Whose money is being spent ?

[wigster]

Sorry if this has been raised or answered before.

Is all the money that has been spent, welcome though it is, on new players been provided by Kevin Nagle et al, or is it the club's money - that puts us in debt ?

Equally the money spent on paying Darren Moore and associates off is presumably no small amount either

I seem to remember Maynard Blue implying that the money recently spent was the club's, not Mr Nagle's but I may have got this wrong

Please could a knowledgeable poster, or Kevin/his associates, let me know where the money is coming from. I don't expect exact details obviously, but we do have a right to know what's happening . Thanks.

[sapphireblue]

Feb 2, 2024 23:27:28 GMT 1 wigster said:

Sorry if this has been raised or answered before.

Is all the money that has been spent, welcome though it is, on new players been provided by Kevin Nagle et al, or is it the club's money - that puts us in debt ?

Equally the money spent on paying Darren Moore and associates off is presumably no small amount either

I seem to remember Maynard Blue implying that the money recently spent was the club's, not Mr Nagle's but I may have got this wrong

Please could a knowledgeable poster, or Kevin/his associates, let me know where the money is coming from. I don't expect exact details obviously, but we do have a right to know what's happening . Thanks.

History should tell you that the money spent is from a multimillionaire until he wants it back.

[twyford]

Feb 2, 2024 23:27:28 GMT 1 wigster said:

Sorry if this has been raised or answered before.

Is all the money that has been spent, welcome though it is, on new players been provided by Kevin Nagle et al, or is it the club's money - that puts us in debt ?

Equally the money spent on paying Darren Moore and associates off is presumably no small amount either

I seem to remember Maynard Blue implying that the money recently spent was the club's, not Mr Nagle's but I may have got this wrong

Please could a knowledgeable poster, or Kevin/his associates, let me know where the money is coming from. I don't expect exact details obviously, but we do have a right to know what's happening . Thanks.

We'll need to see the accounts to see how Nagle is providing the funding. 

If it is by way of equity - the club issues new shares which he buys - then it will be the club's money which is being spent.  If so Nagle would need to sell those shares on to another party to get money back (a company can buy back its own shares but I believe needs to be making profits to do so).

If he is providing loans to the club to fund the expenditure then the club would be liable to repay this - there should be a loan agreement to indicate when it would be repayable and whether or not interest was payable on the loans.  To show the company is solvent such loans are usually shown as long term liabilities and the loan agreement can be restated each year to extend the repayment date.  

Repayment would require the club to be profitable / cash generative or for there to be a 'bigger fool' to introduce more money into the club to cover its loan obligations.

In practice it could well be a combination of the two.  Some owners do subsequently convert their loans into equity to help the balance sheet and its accumulated losses look less awful (and reflect the low likelihood of repayment).  Alternatively, as we're led to believe Hoyle did, they can waive repayment.  The accounts confirming this are still to be published.