time forgoing his seven per cent interest on the money is way too little and too late to impress me.
He will have to excuse me if I don’t bow my head in gratitude at that gesture.
Because now the assurance that the whole amount would be converted in exchange for the rebrand has been unceremoniously booted into touch.
Now, apparently, only a third will be converted into shares by Tan, who calmly admits this will leaving the club owing £100m to him. It is all a far cry from two years ago when Tan was aiming to push his rebrand of the club shirt and badge through.
When fans initially opposed the rebrand they were told, a real opportunity would be missed because if they agreed, Tan would convert all his loans and make the club debt free. That carrot was dangled to change supporters’ hearts and minds and in many cases, not surprisingly, it worked.
Red or dead hysteria afflicted many with a love for the Bluebirds. It was hard to think straight.
So, as we know, the rebrand went ahead, but the debt to equity conversion did not.
The excuses started instead.
The move could not be made until the matter of the loan notes owed to Langston was dealt with.
Once that was completed, the deadline was pushed back again. This time it seemed it could not be done until the legal dispute with former manager Malky Mackay was sorted.
That was put to bed last week only for Tan to come out and move the goalposts again.
Everyone has their own reasons for joining the Echo’s ‘Back to Blue’ campaign and it is not just about shirt colour.
Some are vexed by Tan’s alleged meddling in football matters last season that many believe contributed to Cardiff’s poor campaign and crushing relegation.
But the debt to equity sidestep is something that has also helped unite supporters who genuinely fear for the future of their club.
With the amount of debt Tan has saddled the club with, the colour of the shirts seems virtually immaterial.
In the end, there may be no team left to actually play in them.
Re: Forget Red shirts, its the Red bank balance worrying us
Thu May 15, 2014 7:51 pm
If he converted £150 million into share equity, what would this value the club at? How many shares or percentage of the share does Tan currently have? I don't think there is enough equity in the club to warrant spending £150 million on gaining more control. When he promised his debt to equity the figure was around £50 million, so is he not paying the going rate for full control. If he did raise more shares does the lessen the value of his current shares. I'm no financial expert, but surely someone on here can explain this to me.
Re: Forget Red shirts, its the Red bank balance worrying us
Thu May 15, 2014 8:23 pm
No takers? Tan can't just make £150 million disappear. Tax man and football authorities will ask some questions. There isn't enough equity in the club. It becomes a loan, with no interest, and is paid off over time through the various revenue streams open to the club. TV money. sponsorship, Stadium naming rights. etc. Most clubs are in debt, it's servicing them that's the problem. Our debt is interest free and not due at any given timescale. Very serviceable. Doesn't sound so bad, when put this way. 
Re: Forget Red shirts, its the Red bank balance worrying us
Thu May 15, 2014 10:04 pm
Think the problem is that all the headlines were that to change to red he will put £100m into the club and turn debt into equity and £50m is well short of the mark. He also quoted that we would be 'debt free' so again only a third of debt being cleared is way off the mark. Full of promises but can only put his trousers where his mouth is and not the money...