City launch legal action against the Premier League | City win APT case (pg901)

[jrb]

Plain and simple.

Here’s why the 3 Red Cartel Clubs wanted to stop and destroy City, with the help of UEFA, let’s not forget, and Masters and the PL, as well as other European cartel clubs, and other PL clubs, Spurs, etc. Only the Saudis and Newcastle (and PSG) could have competed with City financially.

They wouldn’t be able to compete if owner (and family) investment was allowed.

Sheikh Mansour.

individual net worth of at least £17 billion and a family fortune of about $1 trillion.

 

[the blue panther]

I watched Martin Samuel piece and he said directors loans were what brought Pompey down, the directors hit hard times and requested the money back.

I am sure the PL must have forgotten how toxic loans could be.

That's exactly right, re Portsmouth. As to the rate on loans, if a football club is effectivey bankrupt, but for having had loans, it has little in the way of creditworthiness. So, to say that the rate on a £200M loan might be 5% p.a. is pure guesswork. The funder - a bank or whatever institution - would charge a high rate of return, or would never give the loan, because of the risk of a default.
A club might think it has £300/400M of players and a ground to sell, but if it comes to a fire-sale, that valuation comes tumbling down. So, if you are guessing the likely rate of return on a big loan to a borderline-bankrupt club, I submit you have to pitch in a figure much higher than the present bank base rate of 5%.
"Mates rates" can't be applied. In the Premier League, most of the teams appear stable enough, but they still wouldn't get a cheap rate of loan - and 5% is the base rate. How stable would they appear but for the interest free shareholder loans?

 

[halfcenturyup]

Can’t be.

As we all know, these rules were brought in to “prevent another Portsmouth”.

..... "prevent another Portsmouth" challenging at the top.

 

[oakiecokie]

Got to be careful with ‘em. Very habit forming I believe. Works a treat though!

Yes thats the reason my GP will only allow me 2 x 28 lots per year.

 

[Keeper!]

Plain and simple.

Here’s why the 3 Red Cartel Clubs wanted to stop and destroy City, with the help of UEFA, let’s not forget, and Masters and the PL, as well as other European cartel clubs, and other PL clubs, Spurs, etc. Only the Saudis and Newcastle (and PSG) could have competed with City financially.

They wouldn’t be able to compete if owner (and family) investment was allowed.

Sheikh Mansour.

individual net worth of at least £17 billion and a family fortune of about $1 trillion.

Partially true but after a considerable initial investment , will our club and later in time the CFG be 100% self funding?

Do you think the likes of scruffy Jim and J.W.Henry are spending their own cash? Because I am certain they are not.

 

[wolviedinho]

Can’t be.

As we all know, these rules were brought in to “prevent another Portsmouth”.

It went from preventing another Portsmouth to stopping another man united from happening.

City’s dominance and world wide commercial growth shows they have failed.

 

[East Level 2]

I watched Martin Samuel piece and he said directors loans were what brought Pompey down, the directors hit hard times and requested the money back.

I am sure the PL must have forgotten how toxic loans could be.

The PL forget and remember whatever they are told to forget or remember.

 

[mancboy]

Partially true but after a considerable initial investment , will our club and later in time the CFG be 100% self funding.

Do you think the likes of scruffy Jim and J.W.Henry are spending their own cash? Because I am certain they are not.

This is always what i think is funny when it comes to people talking about owner investment etc and how much they are worth, these people dont become billionaires and continually increase their net worth by just pissing money away, most outlay is viewed in terms of investment and what they are likely to receive back on it.

 

[hammocity]

The APT case has confirmed what the Commons Select Committee told Masters last year:”That he doesn’t know what he is doing.” How long is this farce going to continue?

I watched some of the Commons Select Committee questioning Masters, the MP's seemed to be pretty clueless, there's a lot more football savvy people on this forum that would have interrogated Masters and blown his cover.

I'm just not confident at all that an Independent Regulator will be anything other than influenced by the media and other members of the House of Parliament

 

[hammocity]

That's exactly right, re Portsmouth. As to the rate on loans, if a football club is effectivey bankrupt, but for having had loans, it has little in the way of creditworthiness. So, to say that the rate on a £200M loan might be 5% p.a. is pure guesswork. The funder - a bank or whatever institution - would charge a high rate of return, or would never give the loan, because of the risk of a default.
A club might think it has £300/400M of players and a ground to sell, but if it comes to a fire-sale, that valuation comes tumbling down. So, if you are guessing the likely rate of return on a big loan to a borderline-bankrupt club, I submit you have to pitch in a figure much higher than the present bank base rate of 5%.
"Mates rates" can't be applied. In the Premier League, most of the teams appear stable enough, but they still wouldn't get a cheap rate of loan - and 5% is the base rate. How stable would they appear but for the interest free shareholder loans?

Yep, business rate loans for high risk would be well in excess of a BOE base rate of 5%.