Increase in money = less debt?

[Foot Long Hot Dog]

Once the overseas deal is finalised (around October), the total net increase in TV revenue, for each PL club is expected to be circa £25M from next season onwards.

It's interesting to see that during this window there appears to have been a much more prudent approach to both fees & wages by the majority of the PL. I think to assume that this cash will flow straight into the pockets of players & agents is somewhat presumptious, as maybe finally, football has learnt its lesson.

For this vast increase in revenue to have the maximum long term impact, it should be used to improve the clubs crumbling infrastructure.

 

[Tennessee Blue Mike]

and when the bubble bursts and companies decide they won't / can't afford to pay so much for the TV right then everyone is screwed. Get teh debts paid off, pay players a reasonable figure and don't pay stupid transfer fees. I'd love to see a salary cap introduced

When that happens and it will. Teams like us will have a level playing field than what they do today(circa 1960's) You will only see the most well run clubs survive the insanity of paying athletes 100k a week. It is coming down the track but still a little way off.

 

[johnnydawg68]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

 

[Tennessee Blue Mike]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

Clearing four mortgages recently is probably what the club is active in at the moment. Good post.

 

[Whitty]

Once the overseas deal is finalised (around October), the total net increase in TV revenue, for each PL club is expected to be circa £25M from next season onwards.

It's interesting to see that during this window there appears to have been a much more prudent approach to both fees & wages by the majority of the PL. I think to assume that this cash will flow straight into the pockets of players & agents is somewhat presumptious, as maybe finally, football has learnt its lesson.

For this vast increase in revenue to have the maximum long term impact, it should be used to improve the clubs crumbling infrastructure.

I read a small artcile in one of the business / financial sections of the paper on Saturday and it was basically saying that the banks are reluctant to finance large transfers for clubs anymore. I'm sure the clubs would spend it if they could

 

[Tennessee Blue Mike]

I read a small artcile in one of the business / financial sections of the paper on Saturday and it was basically saying that the banks are reluctant to finance large transfers for clubs anymore. I'm sure the clubs would spend it if they could

In the real world Banks are afraid to lend money at the moment across the board. Most all nations are experiencing recession no matter what the main stream media are spouting.

 

[pfim]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

A level of common sense rarely injected into these discussions.

 

[Foot Long Hot Dog]

I read a small artcile in one of the business / financial sections of the paper on Saturday and it was basically saying that the banks are reluctant to finance large transfers for clubs anymore. I'm sure the clubs would spend it if they could

Banks have been running away from 'high risk' businesses since 2008 mate. Football definitely falls into that category & bank funding will very hard to obtain for most clubs in the current climate.

This combined with FFP might see some common sense finally prevail, not holding my breath like, but we can live in hope.

 

[Ravensblue]

I'd imagine we're swimming against the tide, just paying back the interest on the loans and mortgages. This might allow us to make more of a dent in the debt, but will continue to mean we have to sell to generate funds to buy players.

If there's £45m of debt presently, making a £15m lump payment might clear anything between £9-£12m off the actual debt due to interest rates.

Am sure we where reported as having £45mill worth of debts in 2009.

So if after all the money raised over the past few seasons that figure is still the same then this money will probibly just end up in the "other" column again.

 

[tim cahill]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

That won't last forever though. We don't want to have to sell another star just because the interest rates go up.

 

[Bruce Wayne]

bang goes any chance of our National team doing anything in the next decade or so then

Depends if our players have the desire to play overseas rather than pick up more money in the reserves of a PL club.

 

[mikewex]

The cost of borrowing is soooooo low these days, anything other than clearing away old loans at higher interest rates and replacing them with new debt at very low interest rates would be utter madness. Assuming the club has the credit rating to borrow at those rates.

A significant chunk of the debt though (about 25m) is the debenture, and there isn't much you can do with that. Penalty for redemption would be high. So its the balancing 25-30 mill (worst case I'd have thought, non debenture bank debt end of 2011 was 22m) you are looking at. I saw someone with access to companies house had published that Everton had satisfied all (?) the liens including the BVI one. Anyone know if any more have been taken out?

 

[CahillsCornerFlag]

So have we got rid of all of our smaller loans etc and consolidated to one large one being paid off over a longer term?

 

[mikewex]

So have we got rid of all of our smaller loans etc and consolidated to one large one being paid off over a longer term?

No, we did way back. 2002 or somewhere thereabouts? A debenture of 30m was created against STs to cover existing debt and create a pot for transfers.

Current scenario is that a lot (maybe all, not sure) of the mortgages have been closed off other then the remaining debenture, but not sure if a separate one has been opened. Its also worth remembering with these that just because there is a lien for an amount out there, doesn't mean that amount is outstanding, or possibly was ever outstanding. It may never have been fully drawn down.

 

[kenada_blue]

10 more years Bill.

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