Nottingham Forest owner Evangelos Marinakis is anticipated to invest more in the club in the coming years to carry out their long-term objectives.
That is the assessment of finance expert Stefan Borson, who exclusively told Football Insider that the Greek tycoon is likely to continue issuing additional shares to himself rather than placing the club in debt.
The Premier League club has struggled financially in recent seasons, including a points deduction earlier this year for violating profit and sustainability rules (PSR).
Forest were believed to be on the verge of breaking the restrictions again in 2023-24, but some last-ditch deals are expected to keep them under the £105 million cap over the next three years.
Marinakis has undertaken a number of attempts to convert debt to stock in recent years, with a Companies House filing on July 5 disclosing that Forest presently has 12.2 billion shares in issue.
Nottingham Forest need funding after PSR issues.
Borson claimed that the 56-year-old will have to continue adopting this strategy due to the club’s substantial operating deficits.
He told Football Insider: “The most exciting aspect of Nottingham Forest will be the money that the owner continues to invest.
“He will do so mostly by issuing additional shares to himself rather than incurring debt, especially from a PSR standpoint, since you want to keep the interest rate as low as feasible.
“So you’d want to put that money in as equity.
“They’ll need to do that because Forest, like so many other teams, is losing money.
“They probably have some huge intentions for the transfer market this summer, as they always do.
“You can expect to see more equity being put into Forest as we go through the next few years, especially because they are looking to redevelop the City Ground and have got permission from the local council to do so.”
