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Significant investment by FPP has been made

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sksk3021 said:
We have to because we won’t have the parachute money next year so if we don’t get promoted would have to dramatically cut wages. It’s a similar situation as it stands with this money.
Strange in the sense I don’t understand the point of it. If it’s for investment in scouting and youth those things take a long time to see the benefits. They also increase the running costs which leaves us vulnerable if they don’t invest further.
Hopefully they spend the money well and it improves the club, but as it stands it’s just a cash flow improvement for the current owners as far as I can tell.
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I think investing in long term things is sensible. If they are thinking about buying the club in the future they want to make sure it is able to get to the top flight and stay there. Having a good academy and recruitment system will be a vital part of doing so in a manner which enables them to make a profit, so it makes sense to invest in it now. Again it's risk free, if they decide to buy us later on they've already put some of the ground work in (rather than having to do it in a few years time and wait a few more years for results from it), if not it's a loan so they get their money back. It's a no lose scenario for them. Had they invested by buying shares they might have found that we still didn't get it right and the club lost value, effectively losing them money. This is just an easy, risk free way of seeing how things go. It's the only thing that makes sense, these blokes won't suddenly have just decided to act like a bank for the crack, it's not what they do and the interest they'd get would be relative buttons to them, it's obviously been made with an eye to being further involved later (especially when it's well known that they've been looking to invest in a European football side, and when they've set a holding company up and been over for a match)
 

Guinness Guzzler said:
I think investing in long term things is sensible. If they are thinking about buying the club in the future they want to make sure it is able to get to the top flight and stay there. Having a good academy and recruitment system will be a vital part of doing so in a manner which enables them to make a profit, so it makes sense to invest in it now. Again it's risk free, if they decide to buy us later on they've already put some of the ground work in (rather than having to do it in a few years time and wait a few more years for results from it), if not it's a loan so they get their money back. It's a no lose scenario for them. Had they invested by buying shares they might have found that we still didn't get it right and the club lost value, effectively losing them money. This is just an easy, risk free way of seeing how things go. It's the only thing that makes sense, these blokes won't suddenly have just decided to act like a bank for the crack, it's not what they do and the interest they'd get would be relative buttons to them, it's obviously been made with an eye to being further involved later (especially when it's well known that they've been looking to invest in a European football side, and when they've set a holding company up and been over for a match)
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I can see what’s in it for them, if it doesn’t work they can walk away no problem. Where does that leave us?
I think it’s sensible to invest for the long term as well, but as it stands this is one off funding (as far as we know).
I don’t think it’s a bad thing but I’d be interested to know the details of the deal and the future plans. It seems it’s been a fairly big step back from what was being talked about previously which concerns me a bit.
 
sksk3021 said:
I can see what’s in it for them, if it doesn’t work they can walk away no problem. Where does that leave us?
I think it’s sensible to invest for the long term as well, but as it stands this is one off funding (as far as we know).
I don’t think it’s a bad thing but I’d be interested to know the details of the deal and the future plans. It seems it’s been a fairly big step back from what was being talked about previously which concerns me a bit.
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I read it differently,GOM has pointed out that the way this has been done has increased our income hence will enable us to sign a couple in jan.Also why do people think these lads are happily dishing millions out to do up our sol ,if they wernt interested in taking over down the line.
 
stevo said:
I read it differently,GOM has pointed out that the way this has been done has increased our income hence will enable us to sign a couple in jan.Also why do people think these lads are happily dishing millions out to do up our sol ,if they wernt interested in taking over down the line.
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Who knows but I think this is what’s happening too.
 
stevo said:
I read it differently,GOM has pointed out that the way this has been done has increased our income hence will enable us to sign a couple in jan.Also why do people think these lads are happily dishing millions out to do up our sol ,if they wernt interested in taking over down the line.
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It increases our income but only as a one off. It’s similar to the way the parachute payments increase our income.
They are only loaning the money to do out the sol, why would they do that just to take over further down the line? They might, they might not the truth is none of us have a clue.
 
stevo said:
I read it differently,GOM has pointed out that the way this has been done has increased our income hence will enable us to sign a couple in jan.Also why do people think these lads are happily dishing millions out to do up our sol ,if they wernt interested in taking over down the line.
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If they took over a percentage of the club for an amount of money, it means that they would presumably profit from a future sale or, if the club goes bust, they get treated as preferential creditors, and get their money back regardless. It's a no lose situation, assuming the deal has been recorded correctly.
 
BumbleBee said:
I posted owa the road - it's a loan with strings attached. What those strings are we can only guess.
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will have to be disclosed if thereare strings...but the strings will apply only to madrox..not to safc..as safc hasnt taken the loan out..
the money has gone into safc as equity from madrox..
 
sksk3021 said:
It increases our income but only as a one off. It’s similar to the way the parachute payments increase our income.
They are only loaning the money to do out the sol, why would they do that just to take over further down the line? They might, they might not the truth is none of us have a clue.
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As you say, we don’t have a clue as we’re not party to the deal. But, why not consider it as it appears...... these fellas would have no interest in making a small loan to SD....so, engage with it.... this is part of a strategy for the longer term!
 
sad-eyed prophet said:
As you say, we don’t have a clue as we’re not party to the deal. But, why not consider it as it appears...... these fellas would have no interest in making a small loan to SD....so, engage with it.... this is part of a strategy for the longer term!
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I’m not really sure what you mean by as it appears? I am considering as it is, a loan, you say they would have no interest in making a small loan and yet that’s exactly what they have done.
It might be a strategy for the long term and it might not, we really don’t know.
 
Whether this latest investment has a positive affect on the club remains to be seen but watching Bob Murray who attended 1 game last season give a short interview on Look North his sadness at our demise was all to plain to see. To say that his ambition was to have a stadium and a team in the top 20 in the world and currently have a club that's outside the top 50 in England is an underachievement which is just off the scale. The prospects of recovering enough ground to be in the top 20 in England in my lifetime would do me but seems like a distant prospect at best with the current regime.
 
We clearly need funding for player acquisition now, the quality in the squad is poor especially at the back. £10m to invest in staff we shouldn't have got rid of in the first place, disappointing
 
sksk3021 said:
I’m not really sure what you mean by as it appears? I am considering as it is, a loan, you say they would have no interest in making a small loan and yet that’s exactly what they have done.
It might be a strategy for the long term and it might not, we really don’t know.
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Not sure what you see here either ,as there is no loans levied against safc .So unless you think these are loonies that like stotties so much thought they would just chuck us 10 mil
 
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