Boro borrow £7m against Akpom transfer
- Thread starter edinboro
- Start date
uncle_rico
Well-known member
So we've borrowed the best part of £15 million in the last few months? Makes sense to get that money into the club now, rather than wait for it in dribs and drabs over the next few years. Would imagine a lot of clubs are doing this.
It's not a loan. It's debt factoring.
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ThatFragranceGuy
Well-known member
Bet he's gasping to see his money disappear down a hole
Norman_Conquest
Well-known member
The grass isn't always greener.
coluka
Well-known member
He who dares wins Norm
"It’s a whole lot more satisfying to reach for the stars, even if you end up only landing on the moon.” — Kermit the Frog.
Tryasize10
Well-known member
Can you explain to the less informed why the club is in such a mess and why we are going to end up in administration? I mean, these are big bold statements that really need to be substantiated.
Glover_elbow
Well-known member
But sometimes is
BoroMart
Well-known member
It means that if we don't go up we will have to keep selling and keep borrowing against future income. Yes, it keeps the debt down but surely it highlights that Gibson is not covering the running costs anymore. I'm not sure this is a good thing, unless maybe he's looking to sell (or get outside investment) and doesn't want anymore debt in the club?
Redwurzel
Well-known member
It must be impossible to run a Championship Club without making a trading loss on normal activities.
What I mean by that is without parachute payments, trading profit on transfers, subsidy from owner(s).
With average players wanting £750k to £1m a year (I remember George Friend going to Brum for £16/18k per week, same with Ayala to Blackburn) and that was 3 years ago.
What I mean by that is without parachute payments, trading profit on transfers, subsidy from owner(s).
With average players wanting £750k to £1m a year (I remember George Friend going to Brum for £16/18k per week, same with Ayala to Blackburn) and that was 3 years ago.
But if your own grass is a patchy brown and getting browner you should be looking to do something about it instead of waiting until it is too late. We can barely remember it being green at this point.
uncle_rico
Well-known member
Hopefully some truth in this Danish chap wanting to invest.
I get that Gibson and O'Neil may want the club to be more sustainable, but there has to be some investment from the owners otherwise we will not progress.
The club has made far too many mistakes over the last 15 years and although our aspirations are positive, we will need to be very lucky to make it work.
Ironops
Well-known member
I think this means that as a business we are now on a much better financial footing - a transfer surplus will help off set some of the money Gibson has had to put in to cover all of the costs.
But from a footballing perspective its clearly a disaster - yes its early days but some of the players we have brought in, on the cheap, just dont look good enough (Silvera stands out a mile for me) and as others have said above, if we dont go up we will likely sell any assets we do have next summer - Hackney being the obvious one.
It may well be that our best players this season end of being loans, so next summer we start again
But from a footballing perspective its clearly a disaster - yes its early days but some of the players we have brought in, on the cheap, just dont look good enough (Silvera stands out a mile for me) and as others have said above, if we dont go up we will likely sell any assets we do have next summer - Hackney being the obvious one.
It may well be that our best players this season end of being loans, so next summer we start again
HeineOtto
Active member
Surely its about cash flow. Boro's accounts have previously highlighted that we do not carry a huge cash surplus in the bank account.
With the Chuba sale Ajax have to manage their cash flow so agree a staggered payment plan for the transfer.
As with anyone selling something, the seller wants the money asap so we can use the money from the sale therefore we access a debt factoring deal. (Quite common in big business)
Fans shout 'spend the Akpom money' well if we have done that during the last transfer window, this is how we do it.
Obviously we will have staggered payment plans in place too but these will all be different depending on the total transfer fee paid.
With the Chuba sale Ajax have to manage their cash flow so agree a staggered payment plan for the transfer.
As with anyone selling something, the seller wants the money asap so we can use the money from the sale therefore we access a debt factoring deal. (Quite common in big business)
Fans shout 'spend the Akpom money' well if we have done that during the last transfer window, this is how we do it.
Obviously we will have staggered payment plans in place too but these will all be different depending on the total transfer fee paid.
The debt the club was already in plus selling players and taking more loans on is proof we operating outside of our means.I don't know how long a club can run like that but without promotion financial backing the longer we remain in the championship running on conditions such as these it's only a matter of time until the ship sinks.