Swansea City’s ownership group has been issued loan notes in the form of £6m worth of shares, as part of the club’s conversion of debt into equity.
After issuing a substantial loan to the club in 2020, Jake Silverstein was appointed as a director at Swansea. In the past few years, the American has made several trips to south Wales to tackle various club matters.
As per an agreement in place since Silverstein’s involvement with the club, the loan notes held by Steve Kaplan, Jason Levien, and Silverstein are set to be converted into equity.
The impending conversion, which the Supporters’ Trust confirms they are aware of, is part of the ongoing effort to ensure the club’s financial sustainability. As a result of the agreement, the Trust’s shareholding will be reduced from 16% to 13.1%. However, the club’s debt has been subsequently lowered.
A Supporters’ Trust statement read: “The day-to-day influence of the Trust, and the strong relationships formed with the senior management team within the club, will not be affected by this change.
“In the months since dilution first occurred, we have not seen any decline in our standing amongst, or relationship with, the majority owners or the senior management team at the club.
“We recognise the ongoing efforts to make the club more financially sustainable, but also know that there is more to do in this regard.
“The Trust has been open to investment in the football club but has stated previously that we would like any further investment to be focussed on improving the playing squad or the infrastructure. Creating a more sustainable financial model where outgoings are matched by revenue is vital to do that.
“We continue to discuss financial sustainability with the majority owners and the club’s senior management team and are happy with the level of information that is being shared on both subjects on a regular basis.
“The Government’s recent announcement that it will set up an independent regulator, as well as the ongoing discussions between the Premier League and EFL over rights distribution are important steps forward in the protection of football clubs, especially those in the EFL pyramid.
“We fully back the establishment of this new regulator, and will continue to support it through our involvement with the Football Supporters’ Association (FSA).”
As per the agreement reached between the Supporters’ Trust and the club’s ownership group, the Trust’s shareholding cannot be reduced below 5% unless they choose to sell their stake.
