City borrow money from Barclays against TV revenue - any cause for concern?

[nellyonthewing]

We should have stuck it in an ISA.

 

[mosssideblue]

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 knowledge

Mate, there thought that the club would offer an explanation to fans as to why they took a loan is ....

 

[wagonman]

Look Gang...

How about, instead if getting our knickers in a twist, we do something to help out?

There must be someone on here who knows how to set up a "Just Giving" page for HRH Sheikh Mansour (May his Name Be Praised Forever).

Then, instead of moaning and worrying and getting depressed, we can help out our beloved club.

If we raise enough we might be able to buy Fellaini or Jones...

JJ

 

[CityInWashingtonState]

I'm not sure why we're borrowing.

But if it's to make a huge player purchase... that line of thought runs counter to several facts:
1) Under Pep we've been fairly transparent about whom we were pursing in the transfer windows (pursing some secret mega deal would be a departure from past windows);
2) Who is actually available that we'd be interested in and which would require a huge outlay of money to be successful?;
3) Assuming that some mega deal is possible, why wouldn't our owner front his own money as he's done in the past?

Points 1-3 above lead me to believe that it's financially prudent to borrow money at this time and that this is driving factor.

Anyhow, this is just speculation on my part - I welcome any constructive input to the contrary.

 

[cookster]

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 knowledge

Here's a suggestion, let the management team who have done an excellent job running the club get on with it.

Maybe our actions in the next few weeks will explain why we have increased our overdraft with Barclays.

 

[aguerooooo]

Here's a suggestion, let the management team who have done an excellent job running the club get on with it.

Maybe our actions in the next few weeks will explain why we have increased our overdraft with Barclays.

You itk cookster

 

[Bodicoteblue]

Well, we can’t say we weren’t warned!
All those rags and dippers told us the sheik would get bored and walk away.
We’re doomed!

 

[Prestwich_Blue]

I'm not sure why we're borrowing.

But if it's to make a huge player purchase... that line of thought runs counter to several facts:
1) Under Pep we've been fairly transparent about whom we were pursing in the transfer windows (pursing some secret mega deal would be a departure from past windows);
2) Who is actually available that we'd be interested in and which would require a huge outlay of money to be successful?;
3) Assuming that some mega deal is possible, why wouldn't our owner front his own money as he's done in the past?

Points 1-3 above lead me to believe that it's financially prudent to borrow money at this time and that this is driving factor.

Anyhow, this is just speculation on my part - I welcome any constructive input to the contrary.

We'll see what happens but tolmie has said that it's a credit facility rather than an outright loan. So that probably means the CFO feels we may need overdraft facilities during the season.

Last season we generated nearly £145m of excess cash (after paying wages). All that, plus revenue from player sales, went on transfers. We owed about £90m for existing transfers in the 2017 accounts, of which £72m had to be paid in the 2018 financial year just ended, as well as whatever cash last summer's transfers required. Revenue doesn't come in a linear fashion; it's irregular whereas our expenses are more regular. It's the same for anybody who has to shell out a load of money which they know they will be able to cover in a few months but haven't got at the time. It's a timing difference.

As to your question about why the Sheikh doesn't fund this, he hasn't put a penny in for the last few years and even before that his major cash injections were to cover infrastructure projects - the CFA and SS3. We are self-sufficient now. at least as far as operating costs are concerned.

 

[CityInWashingtonState]

We'll see what happens but tolmie has said that it's a credit facility rather than an outright loan. So that probably means the CFO feels we may need overdraft facilities during the season.

Last season we generated nearly £145m of excess cash (after paying wages). All that, plus revenue from player sales, went on transfers. We owed about £90m for existing transfers in the 2017 accounts, of which £72m had to be paid in the 2018 financial year just ended, as well as whatever cash last summer's transfers required. Revenue doesn't come in a linear fashion; it's irregular whereas our expenses are more regular. It's the same for anybody who has to shell out a load of money which they know they will be able to cover in a few months but haven't got at the time. It's a timing difference.

As to your question about why the Sheikh doesn't fund this, he hasn't put a penny in for the last few years and even before that his major cash injections were to cover infrastructure projects - the CFA and SS3. We are self-sufficient now. at least as far as operating costs are concerned.

Thanks for your post - interesting reading.

 

[malg]

Here's a suggestion, let the management team who have done an excellent job running the club get on with it.

Maybe our actions in the next few weeks will explain why we have increased our overdraft with Barclays.

Hey, obviously not, we've got the begging bowl out to the Barclay brothers....