I can comment on the first.

1) £x million flowed into the club by way of conversion of loans into equity.......conversion of loans to equity doesn't flow money in. It just converts an existing liability into owner's equity. The money has already come in at the time of the loan.

2) The Watling bequest didn't flow money in either. It was, IIRC, a write off of money owed. This would have increased owner's equity (assets would have remained the same and liabilities would have been reduced) and reduced interest payments (assuming the debt was interest bearing). Basically, it increased the value of shares.

3) Share issues would have brought money in.

Interest is probably in the region of 8% (more risky than a mortgage...what do you do with a stand????). Hence we probably do make an operating profit of in the region of £1.5m to £2m which is then wiped out by interest.

Posted By: Johnny Comecardiff on May 29th 2008 at 15:53:46

Message Thread

FAo Johnny Come Lately and EOH - Do I have this right? (NCFC) - Mr Creosote, May 29, 15:37:43
- I suspect (NCFC) - east of hampstead, May 29, 16:28:11
- I can comment on the first. (NCFC) - Johnny Comecardiff, May 29, 15:53:46
  - I expressed myself badly (NCFC) - Mr Creosote, May 29, 15:56:50
    - I don't have the accounts to look at...... (NCFC) - Johnny Comecardiff, May 29, 16:03:38
  - I meant to say..... (NCFC) - Johnny Comecardiff, May 29, 15:55:40
- one thing about the stands (NCFC) - Tony Martin, May 29, 15:52:33
- If the debt was taken on to improve the stadium... (NCFC) - Tony Martin, May 29, 15:50:06
  - I don't actually agree (NCFC) - Mr Creosote, May 29, 16:00:48
    - an asset is classed as (NCFC) - Tony Martin, May 29, 16:07:41
    - The accounting term asset doesn't necessarily tie up with the normal use. (NCFC) - Johnny Comecardiff, May 29, 16:04:39
      - But is it any more of an asset (NCFC) - Mr Creosote, May 29, 16:06:49
        
        Weird stuff accounting...... (NCFC) - Johnny Comecardiff, May 29, 16:09:50
        
        Then there is the matter of the infill (NCFC) - Mr Creosote, May 29, 16:22:31
        
        the benefit of the new stands.. (NCFC) - mr carra, May 29, 16:31:44
        
        Except that in the case of the infill (NCFC) - Mr Creosote, May 29, 16:37:40
        
        the hotel corner is slightly different though (NCFC) - blindasabat, May 29, 16:41:38
        
        wouldn't more use of the buy back scheme cost the club money (NCFC) - blindasabat, May 29, 16:26:34
        
        the BUY BACK only operates (NCFC) - east of hampstead, May 29, 17:37:27
        
        the Buy Back scheme is a SCAM (NCFC) - east of hampstead, May 29, 16:33:28
        
        whereas if a fan buys a ticket in the Aviva infill and not on buy back (NCFC) - blindasabat, May 29, 16:44:51
        
        But (NCFC) - Mr Creosote, May 29, 16:48:14
        
        which i guess is covered by ticket sales and sponsorship (NCFC) - blindasabat, May 29, 16:49:43
        
        That's a biggish "if" (NCFC) - Mr Creosote, May 29, 16:53:15
        
        number 1. they wouldn't be Doncaster's sums (NCFC) - blindasabat, May 29, 20:11:00
        
        dont think you could get much cheaper for a stand with same capacity than 6 million (n/m) (NCFC) - Tony Martin, May 29, 16:09:11
        
        unless we made it out of driftwood that Doncaster had collected from Yarmuff beach (n/m) (NCFC) - blindasabat, May 29, 16:11:53
        
        Well there you are then (NCFC) - Mr Creosote, May 29, 16:11:08
      - What he said! (n/m) (NCFC) - Tony Martin, May 29, 16:05:21

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