Bristol City majority shareholder Steve Lansdown has written off £15.3million of debt by converting it into club shares, as has become tradition at this time of year.
A return of allotment of shares notice was posted on Companies House on Thursday for Bristol City Holdings detailing 15,305,640 shares issued for £1 each.
Last year the Guernsey-based billionaire converted £14m of debt into shares on June 2, and he did the same in 2020 through the same method, that time for £71m, while in 2019 it was £10m.
The move could either be seen as a fresh cash injection into City for use in the transfer market or, far more likely, to write off some of the club’s debt after a challenging two years following the financial impact of the pandemic.
Bristol City’s accounts for 2020/21 revealed the Robins debt levels had risen from £72m to £79.1m, although a significant amount of that is to Lansdown’s own Pula Sports.
City are working hard to fall in line with the EFL’s Profit & Sustainability rules for next season having posted losses of £38.4m for the financial year ending 2021 which, as CEO Richard Gould has warned, would see them falling foul of the regulations for next season and therefore in danger of a points deduction.
But the club have significantly reduced their wage bill over the last two transfer windows, and are optimistic they can do the same this summer by moving on some high earners, while the market also brings the prospect of raising transfer revenue, something which has proven difficult over the last two summer windows due to the pandemic.
Last year, Lansdown confessed the club are seeking outside investment and they are understood to be among a host of Championship clubs effectively “up for sale”, although it’s unclear if the family are open to a full sale or want to retain a significant stake.
Lansdown’s personal fortune has reportedly fallen by £128m over the last 12 months, according to the Sunday Times Rich List, with the Bristolian falling 22 places to No146 in the annual rankings of the UK’s wealthiest people. The 69-year-old is still worth £1.237bn through financial services company Hargreaves-Lansdown, founded in Bristol in 1981.
The billionaire has been largely quiet regarding City-related matters over the last nine months with his last public address being an interview with The Times during the Ashton Gate Eight celebrations in February.
As well as the allotment of shares, Bristol City Holdings confirmed on Wednesday that Chief Financial Officer Gavin Marshall has become a director of the holding company. Marshall is already a director of Bristol City, Bristol City Women and Ashton Gate Ltd.
Long-servicing board member Doug Harman also formally stepped down on May 31 and will now serve as an honorary vice-president.
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