halfcenturyup
Well-Known Member
- Joined
- 12 Oct 2009
- Messages
- 14,991
I'm musing that if I had made a loan at zero interest and secured it on the club's assets, I'd be less than willing to convert the loan to unsecured shares so that, in the event of Insolvency, my investment in the club would be the last thing to get paid. As you said, Insolvency is unlikely but no billionaire ever got rich by underestimating risk.
But, as I said, I haven't checked to see if they really are no strings, interest free loans. Seems too good to be true...
:) If I was a billionaire and was risk-averse, I wouldn't invest in a football club.
And I didn't say convert the loans to share capital, which would make no difference for PSR other than notional interest, I said write the loans off as part of a shareholder restructuring so that they become income for PSR. It would also increase shareholder equity, of course (in the same way a loan to share conversion would).
May work, although I wasn't actually being 100% serious tbf ....
