Ramsdale/Arsenal

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ShorehamRevolution

ShorehamRevolution

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I was listening to the price of football podcast last night and they mentioned arsenal owe 100’s of millions out in unpaid transfer fees. Does anyone know for sure if we’ve received all of ours or is it being paid in instalments which seems to be common these days.
 



Football works on credit & debt this days. No transfer fee is paid in full outright so we’re almost certainly receiving the Ramsdale fee over multiple seasons with added clauses.
 
Yeah it will be in multiple stages.
Sometimes for clubs like ourselves we will take less in total fee if we get more up front etc.

What you find is that clubs will often take out loans to get the fee money before it lands. Obviously you will pay interest on it but means that instead of potentially waiting 2 years you can get that money immediately.
 
The guaranteed portion of the fee was £24m. This was split into 3 instalments of £8m.

We received instalment #1 immediately from Arsenal then, in December 2021, we took out a loan of £16m from Macquarie which was secured against instalments #2 and #3.

#2 was paid in July this year and #3 will be paid in July next year.

I can't find exact details of the repayment but I'd assume that we simply transfer instalments #2 and #3 to Macquarie when we receive them from Arsenal, plus a fixed charge equivalent to something like 7%. (Layman's terms, interest).

This sort of loan is very common and is done to boost cashflow.

We chose to do this because, although we're much healthier overall than we once were, we don't have much cash sat in the bank. This isn't a bad thing per se, but any business needs a certain level of liquidity. This means a pot of cash you can dip into quickly, easily and cheaply if necessary.

The parachute payments were already promised to other clubs/parties and had also already been borrowed against, so going back to Macquarie for an advance on the Ramsdale money was a no-brainer.

For what it's worth, there's a further £6m potentially due from Arsenal. It's dependent on how Ramsdale performs for them, ie it's nothing to do with England caps. I don't know the specifics but the word is that he's on track to meet the targets laid out in the transfer. We haven't borrowed against this £6m as it's not guaranteed, but this also means it would be an additional boost if it happens.
 
I am guessing games played was one as I remember one of the journalists saying it was close to being triggered last year.
 
Panini said:
The guaranteed portion of the fee was £24m. This was split into 3 instalments of £8m.

We received instalment #1 immediately from Arsenal then, in December 2021, we took out a loan of £16m from Macquarie which was secured against instalments #2 and #3.

#2 was paid in July this year and #3 will be paid in July next year.

I can't find exact details of the repayment but I'd assume that we simply transfer instalments #2 and #3 to Macquarie when we receive them from Arsenal, plus a fixed charge equivalent to something like 7%. (Layman's terms, interest).

This sort of loan is very common and is done to boost cashflow.

We chose to do this because, although we're much healthier overall than we once were, we don't have much cash sat in the bank. This isn't a bad thing per se, but any business needs a certain level of liquidity. This means a pot of cash you can dip into quickly, easily and cheaply if necessary.

The parachute payments were already promised to other clubs/parties and had also already been borrowed against, so going back to Macquarie for an advance on the Ramsdale money was a no-brainer.

For what it's worth, there's a further £6m potentially due from Arsenal. It's dependent on how Ramsdale performs for them, ie it's nothing to do with England caps. I don't know the specifics but the word is that he's on track to meet the targets laid out in the transfer. We haven't borrowed against this £6m as it's not guaranteed, but this also means it would be an additional boost if it happens.
Click to expand...


Yeah but weers munni gone?
 
Panini said:
The guaranteed portion of the fee was £24m. This was split into 3 instalments of £8m.

We received instalment #1 immediately from Arsenal then, in December 2021, we took out a loan of £16m from Macquarie which was secured against instalments #2 and #3.

#2 was paid in July this year and #3 will be paid in July next year.

I can't find exact details of the repayment but I'd assume that we simply transfer instalments #2 and #3 to Macquarie when we receive them from Arsenal, plus a fixed charge equivalent to something like 7%. (Layman's terms, interest).

This sort of loan is very common and is done to boost cashflow.

We chose to do this because, although we're much healthier overall than we once were, we don't have much cash sat in the bank. This isn't a bad thing per se, but any business needs a certain level of liquidity. This means a pot of cash you can dip into quickly, easily and cheaply if necessary.

The parachute payments were already promised to other clubs/parties and had also already been borrowed against, so going back to Macquarie for an advance on the Ramsdale money was a no-brainer.

For what it's worth, there's a further £6m potentially due from Arsenal. It's dependent on how Ramsdale performs for them, ie it's nothing to do with England caps. I don't know the specifics but the word is that he's on track to meet the targets laid out in the transfer. We haven't borrowed against this £6m as it's not guaranteed, but this also means it would be an additional boost if it happens.
Click to expand...
Good summary, I remember reading that the going rate for MacQuarie being around the 10% mark for football clubs, this was pre-current world financial meltdown as well so I wouldn’t want to be borrowing again in future at their new rates.
 
Panini said:
The guaranteed portion of the fee was £24m. This was split into 3 instalments of £8m.

We received instalment #1 immediately from Arsenal then, in December 2021, we took out a loan of £16m from Macquarie which was secured against instalments #2 and #3.

#2 was paid in July this year and #3 will be paid in July next year.

I can't find exact details of the repayment but I'd assume that we simply transfer instalments #2 and #3 to Macquarie when we receive them from Arsenal, plus a fixed charge equivalent to something like 7%. (Layman's terms, interest).

This sort of loan is very common and is done to boost cashflow.

We chose to do this because, although we're much healthier overall than we once were, we don't have much cash sat in the bank. This isn't a bad thing per se, but any business needs a certain level of liquidity. This means a pot of cash you can dip into quickly, easily and cheaply if necessary.

The parachute payments were already promised to other clubs/parties and had also already been borrowed against, so going back to Macquarie for an advance on the Ramsdale money was a no-brainer.

For what it's worth, there's a further £6m potentially due from Arsenal. It's dependent on how Ramsdale performs for them, ie it's nothing to do with England caps. I don't know the specifics but the word is that he's on track to meet the targets laid out in the transfer. We haven't borrowed against this £6m as it's not guaranteed, but this also means it would be an additional boost if it happens.
Click to expand...
Kieran Maguire on the Price of Football podcast always describes this as payday loaning but it’s not. It’s factoring, which as you say is very common, and the interest rates are nowhere near payday loans. It is standard for all sorts of businesses.

There are still a few all up front transfer fees - Leicester insisted Man U pay everything up front for Maguire for example - but that’s uncommon now.
 



Would be nice if the club released information (if it can and if it's not restricted through confidentiality clauses in the deal) around the additional £6m fee which is due depending on targets being achieved. It's part of the transfer deal somi don't know why these conditions couldn't be made available so that everyone knows what they are. The potential extra £6m for SUFC would be a big thing to us as we arent overly flushed with money. If we knew what the targets were we could monitor it and see how close we are to getting the extra spondoolies.
 
Weasel said:
Would be nice if the club released information (if it can and if it's not restricted through confidentiality clauses in the deal) around the additional £6m fee which is due depending on targets being achieved. It's part of the transfer deal somi don't know why these conditions couldn't be made available so that everyone knows what they are. The potential extra £6m for SUFC would be a big thing to us as we arent overly flushed with money. If we knew what the targets were we could monitor it and see how close we are to getting the extra spondoolies.
Click to expand...
Agree it would be nice to know the inner dealings, but I Don’t think they do it to fuck off us supporters

Ramsdale is on 48 arsenal appearances right now - Imagine if they did release the detail and the Monday morning after Ramsdale triggers a £6m payout for 50 appearances we make an JTW bid of £2m for a player - would be like showing our hand at cards

Problem with that deal was he agitated for the move so we had to get what we could
Had he said “you’ve brought me back I’ve contributed to a relegation so i will respect your call.” I think we could have got more and possibly on more favourable terms
 
“For what it's worth, there's a further £6m potentially due from Arsenal. It's dependent on how Ramsdale performs for them”

I’ve heard that we get the extra £6m if Ramsdale scores 15 or more goals in the season and he manages to get at least one hat-trick in doing so. It’s good to know that we’re not the soft touch that we used to be.
 
Probably the most in form keeper in the Prem.
Definitely England's number 1
 
Wonder if they've paid for him yet, maybe that's why we're under an umbongo, cos arsenal haven't paid for Rammers and so we can't afford to pay for Anel
 



Could well be wrong but I believe we get a big wedge if Arsenal win the league with Rammers. Also a clause based on apps for England.
 
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