I think it's to do with the fact that there was never any money put in

so debts were cleared via companies which didn't really have any proper grounding, are still not really able to provide any financial backing, but are able to take money out of the club as stakeholders. The 'owners' of Chester basically took over the club, ran up more debts, borrowing on the basis of their 'investment' - without ever investing anything. Although we know that the Glasers are debt-financed, at least it's a public debt-financing! These are all just shadow companies of shadow companies.
So as far as I recall - in Leeds' case Ken Bates bought back the club for nothing, then sold it to these 'mystery owners' and no-one really knows whether any money changed hands, because it probably didn't. Guess the Portsmouth investments were similarly non-existent.
That's my simplistic understanding anyway/

Posted By: camcan, Mar 23, 15:34:35