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hackneyfox

This loan

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1 hour ago, mancunianfox said:

I think this is the right move, the club have tried investing in the playing squad with little results. An expanded stadium and a better training ground would set the club up to be in the top league long term.

 

The biggest issue is that the loan tied into the TV money makes it vital that we stay in the league for the next two seasons. Relegation could be disastrous! It does worry me that the desire for safety without risk is at odds with the win now mentality amongst the supporters which I can see causing problems.

I could very well be wrong but isn't that why the parachute payments for relegated clubs was introduced. 

 

I'm sure it's two seasons were you still get enhanced tv money after dropping down a league. Surely they would just about be enough to cover us in worst case scenario?

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3 minutes ago, Foxy_Bear said:

I could very well be wrong but isn't that why the parachute payments for relegated clubs was introduced. 

 

I'm sure it's two seasons were you still get enhanced tv money after dropping down a league. Surely they would just about be enough to cover us in worst case scenario?

It's about 90M spread over 3 seasons

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This just looks like a Development Loan which is standard for most big projects like this.  In today's climate (and with our clubs chequered reputation) you'll be hard pressed to find a Main Contractor who will start work on a £100m scheme without some robust proof that the cash is there.

 

The fact that it's secured against the season prize money from the Prem is most likely because the club itself doesn't own many assets as KP Holdings owns the ground etc. a Bank isn't going to cut us a cheque for a £100m unless they've got something to call in if they decide not to pay up when the payments become due. 

 

 

 

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2 hours ago, Bristol fox .... said:

Possible £100 million on stadium expansion? WOW!! the whole stadium only cost £35 million. Thats gonna be some expansion.  Exciting times ahead :frantics:

The loan is for the training ground and probably expansion as well, the expansion will be nowhere near that amount.

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1 hour ago, Stadt said:

The loan is for the training ground and probably expansion as well, the expansion will be nowhere near that amount.

According to the mercury its a £100 million for training facility with a similar investment for ground expansion?...........

 

The club’s new training headquartersin Seagrave could potentially cost £100million, while a similarly grand investment will be needed to expand the King Power Stadium, with plans to develop Filbert Way in their initial stages.

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Just now, Bristol fox .... said:

According to the mercury its a £100 million for training facility with a similar investment for ground expansion?...........

 

The club’s new training headquartersin Seagrave could potentially cost £100million, while a similarly grand investment will be needed to expand the King Power Stadium, with plans to develop Filbert Way in their initial stages.

That’s conjecture, nobody at the Mercury will be clued up enough or have contacts at the club to know that. If we were spending that much on expansion we’d build a new ground instead 

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  • 4 months later...

The loan means nowt. It’s a cheap way of borrowing money and evidencing FFP separatism. The truth of it is 90 million quid in King Powers bank account for the period of building time will earn more than the cost of the loan repayments which are offset against footballing matters for risk and insurance purposes alone.

 

Keep calm and carry on. It’s big business.

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As has been said, this is how I expected us to pay for the training ground and is perfectly normal. Did people think we’d pay for a £100m project upfront in cash?

 

It should however make it clear to some of our fans that, contrary to their belief, King Power is not “paying for” the club’s new infrastructure. 

 

It’s always been the case that the club is paying for it via a bank loan, which I’m turn will have to be repaid using future revenues, most of which comes from TV. 

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Shade that's a lot of house .

Money is cheap at present and has been for a while compared to years ago but the recent stuff Ive been involved in have involved some serious 'fees' for the lenders on top of the basic rate.Low interest rates are key to a good economy

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12 hours ago, urban.spaceman said:

 

It shows the loan been paid, but the guy is just speculating that we used the TV money to pay it, I think whats quite possible is after king power won the airport contracts they simply sent some cash over to pay it now king power's next 10 year's is assured.

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11 hours ago, Swan Lesta said:

The loan means nowt. It’s a cheap way of borrowing money and evidencing FFP separatism. The truth of it is 90 million quid in King Powers bank account for the period of building time will earn more than the cost of the loan repayments which are offset against footballing matters for risk and insurance purposes alone.

 

Keep calm and carry on. It’s big business.

Well borrowing to keep money in an account usually isnt profitable unless you get a 0% deal or near 0% deal.  Its good to keep cashflow available of course.

 

I think what is much more likely is the combination of vichai's death and the airport situation for king power meant the club had a temporary cashflow problem, got the loan, and now the cashflow is resolved, said loan is paid off.

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I still can't quite work out the rationale.

 

We've had this season's TV money back in January. Presumably that was spent on something - training ground?/- or at least needed for something (otherwise why cash it in?)

 

So what money will fund any summer transfers and the running costs for this season? 

 

Ditto Mahrez money. We've long since cashed that in..Man City are paying their instalments direct to the bank.

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1 hour ago, Paninistickers said:

I still can't quite work out the rationale.

 

We've had this season's TV money back in January. Presumably that was spent on something - training ground?/- or at least needed for something (otherwise why cash it in?)

 

So what money will fund any summer transfers and the running costs for this season? 

 

Ditto Mahrez money. We've long since cashed that in..Man City are paying their instalments direct to the bank.

TV money isn't the only money the club produces. There's money for league finish, sponsorships and other incomes. It's not like we're broke. 

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