Debt to equity from Tan confirmed / still £55m owed

- Vincent Tan completes converting £42m of debt to equity. Still £55m owed to him.

- Also money owed to Tormen Finance, Mehmet Dalman has significant interest in that.

- Debt to equity doesn't affect profit and sustainability rules, but does reduce club's debt.


viewtopic.php?f=2&t=249691


Vincent Tan has converted £42million of Cardiff City's debt into equity in a significant move which many supporters will view as a major statement about the club's long-term future.

The Cardiff owner has long maintained he intends to leave the Bluebirds debt-free and WalesOnline understands the latest move reduces the amount owed directly to him to £55m as of May 31, 2026. Money owed to Tan does not accrue any interest.

The debt-to-equity conversion has not yet appeared on the public record due to delays at Companies House.

The move comes a year after Tan resisted three public takeover approaches for the club, bids which were viewed by the Cardiff board as derisory.

Shareholders were recently informed that Cardiff had increased its authorised share capital by 75 million shares. While that move does not itself create new shares, it provides the club with the authority to issue them over the next five years.

The increase in authorised share capital paved the way for the debt conversion, with £42m of debt now replaced by equity in the club.

The move is significant because it substantially reduces Cardiff's debt burden and improves the overall strength of the club's balance sheet. A lower debt figure is generally viewed as reducing risk and increasing the underlying value of a business, particularly when the debt is owed to a single major creditor.

It also represents a sizeable chunk of the money Tan has invested into the club being permanently converted into shares rather than remaining repayable debt.

Cardiff do, however, continue to have other creditors. Among them is Tormen Finance, a company in which chairman Mehmet Dalman has a significant interest.

The conversion will inevitably dilute the holdings of existing shareholders because additional shares have been created. However, the scale of the debt reduction is likely to be viewed by many supporters as a positive development given Tan's long-standing pledge to eventually eliminate the debt he is owed.

But while £42m is a substantial figure, the conversion will not necessarily increase Cardiff's spending power this summer and will have no direct impact on transfer plans.

It also does not affect Profit and Sustainability calculations, or Squad Cost Rules as it will be named in the upcoming season, because the transaction is not recorded through the profit and loss account.

Instead, it is purely a balance-sheet adjustment, converting a liability into share capital. In simple terms, debt has been removed from the balance sheet and replaced with equity in the club.

In notes accompanying the accounts for the financial year ending on 31 May 2025, Cardiff's liabilities stood at £161m. That number will now have decreased significantly in light of this news.

viewtopic.php?f=2&t=249691

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

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Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

Haha yea me to was just easier to have it whittled down into a couple of paragraphs rather than posting each piece from the 3 websites I was reading , but you get the gist of it debt to equity doesn't count towards ffp

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

Haha yea me to was just easier to have it whittled down into a couple of paragraphs rather than posting each piece from the 3 websites I was reading , but you get the gist of it debt to equity doesn't count towards ffp

Yeah I get that, thanks mate

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

I never use A.I can be very inaccurate.... this is my own thoughts on matter!

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

I never use A.I can be very inaccurate.... this is my own thoughts on matter!

Well I have a Google phone and I'm ashamed to say I use Gemini for a lot

Are you sure the debt conversion wont effect the financial sustainability rules? I am not sure myself but I thought the new rules allowed clubs to spend more if the owner put the money in as equity. Although he hasn't actually put in any cash as such he has effectively done the equivalent of this by the conversion. If not and he now puts some cash in as a loan to buy players - a big if- he has gone about it the wrong way. He should have used the cash to buy the equity.

This is from WalesOnline so I assume they've checked it and found out it doesn't affect PSR.

This action by Tan must have an effect on the new profitability rules as owners allowed to put in more money plus city's ratio of debt to income must be better now in championship as reduced wages so far.... whatever it is the fact remains this is a good thing for city

This is what ai says

Thanks, but I'm hoping the club aren't using Gemini to find things out!

I never use A.I can be very inaccurate.... this is my own thoughts on matter!

Well I have a Google phone and I'm ashamed to say I use Gemini for a lot

Tbh ned I know what A.I does in search engines.. but using it for other things got no chance.

So what's the overall debt as a result? Summarised earlier in the year here: https://www.bbc.co.uk/sport/football/ar ... rxezv4wg4o