Loans for equity?

The reason I said it didn't matter is precisely because the owner who makes a loan can convert it to equity whenever he wants. It doesn't matter because the guy has more money than just about anyone on earth. He can classify it any way he wants and deal with the tax ramifications (whatever they may be) to boot. Loaning money to a football club is pretty worthless. They don't have much in the way of tangible assets if they falter. And I'm sure a guy with hundreds of billions isn't about to let them fail. So if the club is sold what pretel is the 100% owner going to recover that's any bit different than if he is the only creditor. Answer, nothing.

As for UEFA - the rule is ridiculous because it entrenches the clubs with the biggest turnover - hence Wenger's rant about City and Chelsea (please, please don't challenge the status quo might as well be his calling card). But there are ways around that as well - namely the Shiek can become a huge source of actual "revenue" for the club if he so desires. Hey, we're 10 million short of profitable this year. Time to buy some shirts. I'm only half kidding. Not much UEFA can do about it.
 
Or you can do liverpool and uniteds favourite way of getting some cash short termn which is to renogotiate your loan so you play less this month and more next month.
 
anyone got the latest on PRATini's plans?..i know he signed a document with
some belgian prick a while back in realtion to his plans
 
Footyblue said:
The reason I said it didn't matter is precisely because the owner who makes a loan can convert it to equity whenever he wants.
You can if you own 100% of the shares but Wardle couldn't do that as he already held 29.9% and taking on extra shares above the 30% level would have forced him to make an offer for the rest of the club's shares.
 

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