Club loan taken out

[KittenMittens]

Grim

I understand why you might think this, but this isn't the bad type of loan, and I hope you would trust I would say if I thought it was.

Man City have a revolving credit facility with HSBC for this exact reason - access to ready cash. Allows the club to operate with minimal cash to hand, and make decisions without having to allocate funding ahead of time. For example, the club may well think the success of the first few months might warrant a bigger lump sum of spending on players, or marketing, or various other things that cost lots of money. This kind of facility means they just work out the maths and spend what they think is right. The other way means they'd have to try to budget monthly to 'save up' to spend it - if they even could, given the way PL payments are made.

All entirely normal and nothing to worry about, especially with these owners. My opposition to stuff like this in the past was because we had owners who were manipulating it to fill a financial black hole for themselves, not the club.

 

[Wendall Gee]

Err Sir Barry Bannan

No doubt at all.

 

[PTR]

Cash flow managment. Basically getting the PL money in earlier than it's actually paid to us. I'd interpret this as us being willing to push on a bit more in the January window.

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

 

[Jimmy Sprouts]

Just a cash flow thing

 

[Wearside Wanderer II]

Probably cost one untested Trai Hume to get it in our hands early.

If the owners think it’s the right thing then I’m onboard with it

 

[unfairadvantage]

Interesting if we're looking at spending in January. Not entirely sure what positions we need strengthening right now.

Keeper and defence

 

[DPTT]

Yeah but for what though - are we cash strapped ATM or are we intending to spend big in January? I dont know but the first one isn't good news but the second one is good news.

I very much doubt after spending £130m ish in the summer we would allow ourselves to be cash strapped come November. Personally think they have already targeted who they want in January and are planning for that.

 

[houghton cut head]

Cash flow managment. Basically getting the PL money in earlier than it's actually paid to us. I'd interpret this as us being willing to push on a bit more in the January window.

The push for the european place

 

[harryCLSsafc]

I understand why you might think this, but this isn't the bad type of loan, and I hope you would trust I would say if I thought it was.

Man City have a revolving credit facility with HSBC for this exact reason - access to ready cash. Allows the club to operate with minimal cash to hand, and make decisions without having to allocate funding ahead of time. For example, the club may well think the success of the first few months might warrant a bigger lump sum of spending on players, or marketing, or various other things that cost lots of money. This kind of facility means they just work out the maths and spend what they think is right. The other way means they'd have to try to budget monthly to 'save up' to spend it - if they even could, given the way PL payments are made.

All entirely normal and nothing to worry about, especially with these owners. My opposition to stuff like this in the past was because we had owners who were manipulating it to fill a financial black hole for themselves, not the club.

See this is the kind of answer that I'm looking for. Explains everything. Fair enough.

 

[houghton cut head]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

Not a penny as it is the owner's money, not ours

 

[joop]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

It may not be a waste.
If we don’t take the loan and spend rather conservatively in January or, we take the money early and invest further to boost the squad and improve on our potential league placing.
Each position is worth £2.5m so even moving up one league place is likely to more than cover the loan fee.
Obviously there are risks involved if the recruitment doesn’t work out.

This is all just theory though. The loan might not even be for strengthening the squad.

 

[KittenMittens]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

But that is part of the equation. Every promoted team and most other Premier League teams generally has to do something like this, because the PL payments come in a way (at the end of the season) that would mean by the time you get it, it would be useless to help in the season just gone, which particularly hurts newly promoted teams with no existing cash reserves.

This just means we are ensuring we have different methods available to do whatever is necessary, and if that money is used well (which it has been) then there's no issue.

 

[beezer]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

Surely you’re not suggesting we should’ve waited til the PL money is in the bank and spent £150m next summer instead of the one just gone?

 

[Charmless Man]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

Why is it a waste when we otherwise wouldn’t have the cash to use?

Surely you’re not suggesting we should’ve waited til the PL money is in the bank and spent £150m next summer instead of the one just gone?

Type of guy who thinks putting all your spare cash in premium bonds is sensible.

 

[The Shepherd]

Monorails don't come for free..!

 

[fyl2u]

If you're a genuine fan of SAFC, what on earth is the point in this type of response?

He was trying to type his own username and got stuck halfway through.

He forgot how to spell his username.

Ah! Great minds!

 

[Pantomime Mackem]

If you're a genuine fan of SAFC, what on earth is the point in this type of response?

To be fair, it’s nothing to do with how genuine a fan you are. Hocking your future income can be a sign of immediate financial distress. I’m not saying it is here. Let me repeat: I’m not saying it is here.

 

[Town End Farmer Giles]

I imagine this bank don't offer this service foc though.
How much cash are we wasting in order to get our hands on it early?

Cost of financing isn't a waste if we get to sign players we wouldn't have otherwise

 

[Pancho]

To be fair, it’s nothing to do with how genuine a fan you are. Hocking your future income can be a sign of immediate financial distress. I’m not saying it is here. Let me repeat: I’m not saying it is here.

I don't agree.

It was an unnecessarily negative response to a pretty anodyne news story.

I think you may want to read GOM's views.

 

[Town End Farmer Giles]

To be fair, it’s nothing to do with how genuine a fan you are. Hocking your future income can be a sign of immediate financial distress. I’m not saying it is here. Let me repeat: I’m not saying it is here.

If it was future season ticket proceeds it would be a bad sign. If its short term financing against guaranteed EPL income after the end of the season I dont see an issue