red 2 hats
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- 15 Aug 2008
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Indeed. Everton's credit rating is likely to be junk, so they'd be paying over 10% interest on a commercial loan
Ocean Finance on the phone, oh shit, that was united wasn't it :)
Indeed. Everton's credit rating is likely to be junk, so they'd be paying over 10% interest on a commercial loan
Even Ocean Finance wouldn't touch the ragsOcean Finance on the phone, oh shit, that was united wasn't it :)
Perhaps they could do spomething around a sponsorship deal - nice synergy - between their name and Unitied's roof !Even Ocean Finance wouldn't touch the rags
there's no way they should be ok. That's the whole point, it's unfair on other clubs that have no loans to their owners if that happens.I think what they mean is that you'll need to include the loans immediately, but there will be a grace period in which the loans will be an acceptable excuse for breaching the PSR limit i.e. if the loans are the only reason you would have breached, you'll be ok
Then those clubs will presumably vote against itthere's no way they should be ok. That's the whole point, it's unfair on other clubs that have no loans to their owners if that happens.
At present there are no rules against interest free shareholder loans.Law a complete mystery to me, as you can frequently tell.
If the rules are unlawful because they currently don't include shareholder loans, we are saying the new rules will still be unlawful in the grace period, but the law doesn't care because it's wholly reasonable to have a grace period? Or that they will be lawful during the grace period just because it's a grace period, despite the treatment of shareholder loans in the grace period being the same as the treatment when they were found to be unlawful. Pretty circuitous logic?
I mean it's not like they are implementing new lawful rules with a grace period, which at least makes sense to me, a confused non-lawyer.
At present there are no rules against interest free shareholder loans.
There will be soon.
The new rules will apply to all loans whether or not agreed before the new rules come into force.
But.
Those rules will come into effect immediately for all new loans.
They will only come into effect after a grace period for existing loans.
It’s a bit like saying all cars must be fitted with catalytic converters. If you buy a new car it must have one immediately but for existing cars you have a year to fit them.
That’s just the cost of funds. The margin also needs to be factored in, which would differ depending on the credit risk.Why not Bank of England rates? (I’ll be honest I’m over my head with most of the discussions on this one)
It's also a bit like when UEFA FFP first came in. There were exceptions/exemptions for player contracts prior to the date the rules were brought in to mitigate against clubs failing solely due to existing contracts.Thanks for trying.
Still struggling with how you can have a grace period to correct something that has been previously found to be unlawful, tbh, but that is my problem and it will become clear soon enough, I guess :)
Appreciate your explanations as always.
It's also a bit like when UEFA FFP first came in. There were exceptions/exemptions for player contracts prior to the date the rules were brought in to mitigate against clubs failing solely due to existing contracts.
Of course, they moved the goalposts on that to catch us out, but that's another story