Klaus wrote:
Clrnc wrote:
I believe SwissRamble cleared that up. That benefits him more than us.
Yep, he hardly did us a favour out of the goodness of his heart. He got the debt cheap and the club just owes him money now. Which is the situation we wanted to avoid when we went to the banks in the first place, but David Dein had other plans and saddled us with both Kroenke and Usmanov.
However it was ultimately PHW who put things together to bring KSE in, and then to give him the means to take over the club whilst freezing out Red & White at the same time. In doing so he also changed our business rules to ensure Red & White would not get a seat on the BoD or have any say in how the club was run despite achieving 30% share holding.
On the face of it PHW preferred KSE because they bought in on the status quo with the self funding financial model, whereas Red & White wanted to change that to have greater accountability from the BoD, not just in terms of direct investment into the club but also in regards to improved and increased commercial deals. A key point of failure for Red & White was they wanted to allow dividend payments on share holdings, the lack of which PHW used as a reason as to why the shareholders did not directly invest into the club despite them all being millionaires in their own right = no money in or out.
As for the current loan by KSE it improves our cash flow by freeing up the required reserve holdings, and whilst it may be at a better interest rate than available from the banks I have seen reports the loan has the effect of actually increasing and extending our total debt.
