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Discussion in 'Liverpool' started by Hash., Apr 22, 2021.

  1. Tobes

    Tobes Warden
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    The good news is, that it looks like they’ve 3rd party borrowed the operating losses and lobbed the debt onto your balance sheet to be repaid over however many years.
     
    #21
  2. Jimmy Squarefoot

    Jimmy Squarefoot Well-Known Member

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    The Athletic had mentioned that whilst borrowing was up massively, it has also been largely paid off this year.
     
    #22
  3. Zanjinho

    Zanjinho Boom!
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    How? No fans means all clubs are down in income. How as the debt they clearly took out as a precaution towards the pandemic been paid off during said pandemic?
     
    #23
  4. Jimmy Squarefoot

    Jimmy Squarefoot Well-Known Member

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    Not sure mate but this is an extract from the article:

     
    #24
  5. Zanjinho

    Zanjinho Boom!
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    A significant chunk? So they could have paid just £10m of it. Or maybe they borrowed more than they needed too? Seems dodgy to me either way
     
    #25
  6. johnsonsbaby

    johnsonsbaby Well-Known Member

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    Some good news. Remember the Nike deal £30m as opposed to NB £45m? Well with the 20% merchandising royalty, we've made an estimated £70m.
     
    #26
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  7. Sucky

    Sucky peoples champ & forum saviour

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    Was always going to be a better deal for us that. That's a fair chunk of dosh like. That's in less than a year right?
     
    #27
    Last edited: Apr 28, 2021
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  8. johnsonsbaby

    johnsonsbaby Well-Known Member

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    Don't know mate, I took it from the Swiss Ramble. He's reviewed our accounts and put it on Twitter earlier today.
     
    #28
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  9. Prince Knut

    Prince Knut GC Thread Terminator

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    Good for whom? I suppose with FFP being on its death bed in a vegetive state it's not as important as it was to have crushing debt, but we saw from H&G what can happen if FSG can't pay it. Then again, as Tel keeps saying about United's humungous debts, the worst-case scenario is that the Glazers get so far in they have to sell. That's not such a bad worst-case scenario I suppose - IF you believe some sugar-daddy is waiting in the wings.

    Personally, I'd just settle for another DIC to come along. Not sugar-daddies, but bankrolled by an enormously rich state, so that whatever happens you'd be safe. Then again, what happens if none of these options are available and another set of US vulture capitalists are waiting in anticipation? I dunno, but I just think FSG were put to the test over the pandemic, and they didn't adapt, just as Jurgen has been unable to adapt his strategy to emergent realities. Remains to be seen if he wants to take another five years to build a side again, or even if he did get a shedload of money thrown at him he'd want to do it that way. Remember, he turned down the United job because they were all about money.

    A difficult decision needs to be made there - does he really think it'll all go back to 'normal' when Virgil returns, and that we'll be City's main rivals: or is he prepared to stay and rebuild? I think next season, without CL, will be telling, especially if we are intending to go deeply into the market -unlikely. Who'd come to us knowing there's no CL?
     
    #29
  10. Tobes

    Tobes Warden
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    I was being sarcastic mate. I’ve since read the actual accounts and the debt position isn’t as black and white as it appeared from the headline number. They’ve put in place a £200m loan facility that can be drawn down and repaid as required and is in place until 2025. It appears that for some reason they drew down the full amount towards the end of 19/20 financial year, which shows the net debt increase of circa £150m. However, in the accounts notes the bulk of this increase was sat in cash at hand at the year end. So it appears if was probably preemptive due to the circumstances at the time, and that cash will have been largely consumed to cover the shortfall in turnover during the 20/21 financial year. What they choose to do with that debt long term won’t become clear until the 20/21 accounts are released. As it stands it’s due for repayment or restructure in 2025.
     
    #30
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