Get rid of the debt by doing this

[Bruce Wayne]

It's like paying off your credit card. You'll only bash it again straight away for non essential purchases.

It's the whole irrationality of taking on debt. The only way it makes sense is if you're buying something that will increase your subsequent earning power. An education would be one such thing, as would arguably a property. Anything else is madness. If you couldn't afford it straight up, how are you going to be able to afford it with interest on top?

 

[chicoazul]

It's the whole irrationality of taking on debt. The only way it makes sense is if you're buying something that will increase your subsequent earning power. An education would be one such thing, as would arguably a property. Anything else is madness. If you couldn't afford it straight up, how are you going to be able to afford it with interest on top?

I would wager it's necessity when you're not on a great wage and something needs fixing in the house or something mate.

I'm lucky, I don't carry anything over on my credit card but plenty are not in the position where they can. Like me mar for example.

 

[Bruce Wayne]

But unless you're going to increase your income it's trying to dig your way out of a hole isn't it?

 

[chicoazul]

But unless you're going to increase your income it's trying to dig your way out of a hole isn't it?

Say it's winter and your boiler breaks in the family home. You've not got the money to cover it but can pay by credit card. You do what you have to.

I think the problem starts when people start using them for non essential items, which plenty do.

 

[Bruce Wayne]

Aye, it's hard at times, no denying that.

 

[chicoazul]

Aye, it's hard at times, no denying that.

Could you try better to conform to the tory stereotype I'm transparently trying to snare you into please.

 

[njligernj]

Last year Everton had a total debt at 44.9 mill. Let's say its 46mill atm.

Why not sell
Jags - 18 mill (tought decision, but we have some young lads who hopefully can do a good job. Or Hibbert)
Rodwell - 21 mill (think he will be injury prone...and I will keep Baines)
Billy - 5 mill (enough!)
Yak - 2 mill

Then we can start with no debt , not paying 4-5 mill each year in interests.

No ... no ... and no.

Do you think if we have an "extra" 4-5 mil it will go on players? Please. We'll still have nothing to spend and we'll be down a bunch of great players, have the rep of a selling club so everyone will tap up the rest ... it's just horrendous on every level. Please stop.

 

[trigger the blue]

Last year Everton had a total debt at 44.9 mill. Let's say its 46mill atm.

Why not sell
Jags - 18 mill (tought decision, but we have some young lads who hopefully can do a good job. Or Hibbert)
Rodwell - 21 mill (think he will be injury prone...and I will keep Baines)
Billy - 5 mill (enough!)
Yak - 2 mill

Then we can start with no debt , not paying 4-5 mill each year in interests.

CRASH AND BURN with this!!!!!!

 

[Matt Damon]

He's not considered that these loans may have "penalty payments" for early repayment.

So even if we liquidate assets if we pay it back early we would have to pay more than the loan amount.

Its one way that the banks/institutions ensure a certain level of revenue in that event. Meaning it may be £46 million but if we wanted to clear it we'd have to pay £55 million (or similar).

If the agreed payments are made on time the COST to the club will be fixed.


So its a nice thought by Steele, but not realistic. You don't liquidate revenue generating assets to pay loans unless they're on the verge of depreciating rapidly.

You increase turnover and use PROFIT to pay off the debt at an accelerated rate (above the agreed repayment rate).


q.v. Financial Fair Play Regulations.

 

[Neiler]

He's not considered that these loans may have "penalty payments" for early repayment.

So even if we liquidate assets if we pay it back early we would have to pay more than the loan amount.

Its one way that the banks/institutions ensure a certain level of revenue in that event. Meaning it may be £46 million but if we wanted to clear it we'd have to pay £55 million (or similar).

If the agreed payments are made on time the COST to the club will be fixed.


So its a nice thought by Steele, but not realistic. You don't liquidate revenue generating assets to pay loans unless they're on the verge of depreciating rapidly.

You increase turnover and use PROFIT to pay off the debt at an accelerated rate (above the agreed repayment rate).


q.v. Financial Fair Play Regulations.

Thats the securlisation deal, there is other debt that technicaly could be paid down. To be honest, not ideal we actually have the best type of these deals in football. They account for a substaional amount of debt at Newcastle and Utd - with rates of 14% almost double what we pay in interest.

It will never happen because the debt is managable its like the debt of a country its unlikely to be paid untill the club is taken over.

A simpilar course of actions for the board is reduceing outgoing the biggest of which is player wages to free up capital. This is far more likely then paying down the loan.

 

[Matt Damon]

Thats the securlisation deal, there is other debt that technicaly could be paid down. To be honest, not ideal we actually have the best type of these deals in football. They account for a substaional amount of debt at Newcastle and Utd - with rates of 14% almost double what we pay in interest.

It will never happen because the debt is managable its like the debt of a country its unlikely to be paid untill the club is taken over.

A simpilar course of actions for the board is reduceing outgoing the biggest of which is player wages to free up capital. This is far more likely then paying down the loan.

There's going to be somewhat something of a contraction anyway over the next three years in player wages.

This is since economic growth is expected to be sluggish, and the financial fair play regs kick in. Club's revenues in many cases will be maxed out.

I can't see certain club's going up higher, especially in London.


No matter, what Scuadmore says the TV deals have peaked.

 

[Neiler]

There's going to be somewhat something of a contraction anyway over the next three years in player wages.

This is since economic growth is expected to be sluggish, and the financial fair play regs kick in. Club's revenues in many cases will be maxed out.

I can't see certain club's going up higher, especially in London.


No matter, what Scuadmore says the TV deals have peaked.

Not so sure mate, maybe TV the growth arket will be overseas and online right i can see that area growing and supplementing increaes. Its irrelevent anyway the increase in deals just mean more wages for the players.

 

[Matt Damon]

Not so sure mate, maybe TV the growth arket will be overseas and online right i can see that area growing and supplementing increaes. Its irrelevent anyway the increase in deals just mean more wages for the players.

Its not irrelevant mate, thats the point. TV markets are saturated as it is. Can you see people paying even more for Sky subscriptions when pay is stagnant?


Then there's the natural pressure for the regulations - as you said about Everton - to force wages down (which are rising HIGHER than the increases of recent years).


The regs are about decoupling that. Objective numero uno.

 

[Neiler]

Its not irrelevant mate, thats the point. TV markets are saturated as it is. Can you see people paying even more for Sky subscriptions when pay is stagnant?


Then there's the natural pressure for the regulations - as you said about Everton - to force wages down (which are rising HIGHER than the increases of recent years).


The regs are about decoupling that. Objective numero uno.

All great points mate, but there remains untapped markets - if you post a thread here on a Saturday saying link to perfect stream i gaurentee you thousands of hits. There are massive markets internationaly in terms of syndication to rights and different formats that need to be growen and explored.

You have hundreads of thousands of people viewing illegal streams every weekend, massive market left untapt and the next growth area for me is online rights.

 

[Matt Damon]

All great points mate, but there remains untapped markets - if you post a thread here on a Saturday saying link to perfect stream i gaurentee you thousands of links. There are massive markets internationaly in terms of syndication to rights and different formats that need to be growen and explored.

That doesn't mean people are prepared to pay for them *hint*

You have hundreads of thousands of people viewing illegal streams every weekend, massive market left untapt and the next growth area for me is online rights.

Whilst people might be willing to attend a match as a luxury payment.

They in this economic climate don't and wont have the money for further increases in subscriptions.


Sky's been disgraceful. They closed down two tv stations (one on freeview) during an "acquisition" that should never been allowed, moved all their content to Sky One and Sky Atlantic then increased subscriptions by £5 a month.

Competition commission should never of allowed it. And it should have been blocked by the then Media Secretary.

People have a limit on what they'll pay and Sky are well and truly at it.



The Champions League final tickets £225 ! FA Cup final £100+ a ticket. People are being priced out.

It'll come back against the sport soon enough.