The Prince and cash flow

[Maidenhead]

Perfectly normal but may suggest a lack of liquidity on the Prince's part?

 

[Blade for Sale]

Securing a loan against future income is something that every club does. If we know we've got several million coming in several months/years time, it makes business sense to sacrifice a small percentage of it to have some of it now.

 

[BushBlade]

Perfectly normal but may suggest a lack of liquidity on the Prince's part?

I think it was stated in the court case that he’s had liquidity issues. As you say though, perfectly normal for any business.

 

[Maidenhead]

I think it was stated in the court case that he’s had liquidity issues. As you say though, perfectly normal for any business.

Wonder if he needs the cash to pay for his shares?

If so it will be interesting next to see what happens next year when he has to pay for the properties.

 

[Maidenhead]

Securing a loan against future income is something that every club does. If we know we've got several million coming in several months/years time, it makes business sense to sacrifice a small percentage of it to have some of it now.

Depends what you need the cash for.

This sort of loan won't come on the cheap.

 

[Stretch]

The Porktalk servers are about to go into meltdown....

 

[BushBlade]

Wonder if he needs the cash to pay for his shares?

If so it will be interesting next to see what happens next year when he has to pay for the properties.

Possibly or it could be to cover running costs between now and the next tranche of PL payments.

 

[BushBlade]

Depends what you need the cash for.

This sort of loan won't come on the cheap.

How much is the loan for and what sort is it?

 

[Sean Thornton]

Possibly or it could be to cover running costs between now and the next tranche of PL payments.

Plus any peaks and troughs in income and expenditure?

 

[Berkshire Blade]

Loads of clubs are using this method his this company. Weary of the prince but don't think this is a Prince issue.

 

[BushBlade]

Plus any peaks and troughs in income and expenditure?

Yeah, that’s more or less what I meant. We’ve got plenty of wages etc to pay with only a few relatively small paydays to come before the next lot of PL payments. I couldn’t properly access the documents from the Twitter account so I couldn’t see if it was an actual loan of a set amount or just an overdraft facility.

 

[Maidenhead]

Yeah, that’s more or less what I meant. We’ve got plenty of wages etc to pay with only a few relatively small paydays to come before the next lot of PL payments. I couldn’t properly access the documents from the Twitter account so I couldn’t see if it was an actual loan of a set amount or just an overdraft facility.

I've no idea either.

I don't usually deal in idle speculation but due to the timing I decided to make an exception on this occasion.

Just adding a word of caution to all those that think the Prince is the best thing since sliced bread, which he may well be, but for now it's far too early to judge.

 

[DronnieBlade]

Securing a loan against future income is something that every club does. If we know we've got several million coming in several months/years time, it makes business sense to sacrifice a small percentage of it to have some of it now.

It makes more business sense to not !!!

UTB

 

[guancheblade]

Who the heck is "The Sheffield United Football Club"??

 

[Sean Thornton]

I've no idea either.

I don't usually deal in idle speculation but due to the timing I decided to make an exception on this occasion.

Just adding a word of caution to all those that think the Prince is the best thing since sliced bread, which he may well be, but for now it's far too early to judge.

The issue is of course whether any monies will be used to buy the assets. If it’s purely working capital then it’s likely to cover timing differences etc ( no idea how much it is but is it secured on PL monies to November 2020). The FC budgets for 2019/20 are unlikely to show a loss for the year.

So without those answers.......

 

[Maidenhead]

[/QUOTE]

The issue is of course whether any monies will be used to buy the assets. If it’s purely working capital then it’s likely to cover timing differences etc ( no idea how much it is but is it secured on PL monies to November 2020). The FC budgets for 2019/20 are unlikely to show a loss for the year.

So without those answers.......

Exactly.

We no have idea what the cash is needed for.

Like I said I'm indulging in idle speculation but the banker in me is hearing warning bells.

I'm programmed to look at the potential downsides of any deal.

 

[mancunianblade]

Would this not suggest that actually Wilder will have significant funds to work with in the coming transfer windows

 

[Sean Thornton]

Exactly.

We no have idea what the cash is needed for.

Like I said I'm indulging in idle speculation but the banker in me is hearing warning bells.

I'm programmed to look at the potential downsides of any deal.
[/QUOTE]

It’s not new though. The FC did borrow from the Shawbrook Bank and that charge still shows as outstanding although you’d expect that to be settled with the new facility.

All that glisters.....

 

[Nick Jansky]

Football club with huge guaranteed future income stream borrows against it to fund short term outgoings. Yawn.

 

[Maidenhead]

Exactly.

We no have idea what the cash is needed for.

Like I said I'm indulging in idle speculation but the banker in me is hearing warning bells.

I'm programmed to look at the potential downsides of any deal.

It’s not new though. The FC did borrow from the Shawbrook Bank and that charge still shows as outstanding although you’d expect that to be settled with the new facility.

All that glisters.....
[/QUOTE]
True, but the owners were in dispute when that loan was taken out.

I can't recall hearing about any other such borrowings in the past.

I'm not saying that there is a problem, just that there might be.

Idle speculation. I know nothing.

 

[tonytonycurrie]

Wonder if he needs the cash to pay for his shares?

If so it will be interesting next to see what happens next year when he has to pay for the properties.

No problem, already said that if we stay up, Premier league cash will pay. If relagated says hell find a way to pay, whatever that means!!!!!!!!

 

[Sean Thornton]

Wonder if he needs the cash to pay for his shares?

If so it will be interesting next to see what happens next year when he has to pay for the properties.

It’s the FC borrowing the money, not him or his financial set ups. Unlikely the FC would buy BL shares.

 

[BushBlade]

It’s not new though. The FC did borrow from the Shawbrook Bank and that charge still shows as outstanding although you’d expect that to be settled with the new facility.

All that glisters.....

True, but the owners were in dispute when that loan was taken out.

I can't recall hearing about any other such borrowings in the past.

I'm not saying that there is a problem, just that there might be.

Idle speculation. I know nothing.
[/QUOTE]
We wouldn’t have needed it in the past. The whole way our finances are structured has changed significantly. Our TV income was something like a quarter of our total income so we had far less reliance on it to pay the bills. It’s now something like 80% of our income so we’re more susceptible to the timings of its release.
Previously a large proportion of our income (STs, corporate, transfer fees) was ‘up front’. Now it’s not, it’s staged so that will impact on liquidity.

 

[Harry's Game]

All clubs take out loans against future guaranteed income.

none story

 

[tonytonycurrie]

No problem, already said that if we stay up, Premier league cash will pay. If relagated says hell find a way to pay, whatever that means!!!!!!!!

Almost like putting 50 Million quid into your bank account for a rainy day, Criminal. I know. Not many will like this, but it's fact. Watch the video, his own words.

 

[Maidenhead]

Would this not suggest that actually Wilder will have significant funds to work with in the coming transfer windows

no, it indicates that we're already overspending on a current account basis.

That may be due to cash flow timing differences but it certainly doesn't give any indication that the manager will get any additional funds, and in my opinion (and it's only an opinion) it is more likely to indicate the opposite.

 

[BigBed]

Wonder if he needs the cash to pay for his shares?

If so it will be interesting next to see what happens next year when he has to pay for the properties.

And Henderson and Watkins.

 

[Bladesman]

Securing a loan against future income is something that every club does. If we know we've got several million coming in several months/years time, it makes business sense to sacrifice a small percentage of it to have some of it now.

Pretty much what McCabe did with Tevez money if I remember correctly.

Although he gave that money to Bryan Robson.

 

[Maidenhead]

All clubs take out loans against future guaranteed income.

none story

All clubs, that's quite a sweeping statement.

I hope you're right.

 

[bromtom]

no, it indicates that we're already overspending on a current account basis.

That may be due to cash flow timing differences but it certainly doesn't give any indication that the manager will get any additional funds, and in my opinion (and it's only an opinion) it is more likely to indicate the opposite.

Catastrophising.