Blades secure loan against Prem TV money

[Houston_Blade]

Is this just a renewal of the one from last year? If so then it’s not even news. These loans are generally short term and renewed instead of repaid at the end of their initial term. If the bank are happy that we’ve got the revenue to cover it then they’ll renew, given our risk level is now higher I assume the interest rate will have increased but couldn’t be sure.

 

[1889]

If the season was abandoned in favour of a points per game calculation and we got relegated, the TV revenue from the current season would be hugely reduced. Possibly even to a point where teams would be faced with a situation where they’d be paying money back.

 

[DronnieBlade]

Let’s be honest.

Its a Shyte practise, widely used throughout football.

And clubs then wonder how they have gotten in to trouble !!!

UTB

 

[Houston_Blade]

Let’s be honest.

Its a Shyte practise, widely used throughout football.

And clubs then wonder how they have gotten in to trouble !!!

UTB

Borrowing money is hardly a football specific phenomenon though. The difference with football is that there is a lot of guaranteed future revenue in the PL and banks are obviously happy to make a bit of money based on this.

I’m comfortable with us borrowing on this fairly risk free basis, it’s clear that PA hasn’t got the cash to bankroll us at anything above a league 1 level. The problems will start when we pile borrowings on borrowings or start penny pinching from fans like some other clubs very close to us.

 

[JJBlade]

Whats emabarrassing about borrowing money from a financial institution
We sold players as we were in L1 for 6 years running a Championship budget

What players have we sold since we got promoted to the Championship that Wilder wanted to keep

But this is Sheffield, debt is bad, all debt is bad, except them short term deals on 1579% APR

Interest rates being what they are for savers and borrowers, it's pretty stupid using your savings to buy anything at the moment. And the same goes for corporate borrowing as well.

Borrow it instead.

We need to change her indoors car, she's had it 12 years and loves her car, she almost cries when I mention changing it, but it needs changing, it's going to let her down big time one of these days.

£12,000 over 5 years means we'll repay £12,518 over 3 years

We've got the cash already, but why use it ?
I'm sure I can turn £12,000 into more than £12,518 over three years

 

[DronnieBlade]

Borrowing money is hardly a football specific phenomenon though. The difference with football is that there is a lot of guaranteed future revenue in the PL and banks are obviously happy to make a bit of money based on this.

I’m comfortable with us borrowing on this fairly risk free basis, it’s clear that PA hasn’t got the cash to bankroll us at anything above a league 1 level. The problems will start when we pile borrowings on borrowings or start penny pinching from fans like some other clubs very close to us.

Slippery slope fella.

If the TV money was ever to dry up.........

Manchester Rovers.
Liverpool United.
East London Fucktards .

You get my drift ????

UTB

 

[Trafford]

Slippery slope fella.

If the TV money was ever to dry up.........

In the world of corporate finance, you borrow money when you are in the strongest position to do so, as you can borrow more and at a lower price, ie when you are in the Premiership. It doesn’t mean that you have to spend it all though or even draw it all down, you just secure the money on the best terms and make sure that you have the ability to repay it, which is via the TV monies.

 

[FriethBlade]

And that is the point Dronnie...all this its risk free for the banks as its secured against clubs future TV money is b.s. That TV money isn't guaranteed....for example if this season gets called off what's going to happen to the TV money ?

For the banks its a risk worth taking with rates so low and free money available from the BOE the rates they will be charging clubs is way above virtually any other area of the economy they could put it into. For clubs it works whilst ever they are getting premier league money.

The fly in the ointment is relegation and/or big drop in TV revenue.

 

[Houston_Blade]

Slippery slope fella.

If the TV money was ever to dry up.........

Manchester Rovers.
Liverpool United.
East London Fucktards .

You get my drift ????

UTB

I agree, I’d much rather have ‘benevolent dictator’ and not in the sense of the pigs, more Chelsea/City. Not going to happen though and PA isn’t loaded so this is the only way.

The worry is that if Burnley have reportedly taken out a loan at 10.5%+ what rate are we getting?!

 

[BlairBlade]

Strange considering there will be no Premier league tv money.... However if a bank has authorised it, it's on them (the TV money is basically the collateral I presume).

Strange for a bank to do this.

Unfortunately, these days banks rarely do strange things when lending money.
Let us hope there is excellent and sufficient security for any money loaned.
Additionally, let’s hope that there will be money available for the team now and next season which is safe from the grasp f the bank(s).

 

[DronnieBlade]

In the world of corporate finance, you borrow money when you are in the strongest position to do so, as you can borrow more and at a lower price, ie when you are in the Premiership. It doesn’t mean that you have to spend it all though or even draw it all down, you just secure the money on the best terms and make sure that you have the ability to repay it, which is via the TV monies.

I’m not disputing we all do it. Even as individuals. Most of us have car loans and mortgages. Same difference really !!

It’s the principle of utilising future profits in the present when it comes to “big” business.

Id much sooner we used the current profits now and leave the future to then.

In my experience, the most successful individuals AND businesses have savings or cash on the balance sheet. They are clever enough to understand the ravages of compounding interest charges !!

But we live in an instant / now society so tis what it is !!

UTB.

 

[DronnieBlade]

I agree, I’d much rather have ‘benevolent dictator’ and not in the sense of the pigs, more Chelsea/City. Not going to happen though and PA isn’t loaded so this is the only way.

The worry is that if Burnley have reportedly taken out a loan at 10.5%+ what rate are we getting?!

Bout the same I would imagine and would, broadly, indicate the perceived risk to the financial institution handing out the dough.

10.5% pa interest is fucking scary though.
UTB

 

[DronnieBlade]

And that is the point Dronnie...all this its risk free for the banks as its secured against clubs future TV money is b.s. That TV money isn't guaranteed....for example if this season gets called off what's going to happen to the TV money ?

For the banks its a risk worth taking with rates so low and free money available from the BOE the rates they will be charging clubs is way above virtually any other area of the economy they could put it into. For clubs it works whilst ever they are getting premier league money.

The fly in the ointment is relegation and/or big drop in TV revenue.

Risk free for the Banks

Co-op might disagree !!!!

There is risk in everything. Everything.

When D day does finally arrive for the wonderful mad world of football, it will only be the leanest and fittest that will survive.

Those geared up to the hilt will not !!!!

UTB.

 

[Harrisblade]

It means the Prince has no money

Sheffield United have obtained a loan with their Premier League payments as security, shows filings from Companies House.​

The club follow in the footsteps of several Premier League clubs who have performed similar manoeuvres.​

 

[FriethBlade]

Risk free for the Banks

Co-op might disagree !!!!

There is risk in everything. Everything.

When D day does finally arrive for the wonderful mad world of football, it will only be the leanest and fittest that will survive.

Those geared up to the hilt will not !!!!

UTB.

Not sure you read my post correctly.....I said all this its risk free for the banks is b.s. meaning bull shit...I agree with you

 

[DronnieBlade]

Not sure you read my post correctly.....I said all this its risk free for the banks is b.s. meaning bull shit...I agree with you

Agreed. Guarantees, and those that purport to provide them are, for the most part in this day and age, not worth the paper they are written on unless secured against tangible assets such as property.

UTB