So, Mr. Bond. What does this mean in layman's terms...? The AI defo of layman's terms is: "Layman's terms" means using simple, everyday language to explain a complex topic so that someone without specialized knowledge or experience can understand it. It involves avoiding technical jargon, rare words, and professional slang in favor of clear, plain language that is accessible to the general public.
Very positive and something I've called for for a while if he's serious and has our long term health at heart.
So instead of us owing Acun £14.5 million that he originally loaned us, he's formally invested it in the club and written it off the debt?
It’s fair play to Acun for doing it this way rather than applying more into the club via a loan. Gut instinct feels like he may have been “forced” by any EFL business plan that’s been put in place but he still didn’t have to do it so far play
Yep, essentially means he's written off a chunk of debt. I thought it might have been a cash injection but I guess not.
It can be when a company is struggling with cash flow by taking the debt off the books and make the balance sheet look a lot healthier .
As far as i can tell, this is the only way to skirt round the 35m funding cap without getting in the **** (assuming I'm not out of date with my knowledge).
From the club's statement: "By converting a portion of the outstanding loan into equity, the Club has reduced its overall debt levels, improved its balance sheet, and enhanced its financial flexibility to support future on and off-field success."
As Syd said, it's often been held against him that he could convert some debt to equity if he wanted to but until now hasn't. So it has to be a positive that he's now done it. And it's a long time since a City owner put any money in without wanting it back.
Whilst there is no cash inflow, the increased equity holding would certainly make the business a more palatable proposition to potential lenders/investors Peter
They wrote off 20m I believe. https://swissramble.substack.com/p/hull-city-finances-202122 They did it at the point of sale though.
