Fox in a Box Posted 21 February 2007 Share Posted 21 February 2007 http://www.thebluearmy.co.uk/details.asp?k...212200734321331 Mandaric to inject £4.5m next month Milan Mandaric's takeover of Leicester City will see the tycoon put £4.5million into the club next month and another £4.5m before the end of May next year. That £9m cash injection, revealed in a document lodged with the Stock Exchange, will be used to strengthen the squad and provide the money the club needs to function. It also gives Mandaric a controlling share of the club even before the other shareholders sell up. This is because rather than simply buy out the existing shareholders, Mandaric is asking them to agree to issue more than 19 million new shares which he will buy for a shade over 47 pence each. As there were already more than six million shares held in the club, the new shares will give Mandaric more than 75 per cent of the enlarged number of shares in existence. And being above that 75-per-cent mark means Mandaric can control the board, appoint any directors and pass any resolutions he wants to. When the existing shareholders agree to the deal - and more than 94 per cent have given an "irrevocable undertaking" to do so at an Extraordinary General Meeting on March 9 - several things happen, including: * Mandaric puts in £4.5m next month and gets more than 75 per cent of the enlarged number of shares * He gets an option to buy the existing shareholders out, on a sliding scale depending on when he buys and how successful the club has been (see below) * The existing board stands down, save for Malcolm Stewart-Smith, who represents the stadium's financiers, and Tony Lander. Mandaric joins as executive chairman * Chief executive Tim Davies resigns from the board but is kept on as chief executive officer * Each shareholder gets two season tickets, in "mutually acceptable seats" for as long as Mandaric is the majority owner. The sliding scale of payments for the shareholders' shares means they will get at least 10 pence per share (which will cost Mandaric more than £600,000). If City are promoted by the end of the 2009/10 season, the shareholders get another 40 pence per share. If City stay up for a season, they get another 50 pence per share. In effect, if City are promoted and then avoid relegation, the shareholders will get back their original investment. If City are not promoted by the summer of 2010, the original shareholders will get 10p per share. Mandaric could exercise the option to buy at any time before August 15 2010. In theory, he could insist on buying the shares for 10 pence each on March 10 this year. Or he could wait until City are riding high in the table next season, or wait even longer. If he hasn't bought them up by August 2010, the shareholders can force him to do so. Finance expert Mark Faulknall, a principal at accountancy firm Macintyre Hudson, at Meridian Business Park, said: "The deal makes sense. At least he has a demonstrable track record of having done this once before. The way the deal is structured means the old shareholders still have an interest in the club and will share in any success, just as they shared the burden of bringing the club out of administration. It is a question of not forgetting people who have seen the club through difficult times." * The shareholders must be resigned to not seeing a winning streak this season which could lift City into the play-offs. The long and intricately worded legal document does not appear to cover the possibility of promotion this season. Link to comment Share on other sites More sharing options...
Geo V Posted 21 February 2007 Share Posted 21 February 2007 Cutting through the crap I think that means we can being in as many Bosmans as we like, a couple on loan and the odd £300k signing in the summer. Wooooooooooooooooo!! Money money money!!!!! Link to comment Share on other sites More sharing options...
Fox in a Box Posted 21 February 2007 Author Share Posted 21 February 2007 Cutting through the crap I think that means we can being in as many Bosmans as we like, a couple on loan and the odd £300k signing in the summer. Wooooooooooooooooo!! Money money money!!!!! Making us function means.. they get a decent salary and hopefully, attract a high calibre of player. Link to comment Share on other sites More sharing options...
Jon the Hat Posted 21 February 2007 Share Posted 21 February 2007 Remeber guys, we are carrying a £3m a year operating loss in that £4.5M, so you really only have £1.5M to spend. Link to comment Share on other sites More sharing options...
Geo V Posted 21 February 2007 Share Posted 21 February 2007 Making us function means.. they get a decent salary and hopefully, attract a high calibre of player. My standards as a Leicester fan have dropped mate! It wasnt long ago that we were beating the likes of Liverpool and Man Utd on there own patch, had a team full of either current or ex-Internationals, were able to buy £5m players and win trophies. That has soon subsided to Bosmans and players who arent good enough for my 5-a-side team. Now though we are heading in the right direction where MM will back whoever the boss is to pay decent wages and that will attract some Bosmans or older (or as MM would say, experienced players) into our club. MM doesnt sign many £1m+ players historically and he wont start doing that with us next season. Whatever happens next season we can all rest assured as City fans that it will be better than some of the pile of **** that have amazingly had the pleasure of wearing a City shirt this season. We wont be signing Nugent and Billy Sharp but we may get Todorov and Stefanovic! Older players who will improve us! We just need to somehow get into the premier and then the standards can improve again! Link to comment Share on other sites More sharing options...
Flynny Posted 21 February 2007 Share Posted 21 February 2007 Remeber guys, we are carrying a £3m a year operating loss in that £4.5M, so you really only have £1.5M to spend. Milan's already looking to reduce that, or rather, increase income. He's a business man as well as a footballing man. He's not like Abramovich just chucking money everywhere, he's financially astute. Link to comment Share on other sites More sharing options...
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