Wot no binners?

Lots of large FTSE companies have big debts as a % of their turnover and income. It all depends on whether the debt is manageable and sustainable. Unlike the huge debts that Labour saddled this country with but that's another story!

 

What debt we have to delia is now minimal, 5-10m, interest free, and if she asked for it we can easily pay it back now. You owe 80m, at a whopping 8% interest, and with annual loses of 16m you couldnt pay 50p of it off!

If ME loves ITFC so much, why is he charging you an exhorbitant 8% interest per annum? In one years interest alone thats more that we owe delia in entirety.

 

It's all internal debt so in other words he owes it to himself! When you say 'you' who do you actually mean? He knows he wont get a penny of it back until we get to the Premiership and he wont pull the plug unless he is sure to get his money back!

 

I can understand why you'd charge interest, as how else would he make a profit? He's involved as a business interest, rather than a fan putting cash in. What would concern me is the effect it will have when financial fair play comes in. Surely having to service the debts is going to take away from another aspect of the clubs expenditure, and under the new rules, Evans can't just stick more cash in. Therefore won't the interest payments reduce your transfer budget?

You could argue that he's simply making hay whilst the Sun shines, and he'll stop charging interest when FFP arrives. But it would still concern me, as I've never seen any indication that that's a long term plan.

 

not read all of this thread but i can at least confirm the amounts owed to directors at norwich city football club:

delia smith and michael wynn jones are owed £2.1m – this amount was offered to the couple last summer and they turned it down.
michael foulger is owed £1.4m – this amount IS due to be paid this summer but again, the individual may wish to refuse it.
two other 'unnamed' shareholders are owed around £600k in total – i do not know if this amount is due or indeed will ever be called for.

so worst case scenario the internal debt sits at £4.1m. all debts owed are 'interest free' but i can't confirm this is the case for the two unnamed ones

hope that helps.

 

Oh my goodness! Can you imagine if we owed Delia 80m and we were paying interest on top of that and Ipswich owed their directors less than 10m with n interest? The binners would NEVER let us hear the end of it!

 

it would be constant. Binners seem to be burying their heads in the sand on this one. I think there was even the suggestion that we were jealous of their debt!

 

I couldn't really give a monkey's but it's you lot that constantly bang on about it!

 

Yet you're banging on about our piddly debt!

 

Jonny Howson's goal on Sunday ensuring an 11th place finish has just cleared our remaining debt then !

Money, money, money, must be funny, it's a rich football club's world !

 

Apart from paying off gangsters and loan sharks for a certain players gambling debts, didn't you owe the St Johns ambulance some money at one point?

 

So you would rather another human being be assaulted than helping them out?

As for the St Johns ambulance thingy, can't see how thats relevant as its history, and we know how you don't like banging on about history.......................................Oh wait a minute thats in your favour so its ok!

 

I'd rather a stupid well paid twat was made to clear his own mess up. How do people learn if it's not through sorting their own mistakes out

 

That logic should appeal to Warky,Stand on your own two feet,blah,blah,blah...

 

I can see that its his mess and he should clear it up, but we are talking (or should i say Northampton) are talking about somebody who would do physical harm to another person. Are you seriously condoning that?

Also Chopra, is paying back the money through his wages.

That said i think he is a twat for getting in the situation in the first place.

 

Without (hopefully) getting into too much of an argument Rich, I can't say I fully agree with you.

I tend to be of the opinion that it's generally more beneficial for society if people with serious addictions/dependencies are supported rather than left to fend for themselves.

 

Or better still, not be so twatish in the first place!

 

JK I agree with you totally! I didn't mean don't help him at all, far from it ALL vulnerable members of society must be protected and help offered to them BUT no way should his employer have paid his debt off for him all that teaches is oh if I get into trouble someone will bail me out

 

This thread is producing a lot of circular arguments.

Bottom line is that currently Norwich are cash rich and have a significant guaranteed income stream which will allow us to invest in the squad and stadium in the short to medium term to retain PL status and keep the virtuous cycle running. After that who knows. We could have one shocker of a season and end up in the Championship struggling with the rest albeit with a much healthier balance sheet and stronger squad than our rivals. Sky could pull the plug and everyone in the PL will need to cut their cloth accordingly.

Currently Ipswich are skint with no significant income stream and load of debt but balanced against which they have a manager who has a record of taking teams up and a stadium with a decent capacity to allow more fans to come should their team ever merit it. The way the Sky money is at the minute IF Ipswich were to get promoted for just one season the PL prize money plus parachute payments would see off a fair chuink of ME's debt if he chose to utilise it that way. ME is obviously gambling that they will get a promotion and this will, at a stroke massivley improve their current financial situation.

Only a fool would even debate who is in the better current financial position but equally we only have to look back five or so years and we were heading for League 1 and almost went bust and most sane NCFC fans would have considered ITFC's financial position the better option.

For clubs like Norwich and Ipswich football is cyclical but recently the swings have become more exaggerated as the Sky money has increased the gap between the haves and have nots and a lot of clubs have gone to the wall racking up debt chasing the dream.

As Dave said only time will tell if we can establish ourselves in the Prem or if Ipswich can get promoted before ME runs out of money or patience. If you went to the bookies I know who'd currently have the better odds for success but sometimes the outsider comes good.

 

Fair point mate. However, if the employer paying off his debts enables him to have a better opportunity at seeking further support (with the proviso of paying money back to the employer), I think it's not necessarily such a terrible thing.