What is Vincent Tan’s thought process?

Vincent Tan is a good businessman there is little doubt anybody could argue with that but thinking over the wiping out of interest of nearly £6m and providing another £50m as interest free got me wondering why has Tan done that, surely he is not doing it for charity or to please maybe the fans after the past weeks events.

Don’t get me wrong it must be a good thing for the football club and that is the crux of the matter but why has he done it, as we all appreciate and as I stated above he is a businessman and good businessmen don’t just give away money, the skeptic in me thinks there must be other reasons behind this latest development.

Vincent Tan got involved in Cardiff City as it was recognised there was money to be made and I don’t think there will be too many who would have had an issue with that when he came in and my own belief is still the same as back then. Tan’s plan all along has been to get all the shares, float the club to then sell up and make money.

This is nothing new by myself, anyone can check back through my posts to see that I have been consistent for a couple of years that he wanted to float the club in the far east.

I am no financial expert and I admit I know very little about share issues but I have thought about a few things since the statement from yesterday and wonder if any of the following are reasons behind what appears to be a generous move.

Hopefully those with more knowledge on such matters could clarify or set me straight.

1. Financial fair play rules – with our income streams and outgoings as they can we continue with the current debt levels to satisfy the financial fair play rules that are coming in to affect?

2. Balancing the books – is there further investment coming in and Tan does not want to be seen to be charging interest on his investment?

3. Why would an owner charge himself interest as he will own 98% of the club once the debt to equity is rubber stamped?

4. If the plan is to sell to Chinese or any other investor then surely it would help the sale if there is less debt?

5. If and when Tan does decide to float on the stock market, if we had a heavy debt or the interest was still payable the value of the shares would be lower, so the healthier the balance sheet then the share price is higher?

As stated above, I am asking these questions as I am genuinely puzzled why any businessman would wipe out so many millions when it was only agreed just over a year ago that he would receive interest on his loans and nobody seems to have kicked a fuss up about the interest being charged.

Hopefully we will be provided with sensible informative replies.