City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

It would have to be by loan, wouldn't it ?
We haven't got a big piggy bank or savings in the tsb.
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.
 
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.
 
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.
 
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.
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).

That’s why I mentioned redoing the north stand doesn’t feature in the ffp equation.
 
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.
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.

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.
 

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.