BlueSam
Well-Known Member
I am not a business pro, but I thought the Sheik was our 100% owner, so how can he possibly acquire any more equity in the company?
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Loans for equity?
- Thread starter BlueSam
- Start date
Prestwich_Blue
Well-Known Member
We just issue more shares to himself. As he owns it he can do this quite easily. Companies will usually have an authorised share capital, which is the maximum amount they can issue, that is much higher than the share capital actually issued and bought by the shareholders. ADUG "buy" the extra shares for the additional amount they put in.BlueSam said:I am not a business pro, but I thought the Sheik was our 100% owner, so how can he possibly acquire any more equity in the company?
Bit like having a share in a racehorse. If there's 5 of you and a sixth person wants to join then he pays the other 5 for a share.
BlueSam
Well-Known Member
Prestwich_Blue said:We just issue more shares to himself. As he owns it he can do this quite easily.BlueSam said:I am not a business pro, but I thought the Sheik was our 100% owner, so how can he possibly acquire any more equity in the company?
So hes just increasing the price he paid for the club really?
so can this go on indefinitely?
EDIT just seen your edit, ahh makes sense
Southern KK
Well-Known Member
The other and more important point:
Loans are debt and therefore repayable and may even be secured, such as MUFC debts
Shares (or equity or, as US call them, stocks) are locked into the company. The investor can not get this money back unless he sells his shares to someone else or has to go through numerous legal routes to arrange for the company to bay them back, which the Companies Act makes quite difficult.
When the accounts are analysed the fact that this money is shares greatly increases the financial position of the company.
Loans are debt and therefore repayable and may even be secured, such as MUFC debts
Shares (or equity or, as US call them, stocks) are locked into the company. The investor can not get this money back unless he sells his shares to someone else or has to go through numerous legal routes to arrange for the company to bay them back, which the Companies Act makes quite difficult.
When the accounts are analysed the fact that this money is shares greatly increases the financial position of the company.
Bluemoon115
Well-Known Member
Also the club selling shares is a genuine way of making revenue, so we are spending within our means.
No need to worry about us anymore Mr Wenger. Now all you have to do is worry about what we'll do to you.
;-P
No need to worry about us anymore Mr Wenger. Now all you have to do is worry about what we'll do to you.
;-P
newcrossblue
Well-Known Member
- Joined
- 16 May 2005
- Messages
- 335
very different to Irobbedmeselfrich who put the debt on to Chelsea and left it there, as far as I am aware.
Prestwich_Blue
Well-Known Member
No - it's not additional revenue. would show in the balance sheet and the cash flow statement but not the profit & loss account.Bluemoon115 said:Also the club selling shares is a genuine way of making revenue, so we are spending within our means.
No - he's just done the same. So us and Chelsea are in the same boat - make a loss but no debt.newcrossblue said:very different to Irobbedmeselfrich who put the debt on to Chelsea and left it there, as far as I am aware.
Ronnie the Rep
Well-Known Member
If I understand correctly what ADUG did, they issued shares to the value of the loss and the debts. If this is right then we are in a great position with a very strong balance sheet