i have pasted the article out of the guardian this morning, Ranson lent 3.5 million to cardiff city to buy players. believe it ? i couldnt either, now the FA are questioning the sales of players and asking does Cardiff City need permision from our chairman to sell their own players! Ranson refused to speak ..... this is disgusting, the sooner Ranson is out the better, 3.5 million to Cardiff yet we cant afford a loan player?!!!
http://www.guardian.co.uk/football/2011/mar/02/football-league-cardiff-city-mortgage
The Football League is investigating whether a mortgage agreement could prevent Cardiff City selling their players without the prior written consent of Coventry City's owner, Ray Ranson.
According to Cardiff's accounts the mortgage was struck last May with a Cayman Islands-registered company called the Player Finance Fund. The accounts, lodged at Companies House last week, say the club already had an existing £3.5m loan with a company called Sport Asset Capital, which is a hedge fund managed by Ranson.
The accounts of Cardiff's parent company show that when the SAC loan was renegotiated last May, it emerged as a new mortgage charged against the club by the Player Finance Fund. The League wants to know whether this new loan means Cardiff may have signed up to a situation where Ranson's permission would be needed to transfer players. The Player Finance Fund mortgage documents explain how the loan works, saying that the fund has a mortgage over Cardiff's transfer receipts. Setting out the "mortgaged property" the loan agreement states: "All monetary consideration receivable or received by [Cardiff] for the transfer or sale of any professional footballer contracted to and employed by the company from time to time whose respective registrations with the Football League Limited and the Football Association are held by [Cardiff]." So all transfer funds received by Cardiff have been mortgaged.
But the real kicker seems to come later. This is a "negative pledge", setting out what Cardiff may not do according to their responsibilities under the mortgage. This states: "The company shall not without the prior written consent of the Player Finance Fund sell, transfer or otherwise dispose of or part with the charged property or any part thereof or interest therein." Cardiff's lawyer, Alan Whiteley, last night said this does not permit the lender to override transfer activity. "The sole interest is in the proceeds of the sale once a player has been sold," said Whiteley. "The players themselves do not form part of the assets."
Third-party influence over footballers has long been a controversial area and when West Ham United fell foul of related Premier League rules it culminated in Sheffield United receiving £27.5m in compensation after the notorious Carlos Tevez affair. There is no suggestion that Cardiff have fallen foul of the same rules, since the Football League did not adopt Premier League regulations until last August, three months after the mortgage was struck. When Digger contacted the Football League to inform it of the situation, it said: "The Football League is making inquiries in respect to this matter."
Gethin Jenkins, Cardiff's chief executive, said: "We have submitted our accounts in accordance with Football League regulations. Should there be any queries we will happily assist them when required." Ranson declined to comment when contacted yesterday. The Football League's rules on "interests in more than one football club" suggest it could be owed an explanation. These rules state: "Except with the prior written consent of the [Football League] board a person, or any associate of that person, who is interested in a club cannot at the same time be interested in any other football club."
http://www.guardian.co.uk/football/2011/mar/02/football-league-cardiff-city-mortgage
The Football League is investigating whether a mortgage agreement could prevent Cardiff City selling their players without the prior written consent of Coventry City's owner, Ray Ranson.
According to Cardiff's accounts the mortgage was struck last May with a Cayman Islands-registered company called the Player Finance Fund. The accounts, lodged at Companies House last week, say the club already had an existing £3.5m loan with a company called Sport Asset Capital, which is a hedge fund managed by Ranson.
The accounts of Cardiff's parent company show that when the SAC loan was renegotiated last May, it emerged as a new mortgage charged against the club by the Player Finance Fund. The League wants to know whether this new loan means Cardiff may have signed up to a situation where Ranson's permission would be needed to transfer players. The Player Finance Fund mortgage documents explain how the loan works, saying that the fund has a mortgage over Cardiff's transfer receipts. Setting out the "mortgaged property" the loan agreement states: "All monetary consideration receivable or received by [Cardiff] for the transfer or sale of any professional footballer contracted to and employed by the company from time to time whose respective registrations with the Football League Limited and the Football Association are held by [Cardiff]." So all transfer funds received by Cardiff have been mortgaged.
But the real kicker seems to come later. This is a "negative pledge", setting out what Cardiff may not do according to their responsibilities under the mortgage. This states: "The company shall not without the prior written consent of the Player Finance Fund sell, transfer or otherwise dispose of or part with the charged property or any part thereof or interest therein." Cardiff's lawyer, Alan Whiteley, last night said this does not permit the lender to override transfer activity. "The sole interest is in the proceeds of the sale once a player has been sold," said Whiteley. "The players themselves do not form part of the assets."
Third-party influence over footballers has long been a controversial area and when West Ham United fell foul of related Premier League rules it culminated in Sheffield United receiving £27.5m in compensation after the notorious Carlos Tevez affair. There is no suggestion that Cardiff have fallen foul of the same rules, since the Football League did not adopt Premier League regulations until last August, three months after the mortgage was struck. When Digger contacted the Football League to inform it of the situation, it said: "The Football League is making inquiries in respect to this matter."
Gethin Jenkins, Cardiff's chief executive, said: "We have submitted our accounts in accordance with Football League regulations. Should there be any queries we will happily assist them when required." Ranson declined to comment when contacted yesterday. The Football League's rules on "interests in more than one football club" suggest it could be owed an explanation. These rules state: "Except with the prior written consent of the [Football League] board a person, or any associate of that person, who is interested in a club cannot at the same time be interested in any other football club."
