Shortfall? Surely the ground has to be worth more than £15m, if not i think I'll put a bid in for it myself...
TIMK, Fernandes and partners and Mittal own all of the QPR, including the stadium, players contracts, training facilities etc etc 'QPR FC" is the public expression of this. If the partners agree they can sell Loftus Road at any time, resign from the league and have us starting again at the Scrubs. It all BELONGS to them - they didn't borrow to buy it, but are borrowing now hopefully to invest in it. In fact Tony owns Loftus Road in a much more real sense than he owns his aircraft, which he borrowed to buy and I guess still owes money on. Just heard that parachute payments are going up from 48 to 60 million over 4(?) years.
Pompey just un-ringed fenced theirs! But as flyer pointed out, it can be because of a low interest rate makes it worthwhile. Many businesses do that, even when they don't need to.
Pompey just un-ringed fenced theirs! But as flyer pointed out, it can be because of a low interest rate makes it worthwhile. Many businesses do that, even when they don't need to.
I'm not a businessman Ninesy. More of a Phil Beard I'm afraid, on a smaller scale (and with less people to disappoint!).
The ground is only worth money as a ground when there's a team to play in it. What would it be worth in rental income? Without a team to play in it it's worth what a developer is prepared to pay, which means less than value of the land as residential property. As well them needing to turn a profit after the development, there'd also be the costs involved in removing the stadium from the land. Leicester just bought their ground for £17M. Ok it's not London, but it's a more modern stadium on a bigger plot of land and they're not going to have any clearance costs as they're using it for it's current purpose.
Thank you SB - knew one of the wise business heads would clear it up. Basic business sense is to borrow when you can get a better return than interest paid. Smacks of new, shiny property to me.
Hi all Just been doing a bit of research into this and it seems that 'businessmen' seem to shift money from A to B and take out loans even when loaded? Although £15M must be peanuts to them it's easy cash at a low interest rate and can see it going into the Warren farm project. Don't worry as TF/Mittals are in this for the long term otherwise they wouldn't bother with Warren Farm and all the other stuff that goes into QPR? Yes you will get the usual 'Mittals off' comments but take them with a large pinch of salt. This season has been a disaster and they will want to put right. If we cannot trust our owners then something is very wrong. Look at it like I do, in that a meteor could hit the earth at anytime and whip us out but I will not worry until it does. The same goes with QPR, if we ever go broke then worry about it then because there is nothing we can do anyway. Enjoy the fact that we actually have a board that cares about our club. Have a good summer and I should be back (if we don't get hit by a meteor) in the new season.
Thanks for that SB. I'm certainly no accountant, but I guess my point would be that if a loan is taken out against a club's assets rather than the individual owners, then should those owners then decide to sell up it is perfectly possible for the club to be left to carry that debt itself. I believe that's exactly what happened when Bernie and Flavio took over and inherited that ABC loan debt from the previous owners. Let me make it clear that I don't for one moment think that that's going to happen. But it's possible, and we should have no illusion that the debt is the club's. Anyway, hopefully it's all good and is for investment in the foundations of the club (i.e. for training ground building, stadium etc). Whatever the details and background to this are then the sooner the club make a statement to clarify then the better IMO.
Thanks for that Ricardo. It would be terrible if it were to happen but I'm pretty confident that notwithstanding the cost of clearance and construction , a residential complex on a site that big in Central London would be worth a hell of a lot more than £15m (if it were allowed by the planners of course!). Can't see it happening anyway.
I am sick to death of QPR ... this does not look good at all IMO ...They could lay their hands on 15M and easily hide it ... Half of London and most premiership clubs I am betting do their finance this way... We know its a minefield by that i mean money ... it sends out the wrong messages for me. If this starts going sour then burn Loftus Road with a few locked inside IMO
The big difference between QPR and Pompey or similar is that your owners are uber-wealthy, whereas the string of owners that Pompey passed through were essentially cash and asset strippers. Your owners have made their money - why take a massive reputational hit just to make an unneeded few million here or there by acting like complete sharks? Much more likely to be a favourable debt deal. (Unlike the monstrously unfavourable debt deals at Manu, which really are the work of unscrupulous backers looking to make money)
i'm far more worried about how we're going to get Boswinga off the books at the end of the season. Maybe the cash is to buy out the rest of the oily turd's contract!
I have a feeling that this loan will be used to fund the recently approved training facilities. I've got a feeling that not all the shareholders want to fund this investment as they cant see themselves with the club for the foreseeable future, therefore they still want the development to go ahead but dont want to pay for it, so they are taking out a loan against the clubs assets. Seems perfectly logical and business like to me.
i think its probably tax reasons, it could be cheaper to get a loan from HK and pay that back than the owners inject money onto the club themselves which would count as income and tax would have to be paid. Say the choice is pay 10% tax on a cash injection or get a 5% loan.
