Quote maurice="maurice"The accounts look much better if these were capitalised, and it would mean new money in doesn't cover existing loans/pg's. If fans could buy shares or get bought them as presents etc the existing shareholding would get diluted unless the incumbants also bought more.
As the shares have no value why would someone pay for existing shares?'"
Agreed re accounts however do they really matter? I don't think the banks would lend to leigh rugby club based on accounts. It would be based on shareholders / owners pg's & other business interests. So the accounts is no excuse for new investors not to take over the club.
Totally agree with fans able to buy shares. As you mentioned fans could get them for birthdays & Christmas etc - a great idea. However they shouldn't get disallusioned that the fans would control the club if loans were capitalised.
Again agreed regarding the value of shares = £0.00
To summarise both our points (correct me if I'm wrong) -
1. we need new investment in the club, but It doesn't matter whether loans are capitalised or not really
2. It's a good idea for fans to be able to buy shares in the club, but the current directors would still be in charge due to their investment (shares & capitalised loans ) to date.