Owner Evangelos Marinakis' 12 billion show of commitment to Nottingham Forest

Nottingham Forest owner Evangelos Marinakis
-Credit: (Image: Getty)

Nottingham Forest have some 12.2 billion shares in issue after a series of moves by owner Evangelos Marinakis to convert debt to equity.

The Forest owner has made a number of moves in recent years to convert owner funding into equity in the club through penny shares, the most recent being £11m worth of loans being converted to shares in December last year.

Prior to that, the Forest owner had done the same with a £41m debt to equity move during the 2021/22 financial year, with conversions of £12m and £20m happening in the two years prior.

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As a result of the moves made in recent seasons, which have proven to be a sign of commitment in Forest for the long-term by Marinakis, reducing the financial burden on the football club in the process, the amount of shares in issue stand at over 12.2bn, according to a confirmation statement filed with Companies House on July 5.

Converting owner debt into equity is not a new phenomenon in football and is usually motivated by wealthy and generous owners choosing to improve the balance sheet by making such a move, removing a chunk of debt burden and any interest that may be being paid on director loans.

In recent years, as well as Marinakis’ multiple moves to convert some £83m of debt into equity, other owners such as the King Power owners at Leicester City, and Farhad Moshiri at Everton, have made similar moves, as has Manchester City owner Sheikh Mansour, and former Chelsea owner Roman Abramovich in years past.

The conversion of debt to equity doesn’t alleviate any issues around profit and sustainability regulations, but it does allow for owners to not have to add a greater debt burden onto the football club in the face of heavy losses.

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