Read the Sunday Mirror today lads and lasses

[Melton Fox]

Isnt it like paying off a credit card balance with minimum payments from you savings?

I've got a credit card with a fairly hefty debt. Maybe if I used all my savings I could pay off a huge chunk of it. However, if in an emergency I need my savings, I can't access it because I've just paid off my credit card.

I'm better off paying my monthlys and having the cash ready in the bank for that emergency

 

[Durham Fox]

I've got a credit card with a fairly hefty debt. Maybe if I used all my savings I could pay off a huge chunk of it. However, if in an emergency I need my savings, I can't access it because I've just paid off my credit card.

I'm better off paying my monthlys and having the cash ready in the bank for that emergency

Not so, you are being charged 19% (lets say) on the credit card balance and 4% (lets say) on your savings. Making you -15% in basic terms (not knowing the figures) If you paid off the debt youd be at 0% with all of your credit limit available SHOULD you need the money.

 

[cleefox]

I think they would look to buying the ground if/when promotion to the Premiership was achieved and then possibly only if/when the team became an established Premiership side.

 

[drew]

Couldn't you use your credit card for emergencies?

 

[Melton Fox]

Couldn't you use your credit card for emergencies?

Yes, but the stadium debt isn't a credit card, once that cash has gone, it's gone.

 

[Yorkshire Vixen]

I think they would look to buying the ground if/when promotion to the Premiership was achieved and then possibly only if/when the team became an established Premiership side.

agree with you it seems pointless in using the money to pay off the stadium when the playing side needs it much more....it sounds like some people would rather own the stadium out-right than have the chance to build a successful team

 

[Yorkshire Vixen]

Yes, but the stadium debt isn't a credit card, once that cash has gone, it's gone.

itd be like frittering away 'spare' cash that we clearly havent got when they are other more important things to use the money on

 

[Durham Fox]

agree with you it seems pointless in using the money to pay off the stadium when the playing side needs it much more....it sounds like some people would rather own the stadium out-right than have the chance to build a successful team

Im not saying that YV, I think there will be roughly £5m to spend on players. Are you saying you want £20m to spend on players? If so you then you have a huge wage bill and still the £1m a season loan payment to Teachers. Sounds like a road weve been down before to me.

 

[Yorkshire Vixen]

the wage bill doesnt have to be huge :icon_wink :icon_bigg

 

[Durham Fox]

itd be like frittering away 'spare' cash that we clearly havent got when they are other more important things to use the money on

Frittering? Investing in long term stability? by owning our own ground and offices?

Frittering? spending money on expensive commodities that have a huge wage attached and potentially 100% depreciation in the time they are with us.

 

[Durham Fox]

the wage bill doesnt have to be huge :icon_wink :icon_bigg

Oh right, we are buying those expensive players that want paying in tap washers? :icon_roll

 

[Yorkshire Vixen]

im only saying the playing side is much more important and in need of spending money on than it going towards the stadium

 

[highland fox]

Owning the ground is concrete,bricks and mortar.Spending it on players who may or may not bring success and whose value may decrease is riskier.You would be better owning your house rather than spending thousands and thousands on decorating/furnishing it

 

[Melton Fox]

If you are setting up a business you only spend money on things that are going to make your business grow.

If we spend £20mill on players in January and assuming we are in touching distance of the play offs that will nigh on gaurantee promotion. The money from sky will more than pay for the stadium

Spending £5mill will probably only buy journeymen on their last prem legs or people like Freddie Eastwood and to be frankly honest, I wouldn't even entertain the idea of these sorts of players if we are talking about the investemt that we are. These are "budget" players at the cheap end of the market for the right reasons. They won't get us promoted this season

 

[OldGit]

I don't disagree with not using all your cash to clear a debt, but, to continue the credit card analogy, if you keep paying just the monthly minimum, the debt keeps increasing. At some point you bust your credit limit.

That was the point I was making earlier. Frankly I have no more idea than the rest of you what the precise economics of the case are, but there must come a point at which the Teachers Fund will say enough is enough, we can't accept the debt increasing on an aset with little real value and want more.

There must therefore be an optimum strategy for a new owner somewhere between instantly paying it off and doing nothing about it.

 

[1966]

Theres only one question I would like the answer to.

If he does buy the club he can do what he wants with the players, managers, prices etc; what would he do however if he invests significant money on players in the next few seasons and does not get promotion and therefore effectively loses that investment?

This is football after all and results are not gauranteed.

 

[Durham Fox]

im only saying the playing side is much more important and in need of spending money on than it going towards the stadium

I realise that but there is still money available for players if we buy the stadium. If we do buy the stadium that immediately gives us an extra £1m EVERY YEAR to spend on players.

If £5m isn't enough to get us out of this league coupled with what we already have then serious questions need asking.

 

[drew]

If it was me i would pay off half and restructure the debt with third party.

 

[highland fox]

Mandaric or whoever will want something concrete,he won't want to spend 15 million on players who may or may not bring success.If they don't then his money has gone down the shitter.

 

[Durham Fox]

If you are setting up a business you only spend money on things that are going to make your business grow.

If we spend £20mill on players in January and assuming we are in touching distance of the play offs that will nigh on gaurantee promotion. The money from sky will more than pay for the stadium

Spending £5mill will probably only buy journeymen on their last prem legs or people like Freddie Eastwood and to be frankly honest, I wouldn't even entertain the idea of these sorts of players if we are talking about the investemt that we are. These are "budget" players at the cheap end of the market for the right reasons. They won't get us promoted this season

Tell that to Wolves.