Reason The Swans keep issuing new shares

[Darran]

The reasons behind Swansea City's issuing of new shares

We spoke to football finance expert Kieran Maguire to get a grip on the reasons behind the club's decision to continue issuing new shares

www.walesonline.co.uk

 

[PSumbler]

Just seen this thread on it - what an absolute shite article.
Basically they've been told to make this positive spin but the fact is we are losing massive money and "expert" Maguire (who knows his onions but comes at everything from a point of view of "everyone does it") says there is nothing to be concerned about

And it's pretty clear that the author of that article doesnt understand the difference between a financial year and a calendar year

 

[LeonWasTheDogs]

Just seen this thread on it - what an absolute shite article.
Basically they've been told to make this positive spin but the fact is we are losing massive money and "expert" Maguire (who knows his onions but comes at everything from a point of view of "everyone does it") says there is nothing to be concerned about

And it's pretty clear that the author of that article doesnt understand the difference between a financial year and a calendar year

I’m not sure the article is that wrong. To me, the share issues look just as Maguire says: owner financing to cover the debts. Far better that than borrowing and risking the debts being called in. Maybe I’m miles off, but I can’t see what else it would be. We’re certainly not going on a spending spree, as I don’t thing we’ve got much headroom left in FFP have we?

 

[monmouth]

I’m not sure the article is that wrong. To me, the share issues look just as Maguire says: owner financing to cover the debts. Far better that than borrowing and risking the debts being called in. Maybe I’m miles off, but I can’t see what else it would be. We’re certainly not going on a spending spree, as I don’t thing we’ve got much headroom left in FFP have we?

I suspect Phil means that whatever form the capital is introduced, we are in an increasing financial hole, and the complacency of the article and the 'everyone does it' mantra, is not a helpful "analysis". We have seen this film before and it doesn't end well.

 

[PSumbler]

I suspect Phil means that whatever form the capital is introduced, we are in an increasing financial hole, and the complacency of the article and the 'everyone does it' mantra, is not a helpful "analysis". We have seen this film before and it doesn't end well.

That's it for me. There is too much of a view of "everyone does it" which starts with our very group that is set up to monitor this governance. To such a level that the club don't even bother telling us its happened these days, they just use the Trust as their mouthpiece to do it with a "nothing to see here"

The sheer fact we have had to do it so often this calendar year (is that 5 or 6 times now) should be ringing multiple alarm bells at the financial hole that has been placed in the middle of the club. The fact that other clubs do it has never bothered us before and it shouldn't be seen as a comfort blanket now. We have a financial hole every single month and - let's be honest here - we don't have a hugely improved club to show for it.

This kind of article is typical of our local press who, let's remember, pretty all welcomed Tony Petty with open arms as well... that is not giving a comparison between Petty and this lot but their (press) desire to look too far into these things is legendary

EDIT: To LWTB comments - you are right it is better to issue shares than pile on the debt but the alarm bells for me are more about the fact that we need to do so anyway and comes back to that point of I cannot see how the club has improved to the level of this haemorrhaging of money

 

[LeonWasTheDogs]

That's it for me. There is too much of a view of "everyone does it" which starts with our very group that is set up to monitor this governance. To such a level that the club don't even bother telling us its happened these days, they just use the Trust as their mouthpiece to do it with a "nothing to see here"

The sheer fact we have had to do it so often this calendar year (is that 5 or 6 times now) should be ringing multiple alarm bells at the financial hole that has been placed in the middle of the club. The fact that other clubs do it has never bothered us before and it shouldn't be seen as a comfort blanket now. We have a financial hole every single month and - let's be honest here - we don't have a hugely improved club to show for it.

This kind of article is typical of our local press who, let's remember, pretty all welcomed Tony Petty with open arms as well... that is not giving a comparison between Petty and this lot but their (press) desire to look too far into these things is legendary

EDIT: To LWTB comments - you are right it is better to issue shares than pile on the debt but the alarm bells for me are more about the fact that we need to do so anyway and comes back to that point of I cannot see how the club has improved to the level of this haemorrhaging of money

Ah, yes I’m with you now. It becomes an issue when they look to sell. If they’re looking to recoup their losses, it makes us far less attractive to sell on. If they’re happy to absorb the debt, then fine. We’ve no idea how that will go though and yes, we’re certainly not sustainable. Not exactly next level stuff.