| Share capital and equity financing of ITFC 14:11 - Apr 23 with 590 views | istanblue |
According to Ipswich Town PLC ''Gamechanger has indicated that it is probable that further cash injections will be made by increasing the share capital of ITFC''.
My understanding of this means that Gamechanger will be issuing more shares in ITFC to finance the club. Who will be buying these shares? Another US company? What does this mean for the ownership of ITFC? |  | | |  |
| Share capital and equity financing of ITFC on 14:12 - Apr 23 with 572 views | noggin |
I'll have a few at 35p each. |  |
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| Share capital and equity financing of ITFC on 14:21 - Apr 23 with 518 views | ericclacton |
How should i know.
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| Share capital and equity financing of ITFC on 14:24 - Apr 23 with 503 views | ArnoldMoorhen |
An owner can get money into a club either through Loans or by issuing shares. So they *could* go to a bank, and bring money in from outside in the form of a loan. Or they *could* issue shares and sell them to others. Issuing shares dilutes the shareholding of all the other shareholders.
Or they can make what is usually called a Directors Loan themselves. Putting money into the Club, but as a debt which the Club has to pay interest on at the market rate, and is liable to repay. This is how Marcus Evans invested a lot of his money into the club, on an annual basis, subsequent to buying it.
Or they could issue the shares, make them available to all other shareholders, and buy the shares, with all proceeds going into the Clubs Bank Account, and being recorded as a special line of income in the Club's accounts.
If every shareholder buys in at their current ownership rate then every shareholder has proportionately invested in making the club more valuable (at least in the short-term, but hopefully in the long-term, too).
It is unlikely that that would happen. How likely is Marcus Evans to put more money in, for example?
So the most likely outcome is that they issue the shares, and they buy them. The Club receives a cash injection and they now own a slightly higher percentage of all the shares, and therefore of the club. |  | | |
| Share capital and equity financing of ITFC on 15:10 - Apr 23 with 429 views | Pinewoodblue |
| Share capital and equity financing of ITFC on 14:24 - Apr 23 by ArnoldMoorhen |
An owner can get money into a club either through Loans or by issuing shares. So they *could* go to a bank, and bring money in from outside in the form of a loan. Or they *could* issue shares and sell them to others. Issuing shares dilutes the shareholding of all the other shareholders.
Or they can make what is usually called a Directors Loan themselves. Putting money into the Club, but as a debt which the Club has to pay interest on at the market rate, and is liable to repay. This is how Marcus Evans invested a lot of his money into the club, on an annual basis, subsequent to buying it.
Or they could issue the shares, make them available to all other shareholders, and buy the shares, with all proceeds going into the Clubs Bank Account, and being recorded as a special line of income in the Club's accounts.
If every shareholder buys in at their current ownership rate then every shareholder has proportionately invested in making the club more valuable (at least in the short-term, but hopefully in the long-term, too).
It is unlikely that that would happen. How likely is Marcus Evans to put more money in, for example?
So the most likely outcome is that they issue the shares, and they buy them. The Club receives a cash injection and they now own a slightly higher percentage of all the shares, and therefore of the club. |
So if the club looked to raise £10m i by a rights issue Gamechanger would put in £8.75m and ITFC PLC would be invited to put in the balance . If they didn’t the percentage of the club owned by ITFC PLC would be reduced and every time this happened it would be reduced even more.
Something which Marcus Evans was not prepared to do.
Suppose the question is how would Game hanger raise their money, would the three lions, who own Between them 5% , put in their share.....same with Marcus Evans who also owns 5%. |  |
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