SWP's back
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Not necessarily. As it doesn’t count towards FFP our owner could pay for it himself through a personal loan to the club or by injecting cash through equity.
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City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)
- Thread starter Marvin
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asahartford1
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Not necessarily. As it doesn’t count towards FFP our owner could pay for it himself through a personal loan to the club or by injecting cash through equity.
A personal loan is still a loan.
I thought an owner could only invest so much cash per annum, not enough to fund a stand.
No expert so am willing to learn.
blue b4 the moon
Well-Known Member
Thing is we made £1m profit last year, with this loan if it's big enough the intrest could be enough to put us in the red.
Gareth Barry Conlon
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Thing is we made £1m profit last year, with this loan if it's big enough the intrest could be enough to put us in the red.
The costs of a loan are all tax deductable ;)
blue b4 the moon
Well-Known Member
Fuck, of course it is.....I mean I was fishing ;)The costs of a loan are all tax deductable ;)
Keith Moon
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If Leicester and Napoli wants the full transfer fee upfront, we might need a little cash injection.
SebastianBlue
President, International Julian Alvarez Fan Club
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Many possible reasons for taking a loan, including tax considerations, cash flow management, fairly common capital investment liability/indemnity, and so on.
It’s rather common for successful businesses to use loans to manage all of the above and more, so I would not worry unless we have other information to give us cause for concern.
It’s rather common for successful businesses to use loans to manage all of the above and more, so I would not worry unless we have other information to give us cause for concern.
SWP's back
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A loan is a loan you’re right but there’s no law in the world that stops a business owner loaning his company money and they can convert into equity if they like (ie it stops being a loan as the company doesn’t pay it back).A personal loan is still a loan.
I thought an owner could only invest so much cash per annum, not enough to fund a stand.
No expert so am willing to learn.
That’s why I mentioned redoing the north stand doesn’t feature in the ffp equation.
Prestwich_Blue
Well-Known Member
There's a difference between a loan and equity, which involves buying shares. Sheikh Mansour could lend us a billion pounds and that's OK as it's not classed as income. When we spend that money however, we can only do that within FFP rules. When owners have to make up a loss for FFP purposes, they're only allowed to put in (I think) €30m over any 3-year period. So he could lend us that billion, we could make a €35m aggregate loss over 3 years (as all clubs are allowed to lose €5m) and he could cover €30m of that without problems.A personal loan is still a loan.
I thought an owner could only invest so much cash per annum, not enough to fund a stand.
No expert so am willing to learn.
If we were building a new stand, that wouldn't fall under FFP restrictions as it's a capital expenditure not a revenue & expenditure cost. So he could fund all of that without any issues.
Centurions
Well-Known Member
I thought all infrastructure costs were pretty much open season?A personal loan is still a loan.
I thought an owner could only invest so much cash per annum, not enough to fund a stand.
No expert so am willing to learn.