United borrow money from Emirates

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Upton_Blade said:
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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Me being the eternal pessimist where the Blades are concerned, my worry where your example is concerned, is finding the £2m per annum when we are back in League one without a pot to piss in 😩
 



8lade said:
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.
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Me too.
 
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
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Blade58 said:
Me being the eternal pessimist where the Blades are concerned, my worry where your example is concerned, is finding the £2m per annum when we are back in League one without a pot to piss in 😩
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True but the £2m interest per annum would probably amount to the cost of the rent the Club would have had to pay if they hadn't secured the Assets.
 
8lade said:
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.
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Blades Loan Matters 👍
 
Consolidate in the PL we'll be borrowing to fund the stadium improvements anyway but the club is already worth more than the £50m plus initial investment that HRH has forked out and will increase in value the longer we stay up there.

Covid 19, Black Death, Bubonic Plague Permitting.
 
Blade58 said:
Me being the eternal pessimist where the Blades are concerned, my worry where your example is concerned, is finding the £2m per annum when we are back in League one without a pot to piss in 😩
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Wow and I thought I was a glass half full man :rolleyes:
 
I'm ok with us having a loan, but, obviously,we have to be careful in that we can't rely on being in the Pl every season, only the top clubs can rely on that. I'm ok with us not spending much on transfer fees if that's where we're at, and whilst ever Chris Wilder is in charge all will be very good. He's ambitions of course, but I think with the odd sale no doubt along the way for good business, then I think we'll be fine. Just don't want us to go down the same route as many other clubs and overspending on players.

We do need to improve the ground and the training ground and if that' what the money is needed for, then that's fine as long as we don't repeat the mistakes of when we built the south stand. I just don't want to go down the line of spending silly money on players and wages/agents! The latter comes with the territory but we seem to be savvy enough to avoid paying players silly money, and if anyone doesn't want to come to us because we don't pay enough then they're probably not the type we want anyway!
 
BushBlade said:
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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Burnley Football Club announce a net profit for the third-successive season

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.
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Same argument that the 12k a year secretary makes when buying a Gucci handbag on the visa card. The other option is you live within your means but thats not the modern world is it.

Its a function of having an owner who doesn't have the liquid assets to compete in the Premiership and fulfill the terms of the buyout.

Its a speculate to accumulate strategy and not necessarily wrong. However whats the interest rate? Is it a fixed or floating rate?

If we stay up for a number of seasons its not a problem but if we get relegated we end up a championship club with shit loads of debt on the balance sheet and thats not a good position to be in. Plenty of.other clubs will confirm that.
 
I think you’d have to be pretty insane, or infinitely wealthy to pay £50m upfront for a property, particularly at a time where cash flow is more important than ever.

I doubt many businesses in the world would do this, so it all seems to be a moot point/attempt by the Star to generate some traffic.
 
FriethBlade said:
Same argument that the 12k a year secretary makes when buying a Gucci handbag on the visa card. The other option is you live within your means but thats not the modern world is it.

Its a function of having an owner who doesn't have the liquid assets to compete in the Premiership and fulfill the terms of the buyout.

Its a speculate to accumulate strategy and not necessarily wrong. However whats the interest rate? Is it a fixed or floating rate?

If we stay up for a number of seasons its not a problem but if we get relegated we end up a championship club with shit loads of debt on the balance sheet and thats not a good position to be in. Plenty of.other clubs will confirm that.
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It’s a mortgage type loan. Why would we pay cash and starve the club of working capital?

The comparison above is completely different to the situation we are in. Banks are generally very picky on who they loan to nowadays, they will be quite comfortable that the repayments can be met or they wouldn’t offer it.
 
Current financial climate to borrow that amount, you'd need the guarantee that you place a security for that amount pretty much. Good business at this time and I currently believe we are in a healthy financial position from what I can glean.😎
 
Look at Bournemouth they have to sell in pl or not 11k stadium etc
 
Upton_Blade said:
Wow and I thought I was a glass half full man :rolleyes:
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Where the Blades are concerned Upton, I've always been a glass half empty supporter.

Don't know your age Upton, but I've hit my 60's and a blade for 50+ years. Many supporters of that age will have the same dark thoughts that I do. It's only natural mate seeing them year after year through thin and thinner.

Currently loving it, especially after just a few short years ago I'd resigned myself to never seeing them back in the big time again

UTB
 



Football is run on a fine line, make the mistake of buying expensive players on big salaries who flop, sell your best players or lose your manager it can soon all go wrong.
Sunderland says it all, fabulous academy and improved stadium holding 50k, but when it goes wrong you will end up in free fall massive debt, you know the rest
 
Daft question (but I’m prone to them) If the arbitration hasn’t set the price of the grained etc how much did he know to borrow?
 
Niceguyeddie said:
It used to be a gym but now its an academy ,with a gym and a few AstroTurf pitches
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It was only a smallish plot of land which United custom built a small academy for young prospective footballers. I think it has also been used for young children to get coaching by professional coaches .
I dont think it has been fully utilized in recent years.
 
finlaytheblade said:
It was only a smallish plot of land which United custom built a small academy for young prospective footballers. I think it has also been used for young children to get coaching by professional coaches .
I dont think it has been fully utilized in recent years.
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I used to live just round the corner and was a member of the gym when it was a Sheffield united gym ,it wasn't very good though but the staff were great
 
Really can't see the issue with this. If we borrowed £50 million and got relegated next season, there's next years revenue, 3 years worth of parachute payments, and player sales (inevitable if they want to stay Premier League players). I think we'd cover it ok.
 
Just looked at the 5 parcels of land we've mortgaged - if the Enterprise Centre & the Hotel are leasehold , who is our landlord ? Kevin ?
 
We are F@#ked if we get relegated.
Its no different to what Chancer's done at Hillsborough.
We also have another loan against payment from Premier League from some Australian Bank.
We are already down 20-30 million on Premiership money because of Covid.
The Prince is skint.

All according to Porktalk.

We are Doomed We are Doomed i tell yer.
 
Broomhall Blade said:
We are F@#ked if we get relegated.
Its no different to what Chancer's done at Hillsborough.
We also have another loan against payment from Premier League from some Australian Bank.
We are already down 20-30 million on Premiership money because of Covid.
The Prince is skint.

All according to Porktalk.

We are Doomed We are Doomed i tell yer.
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It will make the jihadi jhon st all the more epic when I next read it
Ebbs and flows like a soap opera
 



I’ve no issue with this what so ever ,
Spurs have borrowed north of £120 million from the Bank of England, to cover there loses due to C19 , they’ve lost 2 American football games I think a few concerts not to mention revenue from home games ( they make 800 thousand from catering alone for each home game )
Arsenal are rumoured to be losing 140 million this season ,
Once it’s used correctly to better Sheffield United FC , then I won’t complain , once it’s doesn’t bankrupt the club , like Leeds and there champions league fiasco
 
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