Nottingham Forest owner Evangelos Marinakis has demonstrated remarkable financial commitment to the club, evidenced by his substantial conversion of debt to equity.
The club now has 12.2 billion shares in issue, a significant increase resulting from Marinakis’ strategic moves to stabilize Forest’s financial standing. In December 2023, he converted £11 million worth of loans into shares, following a £41 million conversion during the 2021/22 financial year and additional conversions of £12 million and £20 million in the preceding years.
These actions reflect Marinakis’ long-term dedication to Nottingham Forest, aiming to reduce the club’s debt burden and associated interest costs. By converting owner funding into equity, Marinakis has alleviated financial pressures, enhancing the club’s fiscal health and sustainability.
This approach, while not unique to Forest, mirrors strategies employed by other prominent football club owners, including Leicester City’s King Power, Everton’s Farhad Moshiri, Manchester City’s Sheikh Mansour, and former Chelsea owner Roman Abramovich.
The conversion of debt to equity is a common practice among wealthy football club owners who seek to bolster their club’s financial stability. This method improves the balance sheet by eliminating significant debt and interest payments, although it does not directly address profit and sustainability regulations. Instead, it ensures the club can avoid accumulating further debt amid financial losses.
Under Marinakis’ ownership, Nottingham Forest has experienced a period of financial restructuring aimed at securing the club’s future.
His commitment has been evident through these substantial financial maneuvers, which have positioned Forest on a more stable financial footing, paving the way for future growth and success.
