And the debt v equity thing is just not important. If there is anyone out there who wants to buy MFC then a write off will be the first thing that happens.
The debt v equity "thing" is of course important to a potential new owner.
What indication do you have that Gibson will write the debt to Group off, either now or at a potential sale?
He has only ever done in 2012 (£50m), 2014 (£5m) and 2016 (£8m), but nothing since then. He has only actually injected £64m in his entire ownership, the rest is loans from Group (intra Group Balance Sheet switches). He hasn't "pumped" it in until he writes the loans off.
Since 2016 he has wasted the promotion opportunity and subsequent Parachute Payments and added £60m to the debt (and that is only up to June 2021).
From an FFP perspective too he could have converted £8m every season for the last 6 seasons.
With £50m less debt and more equity, then the club would be significantly more attractive to a new buyer and less of a basket case.
That is only relevant if he is actually willing to sell and let go.
He thinks he is the only one who can run it, or deserves to run it. He will never voluntarily let go and finally lose the money he has wasted.
IF he is prepared to write it off, then the club would actually have a zero book value, not the -£120m it currently does.
If he is prepared to convert that debt to equity then the club has little to no value, but has no significant external debt either, so a potential buyer would look at potential future revenue and prospect of unlocking it, in determining what they might pay Gibson for his equity.
The question is will Gibson voluntarily give away the £120m people think he has actually already given the club, but hasn't.
