Think majedskii very similar philosophy. Theres someone here owns 60% of a herts club i wouldnt dream of asking where t'he cash comes from!
We are sceptical group. I agree that there is something wrong with the reducing of the telephone/radio interview to an internet chosen questions session and the answers are what was expected if we knew the questions. There is nothing in LBs answers you would argue with but they are sterile and general. Why should LB say where his money from none of us would talk about our money, the amount is bigger. I like the idea he sees an opportunity for a profit showing he wants to succeed.
Yes if asked if you would like one day to make money from an asset the only person to say no would be a liar or a fool. Itt would be naieve in the extreme for him to say how much money he has and its source- it just leaves us open to being ripped off. I can see ofh's argument that he is wanting to pay off the bonds to give himself a free hand but that will take his expenditure to £15million ish- hed be doing well to extract that from watford
Very good point - and the thing that is really puzzling me. In these credit squeezed times would you really want to pay off £8m of practically interest free loans?
The only reason that I can come up with to pay off the bonds relates to the terms that he agreed to. I cannot remember the exact figures, but wasn't he tied down to only using a percentage of incoming transfer income. He might see that as a hindrance to his plans, whatever they might be.
Eitherway he aint making a profit anytime soon. Ps the bonds are far from interest free-7.5% if memory serves
I don't see too much of a problem with the interview. I think his reason for owning the club is probably one of self-importance, to say 'look what I've done for you all'. I think his only mistakes so far is being bad at PR... aybe he just isn't a very good public speaker! As for the developments. It's a pretty natural timeline. Start with the smaller stuff and build up. It might be in that order as not to have too many costs in one go... and could be using the same contractors, so they do one the RL first, then move onto the SW Corner, and if their job is satisfactory, they get the contract for the East Stand! Maybe he is doing it all so it can be called the Bas Stand! (obviously a great PR stunt would be to get the opinion of the fans) As for profit, of course he will eventually want to see a profit, but he's realistic enough to know it won't be for a while, and he has to improve the infrastructure of the club to make it anywhere near profitable. I expect he sees money coming from non-matchday revenue once the east stand is open. The RL will never make a huge profit!
Probably the most worrying thing is that he is looking to pay the bonds off quickly. Even setting aside theories about what he might do when he has free reign, the question is where the money will come from to pay them (and if the answer is player sales, when).
I guess with the repaying of the bonds early, you will get either the positive reaction, or the conspiracy theorists! While some say it will be good to unburden outselves with debt, it does give him more of a free reign to do what he likes with any money coming in! Obviously it is a worry where his money is coming from, but I do think you just have to trust him on this. He doesn't really seem a 'master criminal'. Maybe just someone who has had some kind of windfall and is going through a mid-life crisis, and rather than buying a sports car, he's bought a sports team!
How is this worrying?? If they guy has the money available to get rid of the debt, why should he wait for years to do it? If you have a bill to pay and have the money to pay it would you wait as long as possible to pay it? Or would you pay it off at the first possible convenience? You would of course be a little bit silly not to pay it back early.
Interest Accrual Each Note bears interest on its outstanding principal amount from the Interest Commencement Date at the Relevant Rate of Interest. For the avoidance of doubt, no interest shall be payable in respect of the period from and including the Issue Date to but excluding the Interest Commencement Date. Interest shall be payable in arrears on: (i) the First Interest Payment Date in respect of the period from the Interest Commencement Date to the First Interest Payment Date provided that if all outstanding Notes are redeemed or purchased and cancelled prior to the First Interest Payment Date, no interest shall accrue and be payable in respect of the Notes; and (ii) each Quarterly Interest Payment Date, in respect of the period thereafter in each case, subject as provided in Condition 6 (Payments). The amount of interest payable on the First Interest Payment Date in respect of each £1,000 in principal amount of Notes shall be £50 (subject to the proviso in sub-paragraph (i) above) and the amount of interest payable on each Quarterly Interest Payment Date in respect of each £1,000 in principal amount of Notes shall be £7.50. If interest is required to be paid in respect of a Note on any other date, it shall be calculated on the basis of a year of 365 days and the actual number of days elapsed and shall accrue from day to day. So - 5% for the first year, then 4 x 0.75% thereafter, ie 3% PA. I wouldn't be in a hurry to erase that line of credit except that if he can pay off the whole lot by March 12 he won't have to pay the 5% of the first year- which is around £500,000 - so worth doing if he has surplus cash. And if he has, we have seriously underestimated his wherewithall.
You've missed my point. The worry is how he will pay for it. As Harrow says, if it's from his own pockets then perhaps we have underestimated his means. On the other hand, if it's capital from player sales (or to put it another way, if the timing of player sales is influenced by a desire to pay the bonds quickly), survival this season might not be as likely as it looks.
