Investment Question

[Red Chilli]

Fair enough, cheers

It was the bit about debt not having a good negative correlation with share price which I didn't appreciate. I thought the correlation would be good.
So if they run up more debt, whilst at the same time producing success on the pitch and success in the club shop, would the share price go up?
I suppose it would.
So if they float the club, sell their shareholding bit by bit, who then owns the debt? The company presumably, and therefore the shareholders?

[Rosco]

Fair enough, cheers

It was the bit about debt not having a good negative correlation with share price which I didn't appreciate. I thought the correlation would be good.
So if they run up more debt, whilst at the same time producing success on the pitch and success in the club shop, would the share price go up?
I suppose it would.
So if they float the club, sell their shareholding bit by bit, who then owns the debt? The company presumably, and therefore the shareholders?

The debt will be the companies as opposed to DIC's.
Like I say it isn't a problem once you can repay it and if you can make a profit that is above the level of interest repayments on the debt well it's a very successful thing for an investor, it's essentially free money.

Can you now see why I'm a bit uncomfortable and unwilling to be as positive as others about his possible takeover ?

We desperately need the new stadium, but since we can't raise the funds without investment this is a necessary evil.

[Red Chilli]

Only the sort of investment which Chavski got would make me completely comfortable, but that was a one off fluke which was never going to happen again. There's still no guarentee that Abramovich won't float the Chavs at some stage, nothing is certain.
So I'm happy that DIC's investment will help us move on as a club, we're stagnating at the moment and this seems to be the only way of moving forward. At least we don't have groundshare and the new stadium can progress with more certainty.
The DIC investment seems the best option to me, who knows what the implications will be.