Club loan taken out

[CissesUnderpants9]

That would be a bigger fixed term loan for sure. And only when shovels are about to go into the ground.

This isn't going to bite the club in the arse later ?

 

[MiddleAgedMan]

I don’t think so. Just getting the cash in the bank ready to splurge on Jan 1st!

Depends how much the loan is going to cost us whether it's nothing to worry about

 

[safc9450]

Wouldnt this just be to cover the cost of the summer transfer window as i'm sure we get drip fed the tv / prize money throughout the season.

No it all get's distrubuted at end of season due to the league positions .Nice little lump .Let's aim high. HTL

 

[DonaldDownTheWing]

We will certainly need additiional borrowing to fund it though.

Would that be more a case of the club borrow x amount over x period of time?

I assume any loan of that size will need to be secured against something? The stadium itself? Just so I know what to look out for!

 

[Grumpy Old Man]

What happened to our overdraft with Kyril's ma?

That's still there. It's only an overdraft facility, This is more a fixed loan which will be repaid as the PL money comes in.

 

[tenpins]

Quite clever timing this on the back of one of our best results in years.
If @Grumpy Old Man suggest this is standard practice then that’s good enough for me.

 

[No7]

I was only joshing!

I think it’ll be to get Dembele in come January.

This is what I’ve heard as well

 

[herra soul mob]

is it not for the players Xmas neet out ?

 

[Grumpy Old Man]

This isn't going to bite the club in the arse later ?

The Macquarie loan? No, that should unwind itself as the PL money comes in. We get the money now, and pay back Macquarie as the money arrives from the PL.

 

[Steedy M]

The Macquarie loan? No, that should unwind itself as the PL money comes in. We get the money now, and pay back Macquarie as the money arrives from the PL.

Would you have assumed that KLD would have the cash himself or his family to fund the club?

 

[Grumpy Old Man]

Would that be more a case of the club borrow x amount over x period of time?

I assume any loan of that size will need to be secured against something? The stadium itself? Just so I know what to look out for!

Yep. A normal term loan. That one will be to Sunderland Ltd (who own the stadium), not SAFC, and will have a normal fixed and floating charge covering all assets.

 

[DonaldDownTheWing]

Depends how much the loan is going to cost us whether it's nothing to worry about

Last season Liverpool earned £53m for finishing 1st, Southampton earned £2.6m for finishing 20th.

Liverpool also earned £25m for broadcast facility fees, Southampton earned £10m.

A few extra places up the league probably pays for the interest on the loan!

 

[red mackem]

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.

It’s the Amad and Dembele money……

 

[Pancho]

Grim

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

 

[DonaldDownTheWing]

It’s the Amad and Dembele money……

Such a shame that United seem to have pulled their heads out their arses

 

[Grumpy Old Man]

Would you have assumed that KLD would have the cash himself or his family to fund the club?

As liquid cash? No. Most billionaires "only" have around £20m in free cash at any time. Anything else is tied up in income-generating assets. They'd need to cash in some of those to fund large projects personally.

 

[No7]

Would you have assumed that KLD would have the cash himself or his family to fund the club?

Very rich people don’t generally put their own money up. It’s how they stay rich.

 

[BingoBango]

Ah that'll be the Amad money ready for January

 

[Steedy M]

As liquid cash? No. Most billionaires "only" have around £20m in free cash at any time. Anything else is tied up in income-generating assets. They'd need to cash in some of those to fund large projects personally.

Interesting, thanks for the reply marra

 

[chunkyshanhawk53]

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 vicious circle of factoring