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Grayson: Not worried about being in relegation zone

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Grumpy Old Man said:
£37m next season and £17m the one after. Those payments, by the way, are part of the security for the SBC loan. I wouldn't be at all surprised to find that that the club are under extreme pressure to ensure that the loan is reduced so that it's always less then the future payments due.



Or reduce costs to normal Championship levels.
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I was going to give you a call. Pleased you dropped in. I don't think I've explained myself very well in previous posts on this thread. As I understand it the parachute payments this year and next are basically keeping us afloat. We are surely hoping to be back in the prem this year or next to get the £100m and another 2 years parachute payments in the event of relegation. If we go down this season we are guaranteed at least 1 year without parachute payments and that would probably finish us?

Grumpy Old Man said:
£37m next season and £17m the one after. Those payments, by the way, are part of the security for the SBC loan. I wouldn't be at all surprised to find that that the club are under extreme pressure to ensure that the loan is reduced so that it's always less then the future payments due.



Or reduce costs to normal Championship levels.
Click to expand...

By the time that happens we may be in League 1. We'll still have a fair few left on big money and unless we shift them (unlikely atm) we won't be breaking even.
 
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BumbleBee said:
I was going to give you a call. Pleased you dropped in. I don't think I've explained myself very well in previous posts on this thread. As I understand it the parachute payments this year and next are basically keeping us afloat. We are surely hoping to be back in the prem this year or next to get the £100m and another 2 years parachute payments in the event of relegation. If we go down this season we are guaranteed at least 1 year without parachute payments and that would probably finish us?



By the time that happens we may be in League 1. We'll still have a fair few left on big money and unless we shift them (unlikely atm) we won't be breaking even.
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Not the case. This year, one down and back up.
 
BumbleBee said:
I was going to give you a call. Pleased you dropped in. I don't think I've explained myself very well in previous posts on this thread. As I understand it the parachute payments this year and next are basically keeping us afloat. We are surely hoping to be back in the prem this year or next to get the £100m and another 2 years parachute payments in the event of relegation. If we go down this season we are guaranteed at least 1 year without parachute payments and that would probably finish us?



By the time that happens we may be in League 1. We'll still have a fair few left on big money and unless we shift them (unlikely atm) we won't be breaking even.
Click to expand...

Any PL money has always been used for operating reasons - that's not going to change. Our problem, as I tried to explain in another thread, is that we simply couldn't afford to shoot for that and fail. The massive problem is the external debt. As I said in the post you responded to, money due from the PL is part of their security. While you can get some understanding of what's in the loan agreement from the charge documents at Companies House, there are no indications of any covenants associated with the loan. It's by no means implausible that there's a condition that the loan, at any time, cannot exceed future monies due (and that means with certainty, not on the assumption that promotion could be achieved). On that basis, given that this year's parachute payments are committed, we could be looking at them insisting on the debt being no more than £54m now, and £17m by the start of next season. Given that Short is unwilling or unable to commit more cash, that could go a long way to explaining the club's behaviour. Even this cautious accountant didn't think that the transfer spend would be as low as it was. I don't see the debt due to Drumaville as an existential threat - the debt due to SBC is. Shooting for promotion and missing could put us in a situation where £70m or so has to be found, and an owner unwilling to provide it. We're caught between a rock and a hard place, and, frankly, at the moment I'm more concerned with having a club to support than what division they happen to be in.
 
'Sometimes, small steps that you build along the way, like the Preston result and performance and bits in this game as well, can ultimately lead to bigger steps in the future.”

Don't know who he's trying to kid. We were awful Saturday. Was a step back from our last home game not a step forward at all
 
Grumpy Old Man said:
Any PL money has always been used for operating reasons - that's not going to change. Our problem, as I tried to explain in another thread, is that we simply couldn't afford to shoot for that and fail. The massive problem is the external debt. As I said in the post you responded to, money due from the PL is part of their security. While you can get some understanding of what's in the loan agreement from the charge documents at Companies House, there are no indications of any covenants associated with the loan. It's by no means implausible that there's a condition that the loan, at any time, cannot exceed future monies due (and that means with certainty, not on the assumption that promotion could be achieved). On that basis, given that this year's parachute payments are committed, we could be looking at them insisting on the debt being no more than £54m now, and £17m by the start of next season. Given that Short is unwilling or unable to commit more cash, that could go a long way to explaining the club's behaviour. Even this cautious accountant didn't think that the transfer spend would be as low as it was. I don't see the debt due to Drumaville as an existential threat - the debt due to SBC is. Shooting for promotion and missing could put us in a situation where £70m or so has to be found, and an owner unwilling to provide it. We're caught between a rock and a hard place, and, frankly, at the moment I'm more concerned with having a club to support than what division they happen to be in.
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Thanks. Some of it is over my head but surely we could have found another £5m for a bit of a push . The budget was far too extreme. Just don't think they get it at all.
 
BumbleBee said:
Thanks. Some of it is over my head but surely we could have found another £5m for a bit of a push . The budget was far too extreme. Just don't think they get it at all.
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I was expecting a spend of around £5m. It may have happened if we could have got Borini or Khazri away for full value now. It's seriously hand to mouth stuff now.
 
Hang on though.

Not defending Grayson here at all - I was never happy with the appointment - but our managers aren't allowed to say we're in a relegation battle so what choice does he have but to be positive?
 
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