I don't care what anyone says this is bad news, more so because the deal was done a while back and TF has been silent about it. Taken in conjunction with the huge losses being made this season, relegation just prior to the massive increase in PL payments and the start of football's break-even policy we could be in for some very choppy times. It could be **** or bust next season I fear.
Bloody hell any idea how much rents are in West London? Affordable housing is considered low at £950 .... That's a week by the way
As it's taken out my post in the quote I'm going to have to give a few options because I can't tell which part (or even which post) you're questioning so I'm going to guess. Rental income for the stadium is an entirely different thing to rental for housing, so if you were picking up on the question about rental income the price of house rentals is irrelevent. If it were being turned into housing, on a site that size a developer is likely to be one that would be looking to sell and not rent the properties. Bizarrely the rental and sales values of property are almost completely unrelated. Since I bought my place for example the sale value has fallen by about 1/6, but the potential rental income has gone up about 50%.
It's not uncommon for businesses looking to expand to take loans, if the project is the training facility, they may be able to offset some of the loan interest payments as if they set up a new company for the training say QPRTF Ltd then that company with only two or three shareholders would be a "close company" under tax rules and interest non-taxable. Therefore there is a tax benefit by taking on a relatively small loan as long as it meets certain criteria. I don't know if this is the actual case, but it would seem plausible.
Don't forget also that repayments on a business loan becomes tax deductible. Simply a tax efficient way of using the Bank's money while your own money is busy making more money for you too. That's the way I see it anyway.
Worried? No way. Concerned? Not a bit of it. When have bankers and accountants ever got things wrong? Pffftt. I sleep easily.
Oh, this as well, my previous posts were specifically about the security behind the loan and explaining the different ways the personal guarantees could be provided even if the ground is what it's secured against.
If it walks like a duck and talks like a duck, let's just assume its a duck....... it's easier all round. They're putting debt directly onto the club, for the first time that I'm aware of. No, this does not sit well with me without an explanation that has some credibility.
It's not the first time. There's stacks of debt on the club that's all repayable to them. If they sell up that debt will still need to be settled.
"However, with QPR approximately £90m in debt due to the significant loans paid in by Fernandes and his partners during the 2011-12 financial year, totalling £55m, and the Mittal family, who lent £27m, supporters may be concerned at the shift in approach." To this needs to be added any additional loans they may have made in 12/13 - though that may be what this 15m is about if some parties have decided that they want any extra loans to be tied directly to the business and its assets first rather than exclusively to them personally.
I may have been naive here but I thought these guys were bearing the hit....I was naive. We're xxcked then.
Ok this: That I believe shows the same figures that were in your last published accounts. It doesn't matter whether it's the owners making the loans to the club from their own money, or a bank making it to the club. They're all debts that the club is carrying, and if the current owners sell the club they'll all need to be settled one way or another by the new owners. Fernandes, Mittal and co aren't going to just leave £90M+ in debt with the club and tell the new owners not to worry about it, it's going to need settling in some way. The new owners will either need to put money in to repay it, or the club will need to borrow from a bank or other financial group to replace the debt. Similarly the bank loan they've just taken out, if the owners have put personal guarantees on it then that will also need settling when they sell the club, either the new owner takes the guarantees over or the debt has to be repaid there and then. Ask yourself, would you guarantee a loan for a business you owned, and then sell the business to someone else and leave yourself liable for a chunk of debt if they managed to screw your company up? Now would probably be a good time to mention that I'm an accounting and corporate finance student with a particular interest in football finance (I'm even trying to find a way to make my dissertation be about the different FFP systems that are being introduced). Having said that all those debts need to be settled, it should be pointed out as well that them having put the money in in the form of loans is not a bad thing in itself. It's probably the most tax efficient way of doing it both for the club when the money goes in, and then for themselves when they take it back out to repay themselves. I for example have no worries about the £50-60M we currently owe our owners, as the only way they can ever take it back out again is by putting the club into a much better position than the one they found it in, and if they do that I'm happy for them to make money out of it.
Now would be a good time to mention that Tony and his mates personally guaranateed various loans, did I get this bit wrong? If I did get it wrong and the Club are liable for Tony's miscalculations, then quite frankly, we're xxcked.
Tony Fernandes Loan for QPR is for new stadium. Next 2 weeks will be hopefully good news. But work is starting. We will not say anymore on stadium
