It could ultimately just be 'house-keeping' but Bristol City supporters should applaud Steve Lansdown, according to financial expert Kieran Maguire.
The City owner has just written off £70m of loans lent by himself to the club, with an allotment of shares meaning that the debts have been exchanged for 'equity'.
Brighton fan Maguire explains that the news is good for the long term of the club and gave his reaction, saying that it's highly likely that Lansdown is effectively writing off £70m.
The news comes following City recently announcing their 2018/19 accounts and a first profit under Steve Lansdown's stewardship of Bristol City.
"I think it makes sense from a practical point of view because the club was going to struggle to repay the money," explained Maguire.
"But it's also a sign of his ongoing commitment by Steve to Bristol City because he isn't interested in getting his money back and he just wants the company and the club to look a lot better with having no debt on the balance sheet, than having £70m debt.
"Whilst this is to a certain extent a house-keeping exercise, broadly it is good news for the club.
"If the club's circumstances change at a future date then he wouldn't be in a position to then charge interest on the £70m debt - not that I ever think he had the intention of doing so - because those debts have been converted into shares.
"All in all, it's a positive sign of his commitment to the club he clearly loves. And I think Bristol City fans should be delighted with what's happened," he explained.
The original £70m debt was owed to the Robins' parent company but has now been converted into 71,352,347 shares to the nominal value of £1.
Companies House have posted a statement of capital following an allotment of shares from the Robins today.
While commercial revenues at the club are good and City have announced a profit in their last accounts, the future does not look too rosy for second tier clubs, with player sales vital for remaining sustainable.
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