Prestwich_Blue
Well-Known Member
What we did with season ticket money was known as a "securitisation" and we essentially pledged a portion of future income for a large cash injection. That was used to kit out the stadium after the Commonwealth Games and was little different to a mortgage, except our security was income rather than bricks and mortar. It was deemed to be a good risk as we were known to have loyal support. We took the money in two tranches, one repayable over 15 years and the other over 25 years and we're still paying these. This was good business.Dave Ewing's Back 'eader said:I think they have to hope for new ownership before they end up in administration. I've been hearing rumors they're paying their bills this year by taking a loan out against next year's TV money. That's dangerous business.
shackattack said:robert elstone said it was a relatively small amount ( 14 million ), so this makes you wonder where the money from player sales and our training ground have gone? reality is we cannot compete with other prem teams in relation to wages/ transfers. the offloaded wages of an arteta will be offset by lost revenue at home games. currently have loads of seats for the derby next saturday
Was MCFC doing this during Keegan's or Pearce's time with future season ticket money. Economic madness.
What Everton have done is take a loan against future TV income, which lots of clubs do to overcome a cash-flow shortfall. Bit like a payday loan really. Cash coming in tends to be irregular at football clubs (lump sums in Jan, May & August mainly) whereas outgoings are regular. So in Nov/Dec and March/April, things tend to be a bit tight. nothing wrong with this either.
However the problem comes if you have to borrow this money too early or you're pledging TV money too far in advance. so taking a loan in September against next May's money (as opposed to in November against January's money) would tend to suggest there's a serious problem.
Under Shinawatra we were only saved from going under by getting a £30m loan against TV money 2 or 3 seasons ahead. We couldn't have lasted another season on that basis.