Aberdeen Debt

[Ozyhibby]

@AfcChat: Stuart Milne is to write off £3.7m of debt & Aberdeen Asset Management is to do similar to £2.25 million. Reducing AFC's debt by £5.75m.

Just seen on twitter. Will make them competitive with us but they still have stadium to build.

[Big_Franck]

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@AfcChat: Stuart Milne is to write off £3.7m of debt & Aberdeen Asset Management is to do similar to £2.25 million. Reducing AFC's debt by £5.75m.

Just seen on twitter. Will make them competitive with us but they still have stadium to build.

Taking the green tinted specs off for a second a strong Aberdeen is good for Scottish Football.

We will probably still be in a stronger position though, and hopefully we will go from strength to strength under Paddy

[LancashireHibby]

Any ideas on how that leaves the total debt? As above, a strong Aberdeen is good for strengthening our position in terms of surviving and prospering in a Hun-free SPL.

[BarneyK]

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@AfcChat: Stuart Milne is to write off £3.7m of debt & Aberdeen Asset Management is to do similar to £2.25 million. Reducing AFC's debt by £5.75m.

Just seen on twitter. Will make them competitive with us but they still have stadium to build.

No matter how I try, I just cannae get my calculator to make 3.7 plus 2.25 = 5.75

[Hibs7]

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@AfcChat: Stuart Milne is to write off £3.7m of debt & Aberdeen Asset Management is to do similar to £2.25 million. Reducing AFC's debt by £5.75m.

Just seen on twitter. Will make them competitive with us but they still have stadium to build.

So what was and still is their debt.

[Bostonhibby]

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No matter how I try, I just cannae get my calculator to make 3.7 plus 2.25 = 5.75

Yamonomics, all adds up perfectly.

[Hibercelona]

Anybody willing to step in and wipe off 6 million of our debt?

Seems we always have to do things the hard way, while other clubs just have money thrown at them.

[#FromTheCapital]

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Anybody willing to step in and wipe off 6 million of our debt?

Seems we always have to do things the hard way, while other clubs just have money thrown at them.

Perhaps we could have a bake sale????

[Ozyhibby]

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So what was and still is their debt.

No idea. I just copied from twitter.

[Ozyhibby]

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Anybody willing to step in and wipe off 6 million of our debt?

Seems we always have to do things the hard way, while other clubs just have money thrown at them.

We have had a fair bit of debt forgiveness over the years from Tom Farmer.

[Hibs On Tour]

Does my nut in when this kinda thing gets misnamed. Its no writing off faacckk all - its merely exchanging one kind of debt for another, albeit it will show differently on a balance sheet I suppose. Its not like they're saying 'see that money you owe us, just keep it for nothing in exchange'. Same kinda of not-joined-up-thinking that the yams swallow week in, week out. All Aberdeen have done by issuing all these extra shares in return is to reduce the loans due while reducing the value of the club by the same amount. And they still have a stadium to build ;)

[LeighLoyal]

Maybe STF could write off the ER £6m... a good junk of it was paying off duff managers.

[Part/Time Supporter]

Cuts their debt from ~£17 million to ~£11 million.

http://www.bbc.co.uk/sport/0/football/20516243

It's probably to do with the fact the new stadium project went tits up at their council a couple of months ago, ie they were hoping to get (some of) their money back from that scheme but it isn't going to happen now.

[Hibercelona]

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Does my nut in when this kinda thing gets misnamed. Its no writing off faacckk all - its merely exchanging one kind of debt for another, albeit it will show differently on a balance sheet I suppose. Its not like they're saying 'see that money you owe us, just keep it for nothing in exchange'. Same kinda of not-joined-up-thinking that the yams swallow week in, week out. All Aberdeen have done by issuing all these extra shares in return is to reduce the loans due while reducing the value of the club by the same amount. And they still have a stadium to build ;)

Are you 100% sure that this is the case here?

Theres absolutely no indication that its a debt for equity swap. Surely it would have pointed out otherwise?

[NYHibby]

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Are you 100% sure that this is the case here?

Theres absolutely no indication that its a debt for equity swap. Surely it would have pointed out otherwise?

From the BBC article:
"The £3.7m due to chairman Stewart Milne and £2.25m owed to Aberdeen Asset Management will be turned into shares, cutting Dons' debt to £10.82m."

[JeMeSouviens]

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Are you 100% sure that this is the case here?

Theres absolutely no indication that its a debt for equity swap. Surely it would have pointed out otherwise?

From the Beeb's article:

Part of that is to be invested in the development costs of a new stadium.

The £3.7m due to chairman Stewart Milne and £2.25m owed to Aberdeen Asset Management will be turned into shares, cutting Dons' debt to £10.82m.

[The_Sauz]

Aberdeen is just another club that is not living within it's means. All they have done is built 1 Stand and bought a new toaster in the last 10 years and yet have £16m of debt? That's a poor amount of debt for a club who have the third biggest support in the country Even if they move the £6m debt, then I imagine that the reaming debt will increase at the end of the season due to them having the second biggest squad in the SPL and not generating large home crowds!

[mca]

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Perhaps we could have a bake sale????

Brilliant idea... with the debt at only £6 million - should be a piece of cake..

[VickMackie]

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Aberdeen is just another club that is not living within it's means. All they have done is built 1 Stand and bought a new toaster in the last 10 years and yet have £16m of debt? That's a poor amount of debt for a club who have the third biggest support in the country Even if they move the £6m debt, then I imagine that the reaming debt will increase at the end of the season due to them having the second biggest squad in the SPL and not generating large home crowds!

Did they not just have 18,000 at the home game vs Celtic for a live TV game? If they're challenging near the top their crowds will increase.

[The_Sauz]

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Did they not just have 18,000 at the home game vs Celtic for a live TV game? If they're challenging near the top their crowds will increase.

They always get big crowds for OF games even if it's on TV their avg this season is 11508
http://www.scotprem.com/content/default.asp?page=home_Statistics

[brog]

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They always get big crowds for OF games even if it's on TV their avg this season is 11508
http://www.scotprem.com/content/default.asp?page=home_Statistics

I'm afraid that's not true. Aberdeen gates are probably most volatile in SPL dependent on their results. Their home average last season was only 9.4k & their 2 home gates vs Celtc averaged under 13k.