They may issue convertible debt at a preferential rate.

So city borrow money off them attached certain rate. They put covenants in the debt which mean that if certain conditions are met that this debt converts to equity leaving them in control. This would put immediate cash into the club, ensure there is greater ownership if, say, the gclub dont get promoted. The debt may have no interest on it and merely convert at the end of term. I too struggle to see how theyvwont want a pathway to ownership ultimately. But it may take a few years.

Posted By: fal5taff on May 31st 2022 at 15:42:08


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