Qwiss! wrote:
Didn't the Kroenkes just shuffle money around in terms of where loan sit, etc I don't think they made direct investment. However unlike Ricky I don't see that as a positive.
That was the loan 2 summers ago to pay out part of the bond debt that required us to hold about 36m in reserves for debt payment.
The 'concern' is where has the funding come for our spending last summer, as not only did we spend about 150m in transfers, but we also paid out the Govt COVID loan of around 124m. I seem to recall some talk of another loan being taken out (by the club?) to do so, but nothing in regards to our transfer spend. I have not looked at Swiss Ramble to see if he can shed some light.
goon wrote:
I don't think Roman has had to invest too much of his own funds for a while, but I vaguely remember reading he converted over £300m of 'interest free loans' into equity a while back, and they still owed him another £700m. Even disregarding the scale of the loans, there was nothing to suggest ours are interest free.
I'm with Ricky, I don't want us to get into anywhere near that sort of position.
Even after the conversion of some of the debt into equity, IIRC CFCs parent company still owe over 1bn to Abramovich in loans that do not generate interest and nor do they have any payment schedule, other than if he sells the club. IIRC the only way he can convert any more debt into equity is if they build / expand the stadium, which is why some got concerned when he pulled the plug on their stadium build.
Clrnc wrote:
We have to though, especially now that we are so far behind which is why KSE wrote off so many failed signings paid them off and approved over the budget signings like Partey Pepe etc and our highest spending window this year even without European football cash.
And they have to continue injecting in whatever ways they can till we can compete again.
I suspect the funds for Partey's release clause were diverted from the 36m freed up from the loan the same summer as above.
Burnwinter wrote:
Ricky1985 wrote:
Agree, Goon. If we're not smart enough to rebuild the squad with the money we have then we need to get smarter and not run to Stan and ask for a handout.
Don't really agree with this. I think the imperative is that the calibre of our recruitment continues in line with that of our rivals for the next two or three seasons. The necessary upside is there in revenue and club value in my opinion.
Whilst I agree my concern is that the talk of a youth project for the next 2-3 seasons is also code for reduced transfer expenditure for that same period. As such we may have effectively spent the likely budget for the period, and any additional funds will need to come from player sales. The calibre of the signings may stay as it has been last summer, but they may be based on youngsters and potential rather than players who are 'established' at top levels.
