As I said, for the stadium, the cash now is absolutely better as the contractor will want paying. For players, yes, they can spilt the £40m upfront as down payments on several players, but it depends what state their accounts are currently in. If they've got a hole going forwards due to lack of CL cash, they may prefer £20m now and £20m next year, they may not, neither of us knows. They could be banking on future cash windfalls, but that's what Leeds did...You're not getting it mate. If you buy a player for an amount of money then you accrue it in the accounts REGARDLESS of the payment terms.
But this is not about FFP.
Let me put it as simply as I can. LFC will be forecasting that revenue will increase year on year, especially as they are expanding the stadium. If we give them £40m cash then that would enable them to buy their own £60m player and pay over 3 instalments over 6 years. But they'll still have £20m of our cash in the bank to buy another £60m player on the same basis. They know with better tv money and match day income they can fund the second two payments, so we've enabled them to buy the players.
Another way to look at it is that they need to borrow £200m to develop a stadium. To borrow that cash will cost them £300m over ten years. Now, they need to borrow less so the loan of £160m will cost them £250m over ten years. We've saved them £10m by paying upfront.
Of course I'm simplifying it hugely, but cash upfront is more valuable than cash 'on tick' because of interest rates. I'm not even touching on the interest you can gain by having that cash in the bank.
The owners have given the club an interest-free loan to pay for the upgraded stadium.
The owners have given the club an interest-free loan to pay for the upgraded stadium.
That's nice. Our owner just paid for ours and he didn't get it from IKEA either.The owners have given the club an interest-free loan to pay for the upgraded stadium.
Haha!That's nice. Our owner just paid for ours and he didn't get it from IKEA either.
That's nice. Our owner just paid for ours and he didn't get it from IKEA either.
oh you're back! ran away the other day didnt you?I wasn't posting it for some dick measuring contest but just to point out how the two previous posts to mine were barking up the wrong tree.
I wasn't posting it for some dick measuring contest but just to point out how the two previous posts to mine were barking up the wrong tree.