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Significant investment by FPP has been made

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phunboy said:
This always makes me laugh its documented that the deal for grigg only reaches £3m if we get to the premier within his current contract. given that we arent finding it easy to get out of league 1 with him in the team it's highly unlikely that we will have to pay the full amount for him
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It's £4m in the Premier League
 

Just noticed there's a parallel capital restructuring in SAFC
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The overall effect of these changes will be to clear the negative balance in retained earnings. If and when they club makes profits, this would allow the club to pay dividends in future. It may be that the Americans are initially looking at creating non-voting preference shares. This would leave the ownership situation unchanged as regards voting shares, but allow them to receive dividends. In some ways, it's similar to the financing arrangements for the Florida Marlins. I must stress this is total speculation on my part - I have no evidence that this is what is intended. But the capital changes would make that more possible.
 
I know f'all, but I did say weeks ago that the available information suggested a holding stake to deter others with a view to making a decision on full ownership at a later stage. Glad things are moving, it's not the nirvana we had been dreaming off, but great news us and the potential of bigger things around the corner.
 
This is good news, but some warning in that it is also going to be very similar to how Short structured his investments. This will likely be a long term loan or bond with an option to convert into equity at some point in the future. It is also likely to be very expensive from an interest perspective. Donald's plan is likely to get promoted and sell the club before the loan is due. The flip side is that its also a common structure investors use to understand a risky investment in greater detail. If we get promoted and perform well then the Americans may well decide they like what they see and convert their debt into equity.
 
Roger said:
I am not so sure about that. The rumours a couple of weeks ago were about a secured loan - which had me wondering what it was secured against.

Methven's statement says

"Our agreement is confidential and I wouldn’t want to speak for the investors on that [long-term plan], but obviously this is a very large sum of money for an investment outside the Premier League and will enable the club to have strategic certainty for the next couple of years"

Which basically tells us nothing and unfortunately is just going to lead to more rumours and conjecture.
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I can only assume it's a loan to Madrox and is secured against Madrox's assets, which is SAFC. So if we do well we can repay it and they might decide to come on board alongside Donald as shareholders. If we do badly and can't repay it they take the asset (SAFC) and Donald pretty much gets kicked out. This might all be bollocks, I'm no accountant, but to me it sounds like them saying to Donald "if you want to stay here, prove you are capable, if not you're out"
 
Zak's Dad said:
That's the spirit
Post number 6 and Phil is in with a negative!

:lol:
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Entirely predictable. He doesn't want to entertain the idea that "significant investment" might be a good thing and a basis for optimism.:lol:
 
Guinness Guzzler said:
I can only assume it's a loan to Madrox and is secured against Madrox's assets, which is SAFC. So if we do well we can repay it and they might decide to come on board alongside Donald as shareholders. If we do badly and can't repay it they take the asset (SAFC) and Donald pretty much gets kicked out. This might all be bollocks, I'm no accountant, but to me it sounds like them saying to Donald "if you want to stay here, prove you are capable, if not you're out"
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There are no recent filings for Madrox.
 
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