What's new

Club Finances - Swiss Ramble

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
I understand what he’s saying but ignoring debt is the wrong terminology. We still have debt payments to make every year. It’s just that they will be smaller as its repayable in 30 years now instead of 5

Agree, but if the interest is as low as 2%, that is less than inflation.
 

RichieS

Well-Known Member
Dec 23, 2004
11,916
16,436
Is it 400 or 600. Press reports said 400m by Bank of America.
I think there's some confusion around that because the club extended its "credit limit" (for want of a better phrase) to £637m when the stadium build faltered. I don't think the whole amount was ever used though.
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
I think there's some confusion around that because the club extended its "credit limit" (for want of a better phrase) to £637m when the stadium build faltered. I don't think the whole amount was ever used though.

Levy said in the supporters trust meeting in march that our debt was £637m.
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
From the trust minutes:

Plans for remaining competitive on field?
  • MG asked whether the amount for transfers was shrinking given the stadium outlay
  • DL said no. The fact that stadium costs had risen does not impact that number
  • DL said that with a debt of £637m, subject to reasonable assumption on interest rates, the net spend on players would not be affected
 

JeremyPaxton

Willing to play manager roulette
May 29, 2019
402
1,432
I would imagine are two plans for the £637m short-term Debt:

1) Term out £400m in fixed interest rate “Private Placement” bonds with amortisations over 30 years. Likely with a mortgage on the stadium and therefore a pretty much just like having a 30 year fixed rate mortgage on your house. Given how low interest rates are, annual interest charge of as little as £10m wouldn’t be out of the question, probably with an obligation to pay £10-15m of the balance per year starting in 2025-2030.

2) sell the naming rights for as near as dammit £237m. DL is probably hoping the two NFL games draw significant US interest/buzz about the stadium which he can parlay into a naming deal with a big US corporation in the 6-12 months. The weak sterling exchange rate should certainly be helping us here.
 
Top