cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
If the deal involves a return of shares to JB/MG it presumes that there is a real possibility of ALK not being able to make the repayments.
No, it's the directors showing an element of prudence, but it doesnt suggest any additional risk to take those steps.
cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
Inorder to facilitate the purchase the of the club for about 150 million it was sold with £50,000,000 cash in the bank which was then used to make a first instalment on the purchase price.
Not all £50 million will have gone as first installment. It may have been demanded as payment to all the other directors (Kilby, Flood et al) though
cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
The remainder was to be paid by borrowing money against the clubs assets.
Like a mortgage, yes.
cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
This leaves ALK with a football club they have no money to invest in though it could be run with a surplus to pay the interest on the loan with their “business model”.
They will use the operational profits of the business to repay interest and capital on the loan.
cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
MG and JB don’t come out of this smelling of Roses but potentially with £150,000,000 in the bank.
Don't forget the other directors, who will have had their payout too. It is important to understand that MG and JB are still round though, and will regain control of the club if this goes Pete Tong for ALK.
cblantfanclub wrote: ↑Tue Feb 02, 2021 1:25 pm
ALK realise this isn’t going to work out quite how they planned (agents for one thing) and try to sell shares at a profit to free up some capital. It is done in a surprisingly unprofessional and panicky way for Wall St. experts who call it “crazy “that alerts the American media and hence the UK.
No neutral commentator thinks we’ve done a good thing. JB and MG are the bad guys for not investing money that was in the club and using this purchase as a way to get it out for themselves.
Don't get ahead of yourself just yet. It's been a quiet transfer window and the media are scraping the barrel for clicks. No news like bad news and all that.
ALK talk of developing the club and players which even a layman knows takes time and is a risky business with no money to invest in the years you are waiting for the talent to mature and raise the clubs profile.
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There are lots of unrealised revenue opportunities at BFC, which might surprise some how much additional revenue can be generated through additional sponsorships that we havent really chased. Think Man U with their official Toothbrush partner and so on.