You're kinda missing the point of what i'm saying. i haven't said that KP are splashing the cash or otherwise - although i have asked whether thats ever actually been confirmed. I've simply said that you (and others) are putting way too much emphasis on the development facility in the grand scheme of things in regards to King Power's long term investment in the club. it's a means to an end and doesnt really reflect how much money KP are going to put in to the club.
If you want to look at it simplistically, yes, we borrow money and have to pay it back at a later date but thats the same in regards to any loan. What this is, is a development facility (and also happens to be my day job!). Think of it as a self build mortgage. when you take out a SBM, you agree the amount (the build cost + a possible advance on any land value + any fees the bank charges + the amount of interest they are likely to accrue during the term), the stages in which they'll hand you the money (i.e. as the project progresses, they'll give you the money to pay for it), the term - maybe its 35 years for your mortgage, and as part of the banks due diligence, the bank want to make sure that you/your other half earn enough to cover your monthly payments which when all added up over the course of the term, will have paid everything back. Your wage in this example, is the clubs TV monies, the amount is apparently £100m and the term is 2 years. Development Finance is more expensive in terms of interest and fees than usual borrowing (sometimes upwards of 12-15%). So if the club has a longer term, they need need to factor in a larger interest roll up, which means higher fees (these are usually linked to overall facility amount) so its sensible to keep the term short (but not too short that it isn't built by the end). Once the training ground is completed, the club have 2 options:
A. refinance on to a commercial mortgage (you'd struggle to get a long term mortgage on a project that hasn't yet been built so it has to be done this way) moving the debt from the current lender, to another cheaper more long term option. effectively remortgaging your house to a different lender.
B. Pay the bank back with cold hard cash in the form of sold players or TV revenue as outlined in the agreement.
Crucially, the banks are not bothered where the money comes from - so long as they get their money, fees, and interest they couldn't care less where it comes from - they've made their money. Most importantly, if the club do nothing, then the bank can AND WILL exercise their charge over our prize money as outlined in the agreement. This is like the caveat on your mortgage application that says "failure to keep up with repayments may result in your house being repossessed". to the bank, our premier league earnings are much better to hold as security than the asset of the training ground as its cash - sat there waiting.
If you want to see this in action, go take a look at ANY of the development projects happening in London/Birmingham/Manchester right now - almost every single one of them will be funded in this way regardless of how much money the parent company has in their bank account. It's a means to fund a development - nothing more. If it has a 2 year term, thats how long the club and the Main Contractor expect it to take to complete the project to Practical Completion.
The problem is that you are looking at this as if you were to nip down to Wonga and borrow some cash to buy a TV, when in reality it's just not the same. The procurement of development finance, and commercial/construction finance in general is a completely different kettle of fish. They are lending money against a construction project, which will be drawn down from the bank as and when the contractor makes their interim applications for payment.
I'm simply saying that King Power's willingness to pump cash in to the club, and the development facility are mutually exclusive. Just because one is in place, it doesn't necessarily mean anything in relation to the other.