It’s been a promising couple of weeks when it comes to the accountancy at Cardiff City. A long-standing debt owed to Langston was paid, whilst Vincent Tan turned £68 million from debt into equity this week just past.
After the news, the ever-present debt with Langston – a company which is owned by former club owner, Sam Hammam – was settled out of court with the club agreeing a repayment of £5 million by March 2nd.
Cardiff City: Vincent Tan Halves Club Debt
The Langston news was followed up by a statement from the club website stating that Vincent Tan vows to halve the club’s £140 million debt by converting £68 million into equity and writing off a further £10 million. The statement from the Cardiff City FC club website reads, “Cardiff City Football Club is pleased to announce the following financial information, as confirmed on 11th February 2016 by Tan Sri Vincent Tan.”
During the 2014/15 financial year, Tan Sri Vincent Tan waived £13 million of the debt owed to him by the Club and further converted £3 million of debt into equity in accordance with the Financial Fair Play regulations.
In total, therefore, for the year ended 31st May 2015, £16 million of Club debt was cleared.
The 2014/15 accounts also show that the Club and the Group traded profitably.
For the financial year 2015/16, Tan Sri Vincent Tan will convert an additional £68 million from debt into equity and waive a further £10m of the debt owed to him.
The remaining debt, amounting to approximately £40 million following the above waiver and debt to equity conversion, will be converted from debt into equity over the next five years at the current maximum permitted Financial Fair Play regulated figure of £8 million per year.
The 2014/15 audited Financial Statements will be filed at Companies House on Monday, 15th February 2016.
On behalf of Cardiff City Football Club, Chief Executive Officer, Ken Choo said of the above statement: “We’d like to thank Tan Sri Vincent for his generosity and for visiting us personally to make this significant announcement.
“Cardiff City Football Club can look forward with a renewed level of optimism and financial stability, as a result of his kind gesture.”
Tan also told the BBC that he believes the current squad, after the loan additions of Tom Lawrence and Kenneth Zohore is capable of gaining promotion, ”
“I think the fans should support Russell – he has done his best,” said Tan.
“I want the fans to be more reasonable with him. They should support Russell Slade. He has done a great job in the current situation. He has inherited a squad of 50 players. Some of them had no discipline and he managed to clean it all up.
“I gave Russell a chance based on a recommendation. He was an honest man, based on what the club needed. I was looking for an honest, trustworthy manager.”
Tan also revealed he had been to Cardiff’s training ground to give the players a ‘pep talk’ and told supporters: “I am convinced that with this current group we can get promoted.”
Cardiff City drew 0-0 with Charlton Athletic and now face Brighton and Hove Albion in Saturday’s early kick-off on 20th February.
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