Records show structure of Oxford United takeover deal

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tomoufc
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Records show structure of Oxford United takeover deal

Post by tomoufc » Fri Mar 09, 2018 2:38 pm

Or do they? Can anyone explain this in layperson terms?

http://www.oxfordmail.co.uk/sport/oxfor ... over_deal/

Record at Companies House:
https://s3-eu-west-1.amazonaws.com/docu ... o1rOJ1QU%3
&quotI've been a slave to football. It follows you home, it follows you everywhere, and eats into your family life. But every working man misses out on some things because of his job. &quot

OtmoorYellow
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Re: Records show structure of Oxford United takeover deal

Post by OtmoorYellow » Fri Mar 09, 2018 9:33 pm

Daryl Eales owns 10%. Can't remember precise figures, but Tiger must own around 79%.

A legal charge, or debenture, is like mortgage or secured loan. It remains on the company's records until it's terms have been met, which makes it difficult to sell the company without repaying the loan first and very difficult to obtain other secured loan funding. I haven't read the terms because the document is very long and I don't have time, but Eales is effectively lending the club £4.2m.

The Oxford Mail article tells us pretty much nothing new about the share structure of the club, and gets us no further forward. Lazy article with big headline to sell papers.

Let me know your questions for the most part I should be able to answer them.

Your link to the Co. House records doesn't work.

https://s3-eu-west-1.amazonaws.com/docu ... y6uL1QU%3D

Kernow Yellow
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Re: Records show structure of Oxford United takeover deal

Post by Kernow Yellow » Sat Mar 10, 2018 3:11 pm

There is a thread about this over in The Other Place, but it's so full of toxic bile I wouldn't recommend it!

Basically, as I understand it, Tiger has agreed a purchase price with DE for his majority holding in OUFC, but instead of giving him all the money up front he has given him some, with a debenture note against the club for the rest (£4.2m). In order to ensure DE gets his money, certain transfer income (which seems to be payments known to be due from previous player sales) will go straight to DE rather than being available to OUFC to reinvest. I don't think these cover the whole £4.2m though, so Tiger will have to find some more money from somewhere before 2019 for OUFC to pay off the debenture or an interest rate of 10% kicks in.

The argument is that it allows Tiger to invest more money in eg a new manager and players now rather than giving it all to DE, but whether that happens remains to be seen. And it rather begs the question of how much money has he actually got if he can't afford to purchase the club outright?

Also, Tiger is putting the club into debt rather than himself - to fund the purchase of the club! Isn't this basically what the Glazers did at Man Utd which pissed so many of their fans off?

SmileyMan
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Re: Records show structure of Oxford United takeover deal

Post by SmileyMan » Fri Mar 16, 2018 2:13 am

Kernow Yellow wrote:
Sat Mar 10, 2018 3:11 pm
Also, Tiger is putting the club into debt rather than himself - to fund the purchase of the club! Isn't this basically what the Glazers did at Man Utd which pissed so many of their fans off?
Yes, although if you do it with a house it's called a 'mortgage' and I've heard they're quite popular....

Kairdiff Exile
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Re: Records show structure of Oxford United takeover deal

Post by Kairdiff Exile » Fri Mar 16, 2018 9:50 am

SmileyMan wrote:
Fri Mar 16, 2018 2:13 am
Kernow Yellow wrote:
Sat Mar 10, 2018 3:11 pm
Also, Tiger is putting the club into debt rather than himself - to fund the purchase of the club! Isn't this basically what the Glazers did at Man Utd which pissed so many of their fans off?
Yes, although if you do it with a house it's called a 'mortgage' and I've heard they're quite popular....
Not sure that's a sensible / fair comparison, TBH. We all need a roof over our head, and we all want the security offered by owning our own home. We don't all need to buy a football club. I share KY's concern if the club is being saddled with debt when we have bugger all assets and (so far) zero vision for how we'll be able to service that debt in the long-term.

Myles Francis
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Re: Records show structure of Oxford United takeover deal

Post by Myles Francis » Fri Mar 16, 2018 3:03 pm

SmileyMan wrote:
Fri Mar 16, 2018 2:13 am
Kernow Yellow wrote:
Sat Mar 10, 2018 3:11 pm
Also, Tiger is putting the club into debt rather than himself - to fund the purchase of the club! Isn't this basically what the Glazers did at Man Utd which pissed so many of their fans off?
Yes, although if you do it with a house it's called a 'mortgage' and I've heard they're quite popular....
Except it's not. Unless the house ends up owing the bank rather than you...

Kernow Yellow
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Re: Records show structure of Oxford United takeover deal

Post by Kernow Yellow » Fri Mar 16, 2018 4:01 pm

Myles Francis wrote:
Fri Mar 16, 2018 3:03 pm
SmileyMan wrote:
Fri Mar 16, 2018 2:13 am
Kernow Yellow wrote:
Sat Mar 10, 2018 3:11 pm
Also, Tiger is putting the club into debt rather than himself - to fund the purchase of the club! Isn't this basically what the Glazers did at Man Utd which pissed so many of their fans off?
Yes, although if you do it with a house it's called a 'mortgage' and I've heard they're quite popular....
Except it's not. Unless the house ends up owing the bank rather than you...
Exactly. It's one thing for Tiger to incur debts in buying OUFC (although that would be worrying enough given our situation). But to load them straight back on to the club is another thing entirely - a club with no realistic prospect of suddenly becoming profitable to the tune of £4.2m over the next 2 years!

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