Debt issue? are we gonna be loaded with debt?

[growler]

I can understand the rationale, and although I laughed at the mancs becuase they had zero debt, I never expected us to be be debt free.

 

The way I see it, we would have needed funding for the stadium anyway, and these guys can probably get more than we could have by ourselves.

 

Of courseI would prefer a money bags fan, but being realistic, debt finance is how it was always going to happen.

 

you would hope that commercialisation would drive up our revenue considerably anyway.

 

http://www.telegraph.co.uk/sport/main.jhtm...6/sfnbon106.xml

[fyds]

Secured loans and debt finance is a long way from what happened at United. No new ground and £680m (and climbing) debt.

 

Although large parts of the initial T&H plan are personally liable financing (go back over all the stuff at the time - it'll make sense) No revised project as big as this was ever going to be funded straight from their pockets, but within the mode of traditional debt structures for large corporate capital projects.

 

This is of course also not the first major building or even indeed stadium they've built - nothing to get worked up about at this stage, if at all.

[Rimbeux]

So they're being asked to put up some of their own cash to buy the club after all, bet that wasn't part of the original plan. Not sure how that makes me feel, less debt for the club to service obviously, but maybe a rethink on where the revenue goes, gee Arseanal aint spending all their free cash flow on transfers. Will be a lot more content if and when an f-off huge naming rights deal is in place.

[Red Lecter]

There might be less debt for the club to service directly if G&H paid for everthing out of their own pockets, but then, we'd still be paying very large dividends so that they could repay the debt. We'd also be paying large amounts of interest on profits and would probably have sweet left ofr the team.

 

The refinancing means they can get better rates because it is secured on the new stadium, we'll pay less tax and smaller dividends because they won't be paying daft rates out of their own pockets, and I'm sure the accounts will happily bore us all with why it's not actually as bad as the Mancs.

[Beardsley]

Apparantly, our loan will be 16x the income for 2007

Manures loan is 8x their income for 2007

Arsenals loan is 4x their income for 2007

 

Doesn't look too good, does it?

[CarraLegend]

  P_Neal said:

Apparantly, our loan will be 16x the income for 2007

Manures loan is 8x their income for 2007

Arsenals loan is 4x their income for 2007

 

Doesn't look too good, does it?

 

Doesn't matter, the world is going to end.

[New York Red]

Yes, we will have very significant debt. Both for the purchase of the club and for the stadium. It isn't personal debt to T&G.

[Guest Kaizer]

I really dont like this at all, they sweet talk the club into selling to them one of the reasons being because they will fund the stadium costs themselves then they re-finance and puts the club into huge debts less than 6 months after they bought it.

 

f***in hell.

 

I`m not too impressed with our dealings in the transfer market this summer to be honest and now this on top of it all.

[Bailo]

  New York Red said:

Yes, we will have very significant debt. Both for the purchase of the club and for the stadium. It isn't personal debt to T&G.

Hold on, how can we have the debt for buying ourselves (as a club)?!

 

  Kaizer said:

I`m not too impressed with our dealings in the transfer market this summer to be honest and now this on top of it all.

Christ. Would being top of the league after four games make you feel bett........whoops, we are.

[Guest Kaizer]

  SuperDunce said:

Christ. Would being top of the league after four games make you feel bett........whoops, we are.

 

Its a marathon not a sprint.

[Ronnie Whelan]

  Kaizer said:

f***in hell.

 

I`m not too impressed with our dealings in the transfer market this summer to be honest and now this on top of it all.

 

 

 

[Rimbeux]

  SuperDunce said:

Hold on, how can we have the debt for buying ourselves (as a club)?!

 

 

G&T formed Kop holdings or whatver it's called, borrowed £298m to buy the club and give them some working capital. They then use inter-company loans to have LFC plc owing Kop holdings the £298m and paying the same rate of interest as the bank is charging Kop holdings for the original loan, so effectively holding the debt, but G&T still being personally liable. By refinancing the debt through new loans and going all in with the stadium financing, with new the new loans secured on the stadium, the debt will all be on the club and G&T will no longer be personally liable.

[Coyler]

  Kaizer said:

Its a marathon not a sprint.

By all means, keep saying that. Repetition of that axiom is what carried United to the title last year,

[Tobes Rafa]

  Kaizer said:

I really dont like this at all, they sweet talk the club into selling to them one of the reasons being because they will fund the stadium costs themselves then they re-finance and puts the club into huge debts less than 6 months after they bought it.

 

f***in hell.

 

I`m not too impressed with our dealings in the transfer market this summer to be honest and now this on top of it all.

 

You really are incredibly absurd.

[fyds]

  Kaizer said:

Its a marathon not a sprint.

According to you it seems more like suicide pact.

[Guest Kaizer]

  fyds said:

According to you it seems more like suicide pact.

 

How and why?

 

Another thing, why not discuss the main issue here, that the club suddenly have become responsible for a huge debt.

[Jim Price]

  Kaizer said:

How and why?

 

Another thing, why not discuss the main issue here, that the club suddenly have become responsible for a huge debt.

What's to discuss? How else do you imagine large scale capital expenditure is funded?

[Woodsyla]

  Kaizer said:

How and why?

 

Another thing, why not discuss the main issue here, that the club suddenly have become responsible for a huge debt.

 

The club will have a huge debt and a £300m+ stadium. Who did you think was going to buy it ?

[RP]

  Jim Price said:

What's to discuss? How else do you imagine large scale capital expenditure is funded?

 

 

Magic beans. We should have used the magic beans.

[Spion kop]

I thought the detb was going to be a G&T personal debt or company debt i didn't think it was going to be laid agaisnt the club, do i remember incorrectly articles in which they stated this was the case?

[surf]

  P_Neal said:

Apparantly, our loan will be 16x the income for 2007

Manures loan is 8x their income for 2007

Arsenals loan is 4x their income for 2007

 

Doesn't look too good, does it?

 

- By income i'm guessing you mean profit, as ar annual income (or revenue if you like) is around the 100m mark.

- profit is a highly volatile thing and generally means feck all

- both our income and profit should increase after building the new stadium

 

the gist of it is that those figures mean nothing at all

[IgPig]

  Kaizer said:

How and why?

 

Another thing, why not discuss the main issue here, that the club suddenly have become responsible for a huge debt.

 

You seem to be under the impression that they were going to pay for the stadium personally. That has never been the case.

 

None of this is anything new.

 

Are you wrong about everything?

[Bailo]

  Kaizer said:

Another thing, why not discuss the main issue here, that the club suddenly have become responsible for a huge debt.

You mentioned our poor transfers this season. Not anyone else. Which have carried us to the top of the league so far. not bad for a s**** summers business is it?

[Spion kop]

  Post Kuytal Glow said:

You seem to be under the impression that they were going to pay for the stadium personally. That has never been the case.

 

None of this is anything new.

 

Are you wrong about everything?

well the refinancing is due to the credit crunch, so it's new.

[IgPig]

  Spion kop said:

well the refinancing is due to the credit crunch, so it's new.

 

There's nothing new about the way the stadium is being paid for, is what I meant.