Don’t worry, we have two very rich directors?

[NewClaret]

Question for CP and others in the know:

Where are all the funds used to buy the club? Are they all literally in MG/JB’s bank account or somewhere within the complex corporate structure? (Appreciate nobody can answer this with certainty)

Media reports suggested Garlick May retake the reigns in the event of relegation. So is that what we now face?

Ultimately, our debt is presumably equalled by the wealth of two of our directors. I’d like to hope as a minimum they’ll do the right thing and reinvest some to ensure financial stability - particularly since a swift PL return is likely in their own long term financial interests.

[Paul Waine]

Question for CP and others in the know:

Where are all the funds used to buy the club? Are they all literally in MG/JB’s bank account or somewhere within the complex corporate structure? (Appreciate nobody can answer this with certainty)

Media reports suggested Garlick May retake the reigns in the event of relegation. So is that what we now face?

Ultimately, our debt is presumably equalled by the wealth of two of our directors. I’d like to hope as a minimum they’ll do the right thing and reinvest some to ensure financial stability - particularly since a swift PL return is likely in their own long term financial interests.

Hi New, interesting question.

What we know based on public domain data:

84% of club shares were owned by the former directors. MG owned (just less than) 50% of the club, JB 25%.

ALK had paid £102 million, as at 31st July 2021. Further instalments were due at that date. No public information that they have been paid. Most likely remain unpaid.

In simple figures, MG has banked £50 million and JB £25 million. Possibly, MG has reinvested some of his money in ALK/VSL. Both may have capital gains tax to pay.

MG held his BEC shares in two or three corporate entities, Clarets Go Large was one of them.

JB held significant number of his shares in his commodity business, Freight Investor Services.

Both these companies should large cash balances in their latest set of accounts. Things may have changed since then.

We need to wait and see what happens next.

UTC

[Longtimeclaret]

Presumably both of these keen Claret fans will be itching to reinvest in the Club

[NewClaret]

Thanks Paul, really appreciate the response.

I can’t claim to understand it all, but at its highest level, I see it that:

- the purchase price probably reduces significantly in the event of relegation. What was owed may not be now, or payment timescales may have been deferred.

- and/or ALK may now hold the option for repayment in shares, meaning previous holders stakes would grow again.

- the £102m must exist somewhere and is unlikely have gone directly to either individual for tax reasons. Therefore may be reinvested if the club were in any deep financial trouble. I personally think there is a moral obligation to do so, but I appreciate there are few morals in business.