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 New Owners Return on Investment
Topic Originator: DA-go Par Adonis  
Date:   Mon 30 Aug 14:31

Not to be a prophet of doom, but I hope there's some sort of clause as to what the new owners can take out in dividends - or an exclusion of some sort.

If Swansea buy Nisbet for £5m, that's between £1m and £1.5m landing in the bank account of club owned by new people who have been here 5 minutes.

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I love it when we go sell Kevin Nisbet,
He's gonna pay for everyone this season.
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 Re: New Owners Return on Investment
Topic Originator: Malcolm Canmore  
Date:   Mon 30 Aug 15:04

I don`t think you need to worry. Dividends can only be paid out of profits. The accounts to 31 May 2020 show an accumulated loss in excess of £8m. That needs to be wiped out before any dividends can be paid. His need to set a Scottish record transfer fee, I guess, for that to happen.

My dog eats meat
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 Re: New Owners Return on Investment
Topic Originator: jake89  
Date:   Mon 30 Aug 15:04

Why would there be? Shareholders are entitled to a dividend. However, I would doubt that our current majority shareholders are expecting to take out more than they've put in.
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 Re: New Owners Return on Investment
Topic Originator: DA-go Par Adonis  
Date:   Mon 30 Aug 15:52

To be fair, I think Malcolm Canmore is right. If we're still carrying forward accumulated losses, I don't think they can declare a dividend even if we make a profit this financial year.

Let's hope they don't think of another mechanism to extract money then.

To be fair, I'm cautiously optimistic about the club's future in the hands of the new guys - I'm just surmising that it wasn't necessarily such a strange time to invest if this windfall transpires.

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I love it when we go sell Kevin Nisbet,
He's gonna pay for everyone this season.
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 Re: New Owners Return on Investment
Topic Originator: Andrew283  
Date:   Mon 30 Aug 16:12

£8M of debt? What the actual f@@k?
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 Re: New Owners Return on Investment
Topic Originator: DA-go Par Adonis  
Date:   Mon 30 Aug 16:19

It's not £8m of debt.

It's £8m of cumulative losses over the years.

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I love it when we go sell Kevin Nisbet,
He's gonna pay for everyone this season.
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 Re: New Owners Return on Investment
Topic Originator: The Roy Barry Fan Club  
Date:   Mon 30 Aug 17:36

Da-go is quite correct.

There is no meaningful debt in the 2020 accounts. The balance sheet is in reasonable shape. With the substantial German cash investment, it will have been strengthened further. The £8 million of cumulative losses in DAFC Ltd were built up in the years prior to 2013 and Administration. The substantial associated debt burden on the company was written off through the Administration process.

Malcom Canmore`s point was a company law one, and is also spot on.

For myself, I would say that there is not the slightest doubt that the German investors are in it for the long term and I don`t think for a second that they would be remotely interested in withdrawing any short term windfall.

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