Yes I know that.. I very much doubt we're in any sort of trouble as the club seems to be in safe hands. I'd rather we were very cautious though considering what's happened in the past.
Having a net worth over 3 billion does not mean you have 3 billion cash in hand. Look at it from the other perspective. Why would someone loan you money if they didn't think you could pay it back? That's why there are banks and people who make a living off figuring out who to lend money to. I would be concerned if Saints tried to get a loan and were turned down, because that would mean there is doubt in some circles that Saints can pay it back. But just the fact that they took out a loan means nothing. Some business obviously thinks that not only will they get their loan back, but they'll get it with interest. That business seems to know what they are doing and has some experience in this area as they lent money to Everton last year and Everton paid them back. Maybe that business is wrong. Maybe not. We have no way of knowing, so there's no reason to get gloomy over what is a fact of life of doing business. No matter how big your business is or how much it is worth, you will take out loans or you are not maximizing your assets.
Well it's important to find a middle ground between being overly cautious and overly ambitious. Both can get a club into trouble. My theory on this loan is that we probably didn't have £30m just sitting around to spend on transfers. It was probably to help a bit with the Ramirez payments. It doesn't mean we're in any sort of trouble, it just means we don't have the throwing around money that Man City and Chelsea do.
Also just remember people since the Liebherrs took over we have had a very large Wage bill, 93 Percent of our turn over in fact in league one, not too dissimiliar to figures Po**ey were cherning out.
That was in league one. We must have a fairly similar wage bill, and we have the income of a premier league team...
You are all speculating again aren't you........Just ask yourself one question.........When you have gone to borrow an amount of money you have to prove do you not how you are going to pay it back. Now you don't normally borrow money, usually, for money spent do you? You usually borrow for something you wish to spend it on. You have to have a business plan to prove what you are going to use the money on. Here the speculation starts and should really finish....because we just do not know. It is of course cheaper to borrow money over a length of time with a planned payback cycle as against say an overdraft. Cortese is a banker he will know the best ways of obtaining cheap money and moving it around. So in that at least as he was very successful before he came here. It is reasonable to assume he has not lost those skills so why the worry there is not a club in the two top leagues that do not borrow money. Just remember the big teams have all got wealthy owners who have to give guarantees to the banks as they will not get the loans. So presumably the Family have given those guarantees for this loan. For me it is most likely the mortgage on the new premises and ground at stapleford.....Now who hasn't got a mortgage in the property market. We just don't know we just know our wealthy owners have decided to take a mortgage......
Moreover, we have some idea how that wage bill was paid. The Leibherrs put their personal money into the club in the form of a "loan." With their money, they could have paid five times the wages and not put a dent in their personal fortunes. And now they have converted that loan to shares and so it is off the books and thus no longer an operational concern.
I find that figure hard to believe, we had a couple of hefty wages like Lallana and Lambert who were around 20,000 pounds, but we were having gates of around 20,000.NA could not run the club with such a high wage bill. Another reason for getting a loan is simple cash flow, alot of business are profitable but need bailing out with a cash injection to pays all the stupid little things.
Markus said we would never need to borrow from a bank again, but sadly he isn't here. The Leihberr money is nothing to do with us. The loan seems to be a short term loan to aid cashflow. The fact that it is with a company in a tax haven is irrelevant, so don't know why people are trying to make anything out of that. Don't see why the building stopped over details as Sibley says...sounds more like a spat between Cortese and the contractors. None of us know anything about it so can't speculate on right or wrongs. Only thing that really matters to me is the match on Sunday.
I think people labelling persons stupid simply for having an opinion when they disagree with their opinion is inherently facist and intolerant , it always makes them see small/closed minded .
Thats not necessarily the case Beddy , the sub prime mortage market in the US is what has led us to this World recession , also some banks have been lent money and then have been bailed out or gone bankrupt altogether , Northern Rock , RBS and Fannie Mae .
The company that employ me are profitable. We are undertaking a lot of capital expenditure this financial this year and are doing this partly though finance packages and loans. Should I be worried about my job?
This is all hearsay, and I have no more insider knowledge than any of you, that is, none at all. I remember NC saying that he would run Saints on a proper business footing, so why would we expect the family to provide funds for everything? I am happy that we are putting the investment into the infrastructure and the squad to make us more successful. SFC is a business, and every business borrows money. Why should that worry us? Those of a nervous disposition are entitled to ask a question about it of course, and even though I disagree with anyone who sees this as worrying, there really is no need to be abusive. These Positives vs Negatives exchanges are becoming so tedious to wade through. Can't we just put a sock in it, and use the ignore function?
