BFC cash injection

I don’t think anyone is saying it’s fine to lose money, but becoming sustainable might not even be possible when stuck in league 1 while trying to keep a successful academy and while renting a 20,000+ seat stadium.

If salaries increase by 4x and but TV money increases 8x that’s an indication the championship is a lot more likely to be a good base for a club to be sustainable than league 1.

 

For some reason it's taken the Hong Kong website a long time to publish the full details of the £3m invested in the Summer but they are now on there. I think the resultant ownership percentages are already public knowledge but the details from the issue are below:-

A huge 150,000,000 shares were issued in BFC Investment Company Limited at (a near worthless) 2p each in return for the £3m cash injection. This doubled the total number of shares to 300,000,000.

Of the new 150 million issued, Neerav took 100,052,562 shares for £2,001,051, JAQ 18,000,000 shares for £360,000 and the Crynes 31,947,438 shares for £638,949.

Neither Chien Lee nor Pacific Media Group took any part in this share issue and the impact of the doubling of the number of shares in circulation thus halves their respective percentage holdings. Neerav's investment takes him from 55.59% to 61.14% and JAQ goes from 10.00% to 11.00%. The Crynes maintained the same percentage at 21.30%. The full current holdings are:-

A Shares

Abhajay Trade and Commerce (Neerav Parekh) 183,433,824 shares which is 61.14% of the company (77.69% of the A shares)

Jamakepe Investments (Julie Anne Quay) 33,000,000 shares which is 11.00% of the company (13.98% of the A shares)

Chien Lee 13,800,000 shares which is now just 4.60% of the company (5.84% of the A shares)

Pacific Media Group 5,871,300 shares which is now just 1.96% of the company (2.49% of the A shares)

B Shares

Oakwell Holdings Limited (Crynes) 63,894,876 shares which is 21.30% of the company

(A reminder that the main distinction between the A shares and B shares is that the holder(s) of over 50% of the A shares appoint up to 4 members of BFC Investment Company's Board, the B shares just 1).

 

Are there any implications for the future of the club regarding the number of shares in a hyperinflation stylee?

Or does it not matter as long as the percentages are the same?

I'm a bit thick, so sorry if it's a daft question.

 

Looking at Neerav’s family business, it’s been going for around 35 years.

What’s the business worth? Can’t seem to find that info.

 

It’s a 2 pronged approach. Not only does it allow money to be put in, but because Lee and Conway haven’t purchased, it massively dilutes their shares making them irrelevant almost.

Ifaik, it makes no difference to anything in regards the share numbers. Just a bit of a pain when typing details up

 

It would cost more to print the shares out than they're worth.

 

Not sure, but the below article proves he has plenty of money.

https://www.business-standard.com/a...-apartments-for-rs-170-cr-124121400397_1.html

someone might know better than me, but is rs 65 crore equal to £650m?

 

65 crore is 650 million rupees which at the current exchange rate is about £6 million. While £6 million is nothing to be sniffed at for an apartment, I'm struggling to think what a £650 million apartment would look like. I'm guessing it would include the moon on a stick in a swimming pool filled with liquid gold.

 

Is it not nearer to 6 mill?

 

Told you someone will know better than I

 

Just to provide an update, a notification of a further cash injection via share issue was made on the Hong Kong Companies website yesterday. As always, the website will take a week or two to make the full details available for viewing and so I don't know how much this latest round was for yet. However, it does seem that the owners have tried to get some cash into the club before the window closes.

I think you can always legitimately question as to whether they know their a from their e in terms of running the club and call out (as I and others do) how they've actually spent the money they've put in but it is fact that they have put significant sums of their own money in.

 

Nice one

 

And yet, as recently as (checks notes), er, 2.5 hours ago, we've had a thread started that accuses them of "lining their own pockets."

I agree with your sentiment.

Criticise them for all sorts of aspects as to their the running of the club, if you wish, but do so recognising that without the investment that they've made since removing Lee and Conway from the Board, we'd have likely been in administration.

 

There has to come a point, and it may already have happened, where they make a firm decision that it's no longer about investment and they just want to make this club as successful as they can, or, they get back what they can and be done. This piecemeal addition of funds is as noble as it is stupid... And it's prolonging misery as it doesn't seem sufficient to get us to break out as genuine title challengers which in turn is eroding into the fan bases sentiment.

There seem no evident attempts to address our cost base, or to push the ceiling they've set at circa £8m subsidy.

We really are in the realm of sh*t or bust.

 

Which is even more frightening given the approx £208k a month coming in from transfers

Again, I get this figure from the "£10m" transfer fees of Mads and Kitching et al. (Actual figures vary from £7m - £12m depending who you listen to). We were told the fees were arranged in installments. I cannot see the terms of those installments being anything beyond 4 years. £10m divided by 48 = £208k. I am ETERNALLY GRATEFUL to the owners for banging money in every year just to keep us going, but I still don't quite get why it has got to this.

We have salaries to pay (as do other L1 clubs)
We have a ground to pay for (in the form of rent, but ...... so do other clubs)
We have business running costs outside salaries (as do others)
We have income from crowds and STs (more than some clubs, less than others)
We have commercial income (more than some clubs, less than others)
We have TV income (as do others)
And we have the golden goose income (in installments) of the Mads and Kitching alumni.

No matter how many times it is explained to me, nor how many times I am directed to the Fans Forum explanation* ............ something still does not sit right with me about this fabled 'installment' money. And yes, I get that I can be a bit hard of thinking at times.

And for the avoidance of doubt, I am not make accusations nor casting aspersions in any direction.

* "stick your fingers in your ear, say nowt, and accept we are skint" (pause for dramatic effect)

 

Didn’t Patrick used to say he was subsidising the Academy for £1million a year?

 

Yeah he dreamt that one day there'd be 11 players all from the academy playing in the first team.

 

Cash injection you say. Must have sold another memorial brick in the wall.

 

I don’t think many on here are doing that per se. It’s quite easy to see that we are being run unsustainably (as many clubs are) my point is why we have built up such a large squad of players where it looks like we have gone for quantity instead of quality. Having said that, ability wise, I believe we have a decent League 1 squad, with our ‘first choice’ players easily good enough. However, This inconsistency and the continuous basic errors displayed, particularly at home and (in recent weeks) away, suggests to me there is a sort of psychological aspect that some of our players can’t overcome. Do we blame the coaching staff for not being able to get into their psyche, or for giving confusing info/instructions on tactics, positions etc? Is it simply bad management? Obviously the buck stops with the Head Coach for results and if the current trend continues he’s likely to be heading for the exit doors. But what then? Who then? A call for sack the board is not the answer and would only serve to make things worse. I can only say patience is required more than ever and let’s see where we are in May. As for not renewing STs aren’t people already saying they’re not doing so because of the Sky TV situation?

 

Cant beat a bit of dark sarcasm.