We've been self-financed for 4 years and interest rates are so low that the cost has no material impact. This has been explained earlier in the thread.
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City borrow money from Barclays against TV revenue - any cause for concern?
- Thread starter aguerooooo
- Start date
jimharri
Moderator
But why should he? As others have said, and even as you hinted at, at some stage the Sheikh will want to see us as self sufficient and able to stand on our own two feet. We can't go running to him for top ups for ever. In the real world, businesses go to financial institutions for bridging loans to get them through a temporary cash flow problem. As for him losing interest in the club, we've just shelled out £60m on Mahrez and, if you believe Twitter (yes, I know!), we're considering shelling out serious money to try to get Pjanic....Why take what must be an interest bearing loan from Barclays when Sheikh Mansour could have provided this loan for free?
Because a) the club is on a sound financial footing now, can afford to, and would manage its own cash flow. And b) lending to the club for free carries an opportunity cost for the owner - he could be putting his money into something that actually gives him a good return on the investment.I do think this is a very strange move on the part of the club.
Given that we weren't as cash generative in the early years of our development under Sheikh Mansour and this up front cash injection hasn't been required previously you do have to question 'why now'?
Given Sheikh Mansour could very easily provide this cash (as must have been done previously) why do we now need a bank facility?
It would seem to me that this indicates a lack of appetite/willingness from the Sheikh to fund the club any further and that from now on the club must generate and operate within it's means. In one sense, that's fine as the Sheikh has done an immense job of building the club up such that this is possible. In another, is it a slightly worrying indication that the Sheikh is losing interest?
Why take what must be an interest bearing loan from Barclays when Sheikh Mansour could have provided this loan for free?
BlueAnorak
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We clearly have borrowed funds for a big transfer. As such I doubt "We're Done" at all.
Tim of the Oak
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But why should he? As others have said, and even as you hinted at, at some stage the Sheikh will want to see us as self sufficient and able to stand on our own two feet. We can't go running to him for top ups for ever. In the real world, businesses go to financial institutions for bridging loans to get them through a temporary cash flow problem. As for him losing interest in the club, we've just shelled out £60m on Mahrez and, if you believe Twitter (yes, I know!), we're considering shelling out serious money to try to get Pjanic.
Spot on.
richards30
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We clearly have borrowed funds for a big transfer. As such I doubt "We're Done" at all.
Hope so mate, khaldoon said he had learned from past winning title seasons about recruitment? Mahrez is a superb addition but despite what the usual attack dogs say we need another world class DM!
aguerooooo
Well-Known Member
Mosssidblue it seems that your job is to put down people more so correct anybody who writes with any negativity or concern FFS i am no needy fan and those who write with concern aren't either i have supported city for 50 years If those running our club make any financial changes is it a sin to give the fans who spend fortunes supporting this team, some clarification especially as it is now public knowledgeDo you really think the club should pacify a few needy fans through a statement on financial borrowing, give over
aguerooooo
Well-Known Member
You are on dangerous ground hope they dont let the dogs outHope so mate, khaldoon said he had learned from past winning title seasons about recruitment? Mahrez is a superb addition but despite what the usual attack dogs say we need another world class DM!
richards30
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You are on dangerous ground hope they dont let the dogs out
Lol! They will be scouring the forums as we speak! I just don’t believe that Jorginho was the only viable choice for the midfield this summer? Maybe the number one but if he wanted him then we surely still want another player in the same area?
doobyedoobye
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Lol! They will be scouring the forums as we speak! I just don’t believe that Jorginho was the only viable choice for the midfield this summer? Maybe the number one but if he wanted him then we surely still want another player in the same area?
Can't see us paying crazy money so I am struggling to see the options currently