Wednesday in debt

[Guest mkowl]

36 minutes ago, HirstWhoScoredIt said:

L

 

Close have acquired a fixed charge mortgage over our training ground.

 

 

Not correct in that it is specifically charged against the assets detailed in the schedule that are located at the training ground NOT a full charge over the training ground

 

the letter would be going back to the Coop days 

Edited April 26, 2018 by mkowl

[Hookowl]

59 minutes ago, dan1980 said:

How much is it for because i might aswell be reading chinese

 

It doesn't give a value just lists the invoice numbers.

[Guest mkowl]

1 hour ago, heppers said:

 

It definitely relates to Modular Buildings.

 

The mention of invoices is due to the buildings and additions being detailed in those invoices stated so they know which assets they are funding.

 

Most sensible businesses will finance assets over the life of that asset.

 

A good spot but a non story. We are investing in improvements - fantastic news!!

 

Good stuff thanks for your insight.

 

Not seen that type of arrangement in real life amongst my client base - well not recently anyhow. As I say the reference to the invoices just threw me but I can see how that is the proof needed in this case to identify the very specific assets that are being financed

 

I do see it as evidence that there isn't a bottomless pot of money though and that perhaps since has come on board more normal business arrangements are being instigated  

[steelowl]

1 hour ago, HirstWhoScoredIt said:

Looked at this and the comments and I would comment as follows:-

 

Close have acquired a fixed charge mortgage over our training ground.

 

There is absolutely no merit to people suggesting it has been done for tax reasons.  We are a football club and will therefore never earn sufficient profit over and above the accumulated and allowable losses to ever pay any tax.

 

There is also no merit on people saying it is for FFP.  To my knowledge, spending on FFP has absolutely no bearing.

 

Therefore the following are the only plausible explanations that I can think of:-

 

1. We are short of cash so we have raised cash against the training ground.

 

2. We have spent on infrastructure on the training ground and have raised some or all of the cash via a mortgage.

 

Either way, it suggests Chansiri cannot or does not want to put more cash in.

 

This is also consistent with our season ticket policy - as I have said repeatedly to fans that insist on sticking their fingers in their ears.

 

The Same fans that consistently told me to shut up when I stated that we only had a finite window in which we needed to get promoted in due to FFP and the fact the Chairman ain’t a billionaire.

 

I suspect the financial reality of the next few years will surprise many of our fans.

 

Banging your head against blind hope mate.  

The same people who criticised then, just can't accept there is no evidence of mega wealth needed to compete with the unfaily parachuted clubs whatsoever - anywhere ( still waiting 2 years on of asking to be educated)

He's obviously got considerable wealth though to be able to risk 150 million (by his own reckoning ) on a football club with almost certainly a further fair wedge to find every year to keep us afloat, that's without any expenditure on new players, which itself is dependent on what sanctions are heading our way due to presumably falling foul of P&S. 

[adelphi1867]

Ah!, the dark arts of accountancy.

It's an alien language to most people, might as well talk Latin or gibbersish.

[fred mciver]

While I'm a big DC critic, don't think this is much to worry about - although charge is floating over whole club, not just training ground.

 

Maybe a transparency thing for FFP to show money invested in Middlewood, as opposed to team.

 

Might also be financial gymnastics.  So, raise dosh from Close Bros via leasing and count as income to off set FFP.  

[Mr Farrell]

The only thing that concerns me is wastage.

 

Our flawed transfer policy has spunked cash.

 

Positive noises coming from Jos that we've learned our lessons.

 

Just unfortunate it's cost 30 million to learn them.

 

Onwards and upwards.

[vulva]

Would imagine the interest rate is high for a mortgage on a portacabin. 

[Costello 77]

Loans are geared in different ways... with different lenders.

 

The only reason I've had loan arrangements in my business is when cash flow has been an issue.

 

That's because I've been undercapitalised.

[Lichfield alien]

I reckon we haven't got a pot to pis5 in

[oldishowl]

The whole thing is double Dutch to me ( nowt to do with Jos) but I do think for the first time since DC took over we have somebody looking after the details of the club ie our new CEO who

1 know what they are doing and

2 has some influence over DC

 

Not sure he listened to anybody but Carlos and Doyen before 

[BRADDO]

Here's a suggestion. 

 

We're skint. 

[SiJ]

57 minutes ago, Lichfield alien said:

I reckon we haven't got a pot to pis5 in

 

29 minutes ago, BRADDO said:

Here's a suggestion. 

 

We're skint. 

Are you basing this on sound analysis or just scaremongering? 

[BRADDO]

9 minutes ago, SiJ said:

 

Are you basing this on sound analysis or just scaremongering? 

Do you think we have lots of money to spend SiJ?

[SiJ]

3 minutes ago, BRADDO said:

Do you think we have lots of money to spend SiJ?

I don't honestly know and i dont think you do. Besides, not having lots of money to spend is pretty different to being skint. 

 

Go through this thread and the majority seem to think this isn't a big issue. You then have a few of the usual lot deciding this is a sign of our impending financial oblivion.

 

Needless to say, I highly doubt your assertion that the club is skint and on the brink of going out of business is based on anything more than a typically pessimistic outlook. By all means feel free to provide some actual analysis as to why you think this though. 

[trumbullowl]

The club makes a whopping loss every year. The only reason it doesn't go out of business is that the owner is willing to spend the money

to keep it going. Hopefully for as long as it takes to get to the Prem.

[@owlstalk]

7 hours ago, BRADDO said:

Here's a suggestion. 

 

We're skint. 

 

 

Nahhhhhhh

 

 

[heppers]

There are some right fannies on here.

 

Club invests in training facilities.

 

We have the best squad for 20 years

 

4th in the form table

 

Play offs 2 out last 3 years

 

Summer to build and improve with a great manager.

 

Knicker elastic twanging over a loan from Close.

[Guest mkowl]

I wouldn't say knickers twisting more intrigue. If this counts as expenditure outside of FFP why would you take a finance option if we are generally told it's the FFP limitations that stop funds going in.

 

No one pays interest voluntarily, no one takes charges against assets unless there is no option.

 

It may mean nothing - hopefully - it could be a first step towards a more general leveraging against assets - and that would be concerning. I Don't apologise given our history of getting a tad nervous at the first sign of security being lodged against assets however minor this currently is

[daveyboy66]

16 minutes ago, mkowl said:

I wouldn't say knickers twisting more intrigue. If this counts as expenditure outside of FFP why would you take a finance option if we are generally told it's the FFP limitations that stop funds going in.

 

No one pays interest voluntarily, no one takes charges against assets unless there is no option.

 

It may mean nothing - hopefully - it could be a first step towards a more general leveraging against assets - and that would be concerning. I Don't apologise given our history of getting a tad nervous at the first sign of security being lodged against assets however minor this currently is

I thought spending on infrastructure doesn't come under FFP hence the Scoreboard and pitch not counting