yep, there's something not quite right about this

the bond issue in isolation may be a reasonable proposition - but its difficult to really trust the people issuing it (the board).

How have they not managed to safeguard the funding of the academy sufficiently in the last 8 years, despite all the Prem money? And how have they managed to accrue such a poor credit rating that they can't get a relatively modest loan from a bank at reasonable rates? I suppose though that it's easy to default to a bunch of fans than to a bank - so the risk is lower I guess.

And, like you said, on the other hand there is some slightly shady history regarding previous bond and share issues. If we get relegated and are in financial difficulty, who gets repaid first (or at all): the board member with 500k invested, or the fan with 10k invested?

If the owners can't fund the club themselves, and can't get a loan at a reasonable rate, because of their poor credit history, then the financial security of the club is always going to be on a knife edge. Because things like relegation, having a poor transfer window and dwindling ticket sales are constant possibilities and can carry a very real financial burden. They really should be looking to pass the club on to more suitable owners at this point in time.

Posted By: Mecagoenti, Mar 9, 10:10:08