I listed to the Results Business Podcast yesterday (Esk and Rodger Armstrong). Esk did not speculate on the split of the pie but Andy Bells bridging loan of £40m comes out of this I think, with a small portion going towards working capital/transfer expenditure.
What was most interesting to me was the suggestion that any prospect of commercial funding for the stadium seems to be unlikely and indeed uneconomical now with interest rates and general inflation.
It was suggested that MSP will have to fund the remainder of the stadium through another couple of fundraising tranches and this is how they'll acquire a majority holding, such that Moshiri will only be a minor investor by its completion.
I get the sense of competition rather than co-operation between Moshiri and MSP which is worrying. Two different parts of the club pulling in different directions. That cannot mean harmony at boardroom or any other level, if true.
Haven't heard it myself mate. But that would also be my take.
What's telling to me is the investment has jumped from £100 mill to £130 million. MSP are playing it safe to a degree, in that if we dont go down they can call in their warrants and turn the £130 mill into equity.
Moshiri has a choice now, he can either go back to the market for the extra £200 mill for the stadium, or MSP (presuming they turn their investment into equity) may raise more money and turn another tranche into equity - this will essentially make them majority shareholders.
We hold a lot of external debt as it is - 250 mill odd i think - so another 200 mill to finish the ground, will likely eat up much of the extra revenue of the ground in interest - though if we went with the market route we could restructure that when interest rates settle which might be a while yet but its never easy to play the market.
So in all likelihood, MSP may continue to invest - but the Cavet to that is if we go down - would they call in their warrants at all even on their initial investment.....im not sure.
Internally at the club, id imagine its chaos you have three key stakeholders at the moment - Bill, Moshiri and MSP will have increasing boots on the ground. Those three stakeholders will be looking after their own interests in a Changning dynamic. We also have people in executive positions who have never operated in those roles before - which in never good when you look what is on our to do list in terms of stadium, transfer window, mess of finances and a PL investigation. Be Sep, Oct i think before we see a new full time board and new executive positions.
