Even a moderate amount of cash put in the bank will give you 2% interest. Imagine how much they will give for say 50 million deposited. If you want to borrow a moderate amount the bank will be adding around 4% interest. Imagine how much they would want to give you a loan of 50 million.
In our last financial reports.... Director loans on our books = £78,420,225 Interest paid last year = £2,629,945 (around 3.5%) Our total liabilities is = £111,226,089 Our Company Net worth was: minus £90,296,794 This is why we don't have a cat in hells chance of being sold IMO. It's last chance saloon time for the Allams to get their money back, they need promotion this season.
3.5% is reasonable, 5% is not, I therefore withdraw my previous comments about usury and freely apologise to anyone offended
I'm more bothered about their salary actually. The last accounts showed that they awarded themselves a big rise in 'management fees'. No relegation clause for them.
The biggest problem for them is it is unsecured. The biggest problem for us if they see selling players as the best way of recovering as much as possible.
2013 accounts - Total liabilities £98.4m 2014 accounts - Total liabilities £99.5m 2015 accounts - Total liabilities £111.2m
The problem with our books is all the director loans (which were moved in the last accounts from an inter group loan to a director loan) have been listed as current liabilities, i.e. amounts to be normally repaid within 12 months. Technically only long term liabilities (to be repaid over 12 months) are long term debt. It is very tricky applying normal accounting practices to football clubs finances, hence the decision to list the figures from the total liabilities column. Either way it's not good reading. More telling is the figure of £25m loss last time we were in the Championship, so no wonder the players were allegedley offered a £5m bonus to get promotion this season. (We made around £20m profit combined in the two years in Prem).
Debt is debt, it's a fixed amount owed to another party. Liabilities include payments due for many things that are simply part of the day to day running of a business, liabilities in themselves tell you little about the state of a business.
Quite true, but of the £107m current liabilities, £78.4m of that is a loan, so approx 75% of our liabilities is debt. The difference comprises mainly of £18m due to current trade creditors, and some other smaller categories.
