It’s not like Acun isn’t taking money out either. He’s charging the same interest rates the Allams did.
They both charged 5% interest on shareholder loans. The intentions don’t really matter if the outcome is the same.
I have almost 0 inside info. The one cast iron bit that I have had for some time (over a year) is that Ehab wants back in. If not with us, then someone else.
I think like Acun like Ehab likes the profile and status-‘sign of business success’ not footballing !
In fairness the Alarms started at 5%, then dropped it to 4%. The views expressed in my posts are not necessarily mine.
Scunthorpe are open to offers, a shorter name for them could hold appeal for him. The views expressed in my posts are not necessarily mine.
You’ll struggle to find an owner who doesn’t though. Would be worse if he was borrowing it off someone that isn’t himself
5% is uncommonly high for interest rates on shareholder loans. Most owners charge low interest or none at all.
I’ve seen this said a lot but never quantified, any examples? 5% seems like a pretty good rate to me.
Could be worse... Under the terms of the Glazers' refinancing, as they were unable to repay bondholders by 16 August 2010, the overall interest rate on the loans rose from 14.25% to 16.25%, resulting in annual payments of around £38 million. https://en.m.wikipedia.org/wiki/Glazer_ownership_of_Manchester_United
Depends what the proceeds from it go to, seemingly he’s just putting it straight back in given how much debt is increasing YoY
Usually because owners aren't borrowing from financial institutions. Acun is just passing on the rate he's being charged.
For sure he's just borrowing against his company which means it isn't sustainable long term, but what is long term - 5 years, 10 years? Hard to know how long his line of credit is. And as long as we keep selling players every second year I think we'll be ok in terms of PSR. It's why I think it makes sense he's looking for further investment to take the club to the next level, but the bed wetting about us being essentially broke or him looking to sell the club looks to be rubbish.
