It's exactly like an overdraft....
And here's how it can go wrong like an overdraft...
- Individual A loses their job and can no longer pay back overdraft, interest stacks up
- Club A loses premier league status and fails to regain it within one season, meaning loan cannot be repain and.... interest stacks up.
For seasons where we are in championship, loan is secured against parachute payment, this is fine as long as we are immediately promoted and receive big tv money again.
It all unravels if we spend more than a season at a time in the champ.