I'm not a 100% sure how football financing works but won't lots of this outstanding debt be on variable rates and subject to increases in the variable interest rate?
If so surely some knees will be knocking at the thought of double digit inflation and the effect on that rate?
Hmmm … that brought back some less than happy memories! Borrowed 50k for our house in ‘92 and it was £584 a month repayments. We were fortunate to be second time around and in established jobs. How young ones coped I don’t know.Exactly and variable interest rate accrued debt falls into that potential unsustainability.
For those of us who had mortgages in the eighties that were nicely affordable at around 8% (yes for you kids it was that high - we were told get as big a mortgage as you can afford) less than a year later it was 14.4% if my memory serves and most people were looking into the abyss. https://www.mortgagestrategy.co.uk/analysis/historical-interest-rates-uk/
For the less numerate amongst us that turns a 50K mortgage from £300+ a month to £600 a month. Just imagine the changes in repayments on 800 Million+.
Long term debt seems like a good thing in a stable low interest financial climate but I think it's clear we're entering a much more unstable time where the global economy is in a bit of turmoil.
Kinnell mine was running at 15/17%Exactly and variable interest rate accrued debt falls into that potential unsustainability.
For those of us who had mortgages in the eighties that were nicely affordable at around 8% (yes for you kids it was that high - we were told get as big a mortgage as you can afford) less than a year later it was 14.4% if my memory serves and most people were looking into the abyss. https://www.mortgagestrategy.co.uk/analysis/historical-interest-rates-uk/
For the less numerate amongst us that turns a 50K mortgage from £300+ a month to £600 a month. Just imagine the changes in repayments on 800 Million+.
Long term debt seems like a good thing in a stable low interest financial climate but I think it's clear we're entering a much more unstable time where the global economy is in a bit of turmoil.
That was the problem Leeds had back in the day. I think that their budget depended on getting to the CL QF (if not the SF?) every year to cover their costs. They failed to qualify one year for the CL and their financial model couldn’t cope. This set of a chain of events that ended with a fire sale of players, relegation and insolvency.This is the point about '"sustainable debt". A debt can be sustainable under one set of circumstances one day, such as (using a random example) if you happen to be guaranteed entry to the Champions League every year, but unsustainable the next, such as if you fail to qualify for the Champions League.
The chairman has to carry the can for such a dramatic failure.That was the problem Leeds had back in the day. I think that their budget depended on getting to the CL QF (if not the SF?) every year to cover their costs. They failed to qualify one year for the CL and their financial model couldn’t cope. This set of a chain of events that ended with a fire sale of players, relegation and insolvency.
Peter Risdale always gets the blame but he was simply doing what the Leeds board asked him to.
“Sustainable” includes no wild assumptions in the projected outturn. If your model is not realistic, it is wishful thinking, not a business plan.This is the point about '"sustainable debt". A debt can be sustainable under one set of circumstances one day, such as (using a random example) if you happen to be guaranteed entry to the Champions League every year, but unsustainable the next, such as if you fail to qualify for the Champions League.
This illustrates the point of stress testing your plan. Test: what happens if inflation rises from 2% to 5%?, to 8%, to 10% etc.Exactly and variable interest rate accrued debt falls into that potential unsustainability.
For those of us who had mortgages in the eighties that were nicely affordable at around 8% (yes for you kids it was that high - we were told get as big a mortgage as you can afford) less than a year later it was 14.4% if my memory serves and most people were looking into the abyss. https://www.mortgagestrategy.co.uk/analysis/historical-interest-rates-uk/
For the less numerate amongst us that turns a 50K mortgage from £300+ a month to £600 a month. Just imagine the changes in repayments on 800 Million+.
Long term debt seems like a good thing in a stable low interest financial climate but I think it's clear we're entering a much more unstable time where the global economy is in a bit of turmoil.
Scousewashing has been going on for generations so don’t expect anything to change anytime soon.And it’s a £100 million more than Liverpools, where’s all this bullshit about Fenway sport doing things the right way when they are that much in the hole?