£7.5m bank loan

[Smirth]

Not sure it's that standard practice and I think our popping to the Bank of Essex began when the owners fell out.
It's probably in place of the owners themselves actually fronting up.

But do we have another precedent to compare it to? I think the last time we received such a substantial fee was in 2009/10 selling the 2 Kyle’s.

All we have done is freed up the capital in the form of loan to have it available now.

We could look at it optimistically and say this way we have money available to spend in January now.

 

[Blade58]

Not sure it's that standard practice and I think our popping to the Bank of Essex began when the owners fell out.
It's probably in place of the owners themselves actually fronting up.

We also did this last season/or the season prior. I can't remember who we borrowed against tho (which player/fee)

A director for the club told me it is common practice

 

[Smirth]

From a League 1 owner. It’s common practice.

 

[Bladesman]

We did the same thing with the Tevez money. We just made the mistake of giving that cash to Robson to piss up against the wall.

 

[Rusty view]

My glass is always half full, so this loan will be to cover the other instalments due from Bournemouth. Meaning we have the full amount(minus the initial instalment) available for January allowing us a bit more flexibility when clubs want monies in instalments which fall outside our budget. And potentially allowing us to other a better deal than other clubs can.

As said above Owners would probably cover this sort of thing but with court proceedings on-going this probably hasn't be possible/advisable.

Yours Faithfully
The Eternal Optimist

 

[Harrisblade]

We could look at it optimistically and say this way we have money available to spend in January now

And that's quite enough of this 'optimistic' rubbish, young feller-me-lad!

 

[Pedro's Winger]

We also did this last season/or the season prior. I can't remember who we borrowed against tho (which player/fee)

A director for the club told me it is common practice

Not sure our financial records would show it's common practice. On this occasion maybe more likely linked to the fallout and how the club's being financed and run at the moment.

 

[Harry's Game]

The Mediation will sort this out.

 

[8lade]

So at least we know the prince and kev haven't kissed and made up yet.

Not sure it's that standard practice and I think our popping to the Bank of Essex began when the owners fell out.
It's probably in place of the owners themselves actually fronting up.

Exactly my thoughts, until the dispute is settled the club will be 'funding itself' (with maybe other loans). Nobody is daft enough to give money to their mortal enemy.

 

[Revolution]

From a League 1 owner. It’s common practice.

Yes, it's factoring, to be technical. Common in the business world generally.

 

[Sean Thornton]

Not sure our financial records would show it's common practice. On this occasion maybe more likely linked to the fallout and how the club's being financed and run at the moment.

Well neither of them will put anymore cash into shares. That would be stupid.

 

[wizadry]

But do we have another precedent to compare it to? I think the last time we received such a substantial fee was in 2009/10 selling the 2 Kyle’s.

All we have done is freed up the capital in the form of loan to have it available now.

We could look at it optimistically and say this way we have money available to spend in January now.

If this was the case, and I’m not saying it is, then why not get the loan towards the end of December?

 

[Nicolaus_Copernicus]

I suspect that it is to pay for the running of the club, as opposed to player purchases.

Excuse my ignorance, but if it were to fund player purchases, wouldn’t it be easier to make a small payment upfront and make our repayments out mesh with Bournemouth’s coming in?

 

[Smirth]

If this was the case, and I’m not saying it is, then why not get the loan towards the end of December?

Why wait and risk any hiccups? Better to be organised?

Perhaps we are already lining up deals in the background?

No one really knows the inner workings, other than those involved. But I really wouldn’t be worried about this.

 

[Sean Thornton]

I suspect that it is to pay for the running of the club, as opposed to player purchases.

Excuse my ignorance, but if it were to fund player purchases, wouldn’t it be easier to make a small payment upfront and make our repayments out mesh with Bournemouth’s coming in?

Hopefully a combination of both.

 

[LJBlade]

Not sure it's that standard practice and I think our popping to the Bank of Essex began when the owners fell out.
It's probably in place of the owners themselves actually fronting up.

You’re wrong but don’t let that get in the way of your constant need to be negative Len.

 

[Patrick Suffaux]

I’m pretty sure this kind of borrowing is normal in football. I’ve heard similar things before. Not news really is it? As long as it stacks up I don’t really care.

 

[wizadry]

Why wait and risk any hiccups? Better to be organised?

Perhaps we are already lining up deals in the background?

No one really knows the inner workings, other than those involved. But I really wouldn’t be worried about this.

There’d be no risk as they know we have the Brooks money lined up.

If your suggestion is the case then we’re paying interest on a loan that didn’t need getting until nearer January and that’s my point.

....and I’m not worried.

 

[DronnieBlade]

And 6.5% is the default interest rate, which normally only applies if payment terms aren’t adhered to. But never let the facts get in the way of a pre-conceived opinion.....

1. It’s base + 6.5%. Which would be about right in the banking world when it comes to a Championship football club, however the lending is structured or against whatever future payments it is secured against.

2. It just said Essex based. Couldn’t care less who it’s named as. The fact it is known which bank it is, and I didn’t pick this up is fair game for a few of you it seems. Wonder why ?!!

UTB

 

[blade too long]

consolidating all our previous loans into one , makes sense with the bonus bournemouth are paying it off

saving lots of interest

 

[Ainsley Harriott]

We did the same thing with the Tevez money. We just made the mistake of giving that cash to Robson to piss up against the wall.

Somebody genuinely told me that McCabe put the lot of that on a roulette wheel in Vegas. Placed red but span black. He was serious n all

 

[Worksop II]

Well neither of them will put anymore cash into shares. That would be stupid.

I would imagine that's right up them pairs street then .......

 

[Sean Thornton]

1. It’s base + 6.5%. Which would be about right in the banking world when it comes to a Championship football club, however the lending is structured or against whatever future payments it is secured against.

2. It just said Essex based. Couldn’t care less who it’s named as. The fact it is known which bank it is, and I didn’t pick this up is fair game for a few of you it seems. Wonder why ?!!

UTB

Oooh!

You said "unnamed." (Which wasn't the case). As if it were a secret or not quite kosher. Otherwise was was the point of phrasing your comment in that way?

 

[Sean Thornton]

I would imagine that's right up them pairs street then .......

I would imagine you imagined nothing less.

 

[Sean Thornton]

consolidating all our previous loans into one , makes sense with the bonus bournemouth are paying it off

saving lots of interest

Not the case though is it?

 

[DronnieBlade]

Oooh!

You said "unnamed." (Which wasn't the case). As if it were a secret or not quite kosher. Otherwise was was the point of phrasing your comment in that way?

I rest my case.

Like the Murphys .................

UTB

 

[blade too long]

Not the case though is it?

who knows
its as likely as some of the theories

perhaps the club is not as Machiavellian as some make out

 

[Sean Thornton]

who knows
its as likely as some of the theories

perhaps the club is not as Machiavellian as some make out

It's not the case.

 

[Sean Thornton]

I rest my case.


UTB

Resting it easier than answering the question I take it?

 

[Houston_Blade]

Sounds to me like both owners have decided they aren’t footing the bill this year as the legal case goes on, therefore they are funding the losses through debt for the whole season. The security against the Brooks transfer is due to the fact that the entity that is taking the loan out (i.e. the football club) doesn’t really have many assets on its books.

I just hope that there’s something in the loan agreement that once the ownership situation is sorted, whoever wins has to settle the loan and pony up their own cash. Don’t want to see us getting into a situation with the banks.