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Palace Take Out an Advance on Future Revenue
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 cb1969  Back in the 'hood 20 May 17 3.47pm |
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Two ways I see this 1) interest rates are low and our owners are possibly very capable of getting a greater return on cash investments than the interest on the loan. 2) loan interest I believe is offset against tax, so in effect it could be in interest free loan. I'm not an accountant but I certainly don't think it is anything for concern. Our owners are a very astute group business wise.
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| ItsCPFCforme 20 May 17 4.14pm |
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Originally posted by bexleydave
Brighton didn't; they did have the money just "lying about". I await an explanation, if there ever is one, but I question the point of billionaire owners if we have to go cap in hand to a bank. Anecdote does not a case make. How do you buy a house? Do you save up every single penny first or do you take out a mortgage? I am not meaning to be flippant, but a business borrowing money is so bloody standard I just don't think there should be any cause for concern. Edited by ItsCPFCforme (20 May 2017 4.20pm)
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| ItsCPFCforme 20 May 17 4.14pm |
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Originally posted by Mapletree
Cash flow and Profit and Loss are different. You run out of cash, even if you are profitable, it's game over. This will be to manage cash flow. ^^ This.
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| Tim Gypsy Hill '64 Stoke sub normal 20 May 17 4.31pm |
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The loan is earmarked for a brown envelope, forwarded to BFS as a "Thank you".
Systematically dragged down by the lawmakers |
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| sa_eagle Just outside Cape Town 20 May 17 5.35pm |
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Originally posted by Y Ddraig Goch
The club have taken out a loan against future guaranteed earnings. I.e. TV money. It's not the first time we have done this. I am sure that there are more financially astute than me that can explain the mechanism properly And there's me thinking it was this very kind of thing that screwed Leeds over. Surely we don't want to be going down that road.
Cynic or realist? It's a fine line! |
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chateauferret  20 May 17 5.40pm |
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The external capital brought in don't pay for 100% of capital investment. It's there to leverage debt, which will be serviced from the increased revenue the investment yields. Bog standard capital financing. Nothing to see here, move on.
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| Brinscall Eagle Brinscall Lancashire/ Villamartin ... 20 May 17 6.05pm |
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Originally posted by chateauferret
The external capital brought in don't pay for 100% of capital investment. It's there to leverage debt, which will be serviced from the increased revenue the investment yields. Bog standard capital financing. Nothing to see here, move on. As long as Nickola Sturgeon is not involved !!!
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| bexleydave Barnehurst 20 May 17 6.41pm |
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Originally posted by ItsCPFCforme
Anecdote does not a case make. How do you buy a house? Do you save up every single penny first or do you take out a mortgage? I am not meaning to be flippant, but a business borrowing money is so bloody standard I just don't think there should be any cause for concern.
Others have made the case that this is probably just to deal with a temporary cash flow issue and I expect they're right. But, however you slice it, if we need to borrow now, unless we increase our income, the next time there's a good chance we'll have to borrow bigger. If we need every red cent to stay in the PL, I'm beginning to think that improvements to the infrastructure are beginning to look like pie in the sky.
Bexley Dave Can you hear the Brighton sing? I can't hear a ******* thing! "The most arrogant, obnoxious bunch of deluded little sun tanned, loafer wearing mummy's boys I've ever had the misfortune of having to listen to" (Burnley forum) |
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Y Ddraig Goch  In The Crowd 20 May 17 6.51pm |
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Originally posted by sa_eagle
And there's me thinking it was this very kind of thing that screwed Leeds over. Surely we don't want to be going down that road. Iirc there's was on gate receipts which weren't guaranteed and at a high interest rate. This is guaranteed income hence the low interest rate
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| palace99 New Mills 20 May 17 8.13pm |
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The Barclays doc is unclear, but if might just be the creation of a credit facility which is guaranteed via the charge on the club. This is quite common. So we have a credit line we can use as and when it is required. Yes Arsenal borrowed money for a new stadium - we are not developing the stadium, in fact the stadium development has stalled. Brighton didn't go into debt only because their owner put in c150m to build the new ground.
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pssguy  20 May 17 9.14pm |
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The club have taken out a loan against future guaranteed earnings Thanks TP
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| martin2412 Living The Dream 20 May 17 9.46pm |
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I'm not 100% that this is fully kosher. If you see the attached snapshot, it has the address asHolmesdale Road, whereas Selhurst Park's address is Whitehorse Lane ???
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