Jordan Sibley Tweeted Surprised to see a mountain being made out of a molehill regarding the pause in work at Staplewood. SFC and Leadbitter have agreed to pause process whilst details of a specific aspect of the specification is confirmed. Project will be resuming very soon and both parties are looking forward to the project being completed ahead of the 2013-14 season. Nothing to be concerned about at all! Straight from the horses head, sorry mouth.
Ok sensible hat on. Here's the thing. Nicola just spent £30 million on transfer fees and probably a considerable amount extra on other stuff to (not least Staplewood). You do not get a cheque for £30 million for finishing 2nd in the Championship. Now Nicola could go and ask the Liebherr family if he can borrow the cash for a year, but hey maybe they don't have a whole heap of cash sitting in a bank account, or perhaps it's just a bit too cheeky. So he borrows it from elsewhere, it only costs a million or two and he can pay it back when we get all that money at the end of the season, or however he likes really. If you are a club with large debts going on elsewhere, or a guy working in a supermarket on minimum wage, taking a loan against future earnings probably isn't very sensible. But for us, it's completely fine. Btw I have no idea how much has been borrowed, in fact no one seems to. In more interesting facts, the capital of the British Virgin Islands is called Road Town and has a population of 9,400. And when he was 21, Andre Villas Boas coached their national football team.
Totally agree, that's exactly what I'm saying. It's simply a question of timing. Being in the premiership is (apparently) worth about £100m. But you don't get that on day one. So we need finance to cover cash-flow especially as Bologna wouldn't accept a series of payments for Ramirez. And as I've already said, you definitely don't go back to the Leibherr trust for that sort of finance, they have have plenty of fish to fry and Cortese is supposed to be running this ship. If he can't sort out his own finance arrangements without needing more investment from the shareholders then he wouldn't bee he man to run this club. Oh - and let's not forget why we are debt free in the first place. It's because Cortese has already made the family a shedload of money, remember? http://www.dailyecho.co.uk/sport/saints/news/9618653.Saints_reveal_latest_financial_figures/
Actually taking a loan out now is the perfect time. Rates on loans are extremely low right now. In fact those with lots of money and smarts could take a loan and invest it elsewhere and make quite a bit of money. I'm sure NC is not investing it in stocks or anything but in SFC. In a few years when the rates go up it will be much more expensive to get a loan and pay the debt. NC is a money man. i have no doubt he knows what he is doing when comes to money.
What business *doesn't* take out loans on occasion? Sometimes there are immediate investment opportunities/needs in the short-term and fewer in the long-term. It would be foolish to pass up a great investment opportunity because of a short-term liquidity problem only to be sitting useless on a pile of cash later on. You can borrow foolishly (also known as "doing a Pompey"), or you can borrow wisely. Borrowing money in and of itself means nothing.
To be fair to the Island dwellers the "doing a pom*ey" is a biut of an urban myth , they actually sold their players on for huge profits , what screwed them was the ridiculous amounts of money for wages and signinig on fees , "doing a Leeds" is far more apt .
If the situation in the UK is anything like the situation here in North America, interest rates are damned low at the moment...the problem is getting a loan in the first place.
I am not refering to mortgages , criteria has tightened up but cheap money in general is not out there .
More and more certain this is just a normal business arrangement to ease a cash flow problem. We are in the PL with PL costs, but so far the only increase in our income is extra seats sold at a couple of matches. Apparently, this money is secured against our PL payment/parachute payments from 2013/2014 which tells us it is not a massive debt secured against SMS. Though they have the right to push us into administration (like any debtor), I can't see the Leihberrs allowing that to happen to an asset like SFC. If we keep up payments, the income from PL in 2013/4 is not even at risk. nb. the info about being secured on PL income comes from a poster on saints web who has seen document...not guaranteed true but he sounded certain.
I thought borrowing money was expensive at the moment...even better. Luckily, we are all fluent in gobbledygook.
I do gibberish, haven't graduated to gobbledygook yet. I was thinking in Terms of Foreign Exchange! They always quote buying and selling.
