HorsePills
Winger
Christmas since this was posted will no doubt have increased this two or three fold for people buying for kids.
Saw plenty with the new retro tops and jackets on Sunday too. Stuff like that keeps spending ticking over mid season.
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Club loan taken out
- Thread starter DonaldDownTheWing
- Start date
Saw plenty with the new retro tops and jackets on Sunday too. Stuff like that keeps spending ticking over mid season.
HarrogateMackem
Striker
I know as football fans who generally want to think the best about our ownership/ club, and we'll say this is fairly routine in business etc., but is it not at least a little bit worrying that we have an owner who seemingly doesn't have the liquid capital to cover even 6 months in the PL.
Say we are relegated, as many teams are eventually, we will see the debt rise right?
JL1985
Striker
He will easily have the money to cover it but these type of people don't get rich by spending their own money.
HarrogateMackem
Striker
You also don't get rich by paying tons in interest on every payment you make though right?
I'm probably overthinking it though. Just obviously incredibly cautious about this club after what happened last time we were in the PL.
JL1985
Striker
I'm not an expert on this sort of thing but I'm sure GOM will clear things up but I doubt it's anything to be overly concerned about.
Mowgli
Striker
Brentford recently did the same. Spurs have done it
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KathyBatesHammer
Midfield
Were obviously set for financial meltdown and are days away from administration honestly man KLD gets my back up, should have invested in January while the iron was hot.
Grumpy Old Man
Striker
I'm currently heading home with flaky train WiFi and a tiny phone screen. No chance it's going to be any time soon
Er, no?
It's all about cash flow management. These things tend to be draw down facilities, rather than term loans.
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MadMackem10
Winger
Can tell you for a fact KLD will have his money in places that see far better returns than the interest cost of this loan. He’d essentially be losing money to use his own capital
Brian Griffin
Striker
You get all kinds of protections spending other people’s money too
Harder to get your own back than it is to refuse to pay a bank loan should something go wrong with your massive ground extension
Ohnonotagain
Striker
Exactly.
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Grumpy Old Man
Striker
The negative optics also preclude owners charging interest on loans to clubs too. Most people have no idea how little liquid funds billionaires have. Their wealth is concentrated in long-term income generating investments. If KLD has ever had more than £20m in liquid funds, I'd be amazed
When do the PL teams get their distributions from the TV revenues? I'm guessing latter part of May when the campaign is over?
nessen
Striker
They all do it. Most owners don’t touch their own money. All good until it goes wrong on the pitch.
Think it’s spread out over the course of the season
Grumpy Old Man
Striker
It is, although it's front end loaded for promoted clubs.
That makes sense, if the broadcasters are making regular payments to the league.
Then only extra lump would be the merit payment as league position isn't known til the end.
Interesting. So we took out a loan at a time when cash flow was actually quite good.
The likes of musk doesn’t have any capital. He borrows against his Tesla shares, you don’t pay tax on debt so it’s a way around dodging tax.
