What’s financing this new found spending power

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h69
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Re: What’s financing this new found spending power

Post by h69 » Fri Jul 13, 2018 9:52 am

hd1 wrote:
Hildreth_1101 wrote:Owners spend as much or as little as they feel they can with FPP.

Because reality is club isn't always running with actual liquid capital to go purchase players and most the financing for the actual cash money is done by specialist lenders who lend on the bases of projected income ie TV money, hence why you always see some form of Transfer related loan on the Financial statement mentioned as being paid back during the year.

So to answer your question, what is financing this spending power? UK financial market :i am genuinely amused:

Time and time again I read fans views on spending money and I see a lot of them don't quite get how running a football club works, that's why they're fans and owners are owners.

[*] That said I done analysis before and still come to the conclusion that the owners are underspending slightly and also not as generous as Bill Kenwright at Everton offering interest free loans to the club compared to our owners 5-11% loans.

[*] In addition, we have paid down more debt in the past couple of years, so that may also be a factor.

[*] Furthermore - I also think owners trust this manager far more than Moyes / Bilic.

[*] Finally I think pressure from the fans and our recent league performances has made the owners realise they need to spend more on the squad.

Combination of the factors.
goodpost:)
Yes. Spot on !
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only1salty
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Re: What’s financing this new found spending power

Post by only1salty » Fri Jul 13, 2018 10:41 am

Hildreth_1101 wrote:Owners spend as much or as little as they feel they can with FPP.
This is a line peddled by the owners. Excuse 101. WHU were 16th in net spend tables last season. Below behemoth's such as Bournmouth. How do you think they managed their FFP commitments?
Hildreth_1101 wrote:
Because reality is club isn't always running with actual liquid capital to go purchase players and most the financing for the actual cash money is done by specialist lenders who lend on the bases of projected income ie TV money, hence why you always see some form of Transfer related loan on the Financial statement mentioned as being paid back during the year.

So to answer your question, what is financing this spending power? UK financial market :i am genuinely amused:
They borrow money for liquidity and use the global financial system or rich guys like our Tripp. Point remains, massive increase in TV money in excess of an extra £40m last season, £40m profit booked in the accounts.
Hildreth_1101 wrote: Time and time again I read fans views on spending money and I see a lot of them don't quite get how running a football club works, that's why they're fans and owners are owners.
It may surprise you that many fans run businesses.
Hildreth_1101 wrote:
[*] That said I done analysis before and still come to the conclusion that the owners are underspending slightly and also not as generous as Bill Kenwright at Everton offering interest free loans to the club compared to our owners 5-11% loans.
.

Underspending slightly is understatement of the year
Hildreth_1101 wrote:
[*] In addition, we have paid down more debt in the past couple of years, so that may also be a factor.

[*] Furthermore - I also think owners trust this manager far more than Moyes / Bilic.
Said it before. Only 1 person is responsible for appointing a manager and if they don't trust him to run the team then only one person is to blame for putting/leaving him there.


For whatever reason - since our move to the Iconic Stadium we have underspent our rivals for 2 successive seasons, fell behind in terms of playing staff and are then shocked by poor results.

When you underinvest in a business, any business, you fall behind the competition.

What we are doing this summer is not catching up, in my opinion, we are matching our rivals. The business so far has been good, don't get me wrong but lets be realistic......

We have signed 2 freebies, a relegated goalkeeper and a Dortmund benchwarmer.

I still look forward to the Marquee signing to try to raise our level above those currently around us like Palace, Bournmouth, Southampton.....

Still also concerned that we do not have a holding midfielder
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h69
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Re: What’s financing this new found spending power

Post by h69 » Fri Jul 13, 2018 10:47 am

only1salty wrote:
Hildreth_1101 wrote:Owners spend as much or as little as they feel they can with FPP.
This is a line peddled by the owners. Excuse 101. WHU were 16th in net spend tables last season. Below behemoth's such as Bournmouth. How do you think they managed their FFP commitments?
Hildreth_1101 wrote:
Because reality is club isn't always running with actual liquid capital to go purchase players and most the financing for the actual cash money is done by specialist lenders who lend on the bases of projected income ie TV money, hence why you always see some form of Transfer related loan on the Financial statement mentioned as being paid back during the year.

So to answer your question, what is financing this spending power? UK financial market :i am genuinely amused:
They borrow money for liquidity and use the global financial system or rich guys like our Tripp. Point remains, massive increase in TV money in excess of an extra £40m last season, £40m profit booked in the accounts.
Hildreth_1101 wrote: Time and time again I read fans views on spending money and I see a lot of them don't quite get how running a football club works, that's why they're fans and owners are owners.
It may surprise you that many fans run businesses.
Hildreth_1101 wrote:
[*] That said I done analysis before and still come to the conclusion that the owners are underspending slightly and also not as generous as Bill Kenwright at Everton offering interest free loans to the club compared to our owners 5-11% loans.
.

Underspending slightly is understatement of the year
Hildreth_1101 wrote:
[*] In addition, we have paid down more debt in the past couple of years, so that may also be a factor.

[*] Furthermore - I also think owners trust this manager far more than Moyes / Bilic.
Said it before. Only 1 person is responsible for appointing a manager and if they don't trust him to run the team then only one person is to blame for putting/leaving him there.


For whatever reason - since our move to the Iconic Stadium we have underspent our rivals for 2 successive seasons, fell behind in terms of playing staff and are then shocked by poor results.

When you underinvest in a business, any business, you fall behind the competition.

What we are doing this summer is not catching up, in my opinion, we are matching our rivals. The business so far has been good, don't get me wrong but lets be realistic......

We have signed 2 freebies, a relegated goalkeeper and a Dortmund benchwarmer.

I still look forward to the Marquee signing to try to raise our level above those currently around us like Palace, Bournmouth, Southampton.....

Still also concerned that we do not have a holding midfielder
Not aimed at just you but why do people constantly complain when players are free. There have been some world class players signed on frees over the years. It does not make Fredericks for instance any worse because he allowed his contract to run down and would not sign a new one. Surely we have to look at what the player can do for us rather than his price tag which is irrelevant to me.

Obiang is a holding midfielder and so can Rice be (I would actually like this to happen actually)

We are a long way ahead of Southampton. They arguably sold their best player in Tadic this summer, Everton have to sell to spend and who have Bournemouth bought ?
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Hildreth_1101
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Re: What’s financing this new found spending power

Post by Hildreth_1101 » Fri Jul 13, 2018 12:27 pm

I don't disagree with you Salty, merely answering questions as asked by the OP.

Fans who run football clubs usually ones who have an understanding of how to run a business so I never meant it to say fans can't run a football club more that some people just think its as simple as we got 40 million in TV money and therefore we got 40 million more to spend.

FFP is more an indicator on your spending capacity not an excuse not to spend, the OP asked where the money came from and its obvious its always been there just there has been decisions not to exercise our spending to our full potential as allowed by FFP.

These decisions can be defended and criticised and judging by our league performances I would say fairly criticised along with the PR disaster that is our board and chief executive but points I made above would be logical reasons to why the chequebook is suddenly open.
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BCHammer
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Re: What’s financing this new found spending power

Post by BCHammer » Sat Jul 14, 2018 2:47 am

This will be unpopular, but Im going to say Karren Brady.

Shes not very nice, but she is very smart.

I have struggled to understand how these things that have happened have done so on her watch while she picks up awards left, right and center for her business acumen.

She knows the finances of the club inside out, she knows what money they have, she has her finger on the pulse of the TV money, restructuring the debt and so on. All the negative press, protests, marches and what not is ultimately going to hurt brand Brady.

I think she has sat the little one down and told him straight to stop cocking about and this is what we have to do. If we can finish 6th-8th and get bazillions of shirt sales for Wilshere and other big names, those investments are going to pay for themselves in no time. And ultimately they will be even richer.

And last, but not least, the big one - the stadium. She knows the end is near for LLDC and the fruition of of her original scheme in basically inheriting it is drawing nigh. She has it all engineered down to a T and she is keeping her beady eye on the developments with all those involved.
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hammerwell75
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Re: What’s financing this new found spending power

Post by hammerwell75 » Sat Jul 14, 2018 3:34 am

Remember the Andy Swallow/cancelled protest march ? Andy said something like "someday very soon you'll be glad the march was cancelled". Maybe AS knew something was in the pipeline , lets not forget he had a meeting with Sulivan

I wonder if this investment was what he ment when he said , 'don't scare off the investors with a load of noise'. 

Could we be in for a take over or maybe we've got some new silent financial investors . Who knows but so long we carry it on and it's not just a one season wonder thdn who cares where it comes from . As long as it's all above board and we start building a squad that will bring us some success .... whufc_crest
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Baddowhammer
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Re: What’s financing this new found spending power

Post by Baddowhammer » Sat Jul 14, 2018 8:57 am

hammerwell75 wrote:Remember the Andy Swallow/cancelled protest march ? Andy said something like "someday very soon you'll be glad the march was cancelled". Maybe AS knew something was in the pipeline , lets not forget he had a meeting with Sulivan

I wonder if this investment was what he ment when he said , 'don't scare off the investors with a load of noise'. 

Could we be in for a take over or maybe we've got some new silent financial investors . Who knows but so long we carry it on and it's not just a one season wonder thdn who cares where it comes from . As long as it's all above board and we start building a squad that will bring us some success .... whufc_crest
That's exactly what I was thinking whatever they saw from the board was something of high importance because of the quick turnaround by the lads,if this is the case then they deserve credit for their silence.COYI
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