United borrow money from Emirates

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FATTYFOULKE

FATTYFOULKE

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..Danny Hall tweet

#sufc have borrowed money from Emirates Bank, secured against Bramall Lane and the club's other assets #twitterblades #sufc

I’m guessing this was for the purchase of Bramall Lane.

Wonder if they borrowed enough to go ahead with other plans while they were at it?
 

FATTYFOULKE said:
..Danny Hall tweet

#sufc have borrowed money from Emirates Bank, secured against Bramall Lane and the club's other assets #twitterblades #sufc

I’m guessing this was for the purchase of Bramall Lane.

Wonder if they borrowed enough to go ahead with other plans while they were at it?
Click to expand...
Makes sense I suppose ,we all know he doesn't have the cash to buy it outright and this doesnt affect the playing budget .guess he's a bit screwed if we go down though
 
Charge filed on 1st July 2020 which ties in with the purchase of the Property Options. Loans have been secured before by the Club.

Charge - Find and update company information - GOV.UK

BLADES LEISURE LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity
beta.companieshouse.gov.uk beta.companieshouse.gov.uk
 
No issue with this at all as I've said on another thread.

What would people prefer. The Prince uses the premier league money thus reducing the budget for signings and ground improvements or borrows whilst interest rates are next to fuck all and can be serviced comfortably even if we are relegated?
 
Upton_Blade said:
No issue with this at all as I've said on another thread.

What would people prefer. The Prince uses the premier league money thus reducing the budget for signings and ground improvements or borrows whilst interest rates are next to fuck all and can be serviced comfortably even if we are relegated?
Click to expand...

A couple of things (from a layman)

I suppose borrowing isn't an issue for the reasons you say. However, surely that also depends on the amount borrowed?

He will also be using Premier League money regardless. Paying the loan back (with interest however small) has to be serviced and it won't be serviced with HRH's money so has to come from PL revenues. However, small, payments will have an impact
 
I suppose although it ties in with the purchase of the ground, the reason for the loan could be solely to fund stadium developments. It'd be interesting to hear about that 'good news' soon.
 
Do some maths. Our income is around £120m a year. (It would have been more next season but Covid seems to have cancelled the bulk of the extra) Take £50m from that and you’ve got £70m for next year’s budget which includes the wage bill.
Now consider Burnley have a wage bill just over £80m
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While we wait for the coronavirus pandemic to ease, Burnley chairman Mike Garlick insists “The future is extremely bright for all of us" at the club after recording a net profit for a third successive season during the financial year ending June, 2019.
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And bear in mind we’ve given new contracts to a lot of players, so we could already be approaching £50m.

So, if PA didn’t borrow the money, we wouldn’t have much left for new signings.
 
FATTYFOULKE said:
..Danny Hall tweet

#sufc have borrowed money from Emirates Bank, secured against Bramall Lane and the club's other assets #twitterblades #sufc

I’m guessing this was for the purchase of Bramall Lane.

Wonder if they borrowed enough to go ahead with other plans while they were at it?
Click to expand...
It was nothing of the kind. This relates to McCabe turning up at the airport with oversize baggage that he was planning to carry on board. Emirates said it was too big and heavy and would have to go in the hold. There was an additional charge for that but he didn’t have any cash on him and his credit cards were maxed out. So Emirates lent him the money so he could board the flight. That’s all.
 
As I said on the other thread ('1st of July') before being slated, caution required United now going into significant detrimental cash position (debt) or whatever the accountants call it, all's fine unless we get relegated.
 
8lade said:
As I said on the other thread ('1st of July') before being slated, caution required United now going into significant detrimental cash position (debt) or whatever the accountants call it, all's fine unless we get relegated.
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There was a court case which set out who was to buy it and arbitration to say how much.

Why is our cash position now detrimental other than financing the loan?

Paying out of the PL money would have a far bigger impact.
 

8lade said:
As I said on the other thread ('1st of July') before being slated, caution required United now going into significant detrimental cash position (debt) or whatever the accountants call it, all's fine unless we get relegated.
Click to expand...

We have assets though at least, if we went down next season we probably have close to £100m in the squad, and parachute payments.

Obviously depends how much it is, but let's be honest, we've been in a quite poor state financially when spending naff all and standing still or going backwards, so may aswell have a bit of risk for the chance of moving forwards.

Prince has proven himself an intelligent man, so I'll give him the benefit of the doubt.
 
People getting paranoid about this. We dont know the amount (may never know). But nevertheless if it is to purchase the real estate then that is how business works. Borrowing sensibly against assets and future income leaving working capital for ongoing costs ie players acquisitions, squad/staff wages.

We have secured guaranteed income of £240 million for this season and next and hopefully a few seasons after that, plus parachute payments (for two further seasons?) If we were to get relegated then we would hopefully paid of the majority of the debt.

Doubt very much PA would take any risks with such an incredibly valuable asset which he will want to protect for his and his familys future.
 
blade too long said:
business takes out mortgage shocker

never been done before

man utd had one for 550 million quid under glaziers
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If your trying to make a case for it being usual business practice I wouldn't use the example of the worst in football! Hardly worked out well for them
 
I don't know why but I have to keep repeating myself, this is not something I am against and it is a necessity however it is not something to be gloried in either. A lot of people seem to be seeing this as a black and white issue, it is not. Sometimes I wonder if I've logged on to porktalk by mistake.
 
It might be wise to borrow the money, and keep the ’cash’ from the PL. In uncertain times ahead, borrow while you can, and keep back up readies in the bank.
If next season get’s cancelled and our income is reduced, and we’ve blown our cash buying the ground, it would be harder to borrow money then.
 
You can't pour yourself a glass of water without going into debt. The question is always whether you have the ability to service that debt. And who knows what the terms are, what our financial plans are, and what the future might bring?

All I can say is that the arrival of the Prince didn't start great (all the "think Liverpool" threads we enjoyed) but has been a general upward trend across the board. We've increasingly improved the squad, we've retained players in a way we've never known, the relationship with fans has generally been great, and we've done it all in a way that appears to be financially sensible. No reason to assume at face value that this isn't equally well planned.

But the reality is that the quality chairmen and owners is decided in the long term. Longer than the Prince has seen. I don't like the thought of the club having a huge debt hanging over it because we've seen these things go wrong elsewhere, but equally we've seen it go very well.
 

Blade58 said:
A couple of things (from a layman)

I suppose borrowing isn't an issue for the reasons you say. However, surely that also depends on the amount borrowed?

He will also be using Premier League money regardless. Paying the loan back (with interest however small) has to be serviced and it won't be serviced with HRH's money so has to come from PL revenues. However, small, payments will have an impact
Click to expand...

I get that but say he has borrowed the full £50m over 25 years. That's £2m per year plus interest so maybe £2.2m per year at the worst case scenario.

If he had taken the full £50m out of the prem monies then this leaves us £48m up next season to improve the squad and ensure we remain a top flight club.

I know which i'd prefer.
 
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