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, May 29, 15:53:46