Trust Welcomes Excellent News On Cardiff City Finances

Trust Welcomes Excellent News On Cardiff City Finances

http://www.ccfctrust.org/?p=5333

Cardiff City Supporters’ Trust chair Keith Morgan today highlighted two excellent pieces of financial news following a meeting yesterday with Cardiff City Chief Executive, Ken Choo.

Keith Morgan said: “Firstly, there has been a further massive conversion of debt due to the owner Vincent Tan into equity (shares). The amount involved is a huge £66.4m and is in addition to conversions of £8m in an earlier year and £12.7m in June 2017.

“The latest conversion took place at the end of May 2018 This is a major boost to the club’s balance sheet position and is a further great example of Vincent Tan’s continued commitment to the club.

“The second piece of good news is that the club has received formal confirmation that it was compliant with the Profitability and Sustainability (formerly Financial Fair Play) Rules for the 2017-18 season just ended.”

“In view of recent well publicised difficulties other football clubs have experienced with P&S (FFP) compliance, the fact that Cardiff City Football Club (CCFC) is running its financial affairs in a compliant manner is very encouraging.”

As someone who deals with football financial matters as part of his professional work as a director of Mazars a global accountancy firm , the issue of conversion of debt to equity is often a subject discussed with Ken Choo at regular meetings Keith Morgan has with him on behalf of the Trust. Meetings also discuss other key issues on a regular basis.

Has the club ever been in a better position?

Possibly when we were first promoted last time, before spending to stay up.

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Originally Posted by BLUEAWAY

Possibly when we were first promoted last time, before spending to stay up.

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No the club were not better off financially before spending to stay up.

Excellent news! Do we have a figure for the debt level after this?

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Originally Posted by Madlock

Excellent news! Do we have a figure for the debt level after this?

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Think I read 50 million somewhere, hopefully Keith will produce something later giving these sort of details.

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Originally Posted by the other bob wilson

Think I read 50 million somewhere, hopefully Keith will produce something later giving these sort of details.

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Paul

The debt recorded as due to Vincent Tan and his "associated undertakings" as at 31 May 2017 was £115.1m. Since that date he has converted £12.7m (June 2017) and £66.4m (May 2018) from a debt due to him into shares , a total of £79.1m.

Taken in isolation , the above conversions would reduce the debt due down to £36m. However, this would not take into account further loans he may have made (and he must have to fund the club`s promotion season) to the club since 31 May 2017.

Going into the current season someone must also be financing the costs of new players, new contracts for current players and general club running costs as the first tranche of the Premier League t.v revenues are not received until the end of July.

Strange to say but 50mill sounds like a fair level a debt for a premiership club in this day and age

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Originally Posted by Since62

Paul

The debt recorded as due to Vincent Tan and his "associated undertakings" as at 31 May 2017 was £115.1m. Since that date he has converted £12.7m (June 2017) and £66.4m (May 2018) from a debt due to him into shares , a total of £79.1m.

Taken in isolation , the above conversions would reduce the debt due down to £36m. However, this would not take into account further loans he may have made (and he must have to fund the club`s promotion season) to the club since 31 May 2017.

Going into the current season someone must also be financing the costs of new players, new contracts for current players and general club running costs as the first tranche of the Premier League t.v revenues are not received until the end of July.

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Thanks for that. Moving in the right direction

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Originally Posted by Since62

Paul

The debt recorded as due to Vincent Tan and his "associated undertakings" as at 31 May 2017 was £115.1m. Since that date he has converted £12.7m (June 2017) and £66.4m (May 2018) from a debt due to him into shares , a total of £79.1m.

Taken in isolation , the above conversions would reduce the debt due down to £36m. However, this would not take into account further loans he may have made (and he must have to fund the club`s promotion season) to the club since 31 May 2017.

Going into the current season someone must also be financing the costs of new players, new contracts for current players and general club running costs as the first tranche of the Premier League t.v revenues are not received until the end of July.

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Thanks Keith :thumbup:.

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Originally Posted by Since62

Paul

The debt recorded as due to Vincent Tan and his "associated undertakings" as at 31 May 2017 was £115.1m. Since that date he has converted £12.7m (June 2017) and £66.4m (May 2018) from a debt due to him into shares , a total of £79.1m.

Taken in isolation , the above conversions would reduce the debt due down to £36m. However, this would not take into account further loans he may have made (and he must have to fund the club`s promotion season) to the club since 31 May 2017.

Going into the current season someone must also be financing the costs of new players, new contracts for current players and general club running costs as the first tranche of the Premier League t.v revenues are not received until the end of July.

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Thanks Keith, most informative. Interesting to note that the significant (for us) transfer fees paid out for Reid, Murphy, Cunningham and Smithies will have been funded by, I assume, VT in advance of the Premier League monies.

Some of the anti Tan brigade on here will be disappointed to hear the good news about the debt to equity conversion. Well done to the owner.

I have lost track of the debt numbers.

Can anyone (Keith?) tell me how much debt Vincent Tan has written off in addition to the debt conversion to equity. As others have said the combined figure must be up around £100m.

And no interest charges on his loans to the club?

I am no fan of billionaire businessmen, but Vincent Tan has come good on almost all of his pledges and put the club in a very good position. Thanks VT.

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Originally Posted by Vindec

Some of the anti Tan brigade on here will be disappointed to hear the good news about the debt to equity conversion. Well done to the owner.

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I dont think thats fair. People dont trust Tan for a reason(s). Tbh Im one of them. I fully acknowledge he is repairing a lot of the damage he himself caused but to suggest fans dont like him just for the sake of it and dont want him to redeem himself seems silly to me.

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Originally Posted by jon1959

I have lost track of the debt numbers.

Can anyone (Keith?) tell me how much debt Vincent Tan has written off in addition to the debt conversion to equity. As others have said the combined figure must be up around £100m.

And no interest charges on his loans to the club?

I am no fan of billionaire businessmen, but Vincent Tan has come good on almost all of his pledges and put the club in a very good position. Thanks VT.

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Wash your mouth out son. We aren't allowed to state facts regarding the emperor on here

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Originally Posted by El Gwapo

I dont think thats fair. People dont trust Tan for a reason(s). Tbh Im one of them. I fully acknowledge he is repairing a lot of the damage he himself caused but to suggest fans dont like him just for the sake of it and dont want him to redeem himself seems silly to me.

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It is most certainly fair and not at all silly. Tan has made one mistake albeit a large one but he has reversed his decision. He has now virtually fulfilled all his promises made to the club and has continued to plough money in unlike many foreign owners. There is a tranche of supporters who continually criticise Tan. A couple are mentioned on another thread on here.

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Originally Posted by Vindec

It is most certainly fair and not at all silly. Tan has made one mistake albeit a large one but he has reversed his decision. He has now virtually fulfilled all his promises made to the club and has continued to plough money in unlike many foreign owners. There is a tranche of supporters who continually criticise Tan. A couple are mentioned on another thread on here.

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Agree to disagree then. I think he made a lot more than one mistake. He hasnt fulfilled all his promises either but he is certainly making things up slowly. My point is different though; I don't think those who still don't trust him find themselves in that position with any intention or satisfaction. Its just that some of us take longer to forgive than others but everyone is different.

I went to school with Keith