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Originally posted by ChiKeyMonKey
A good point well made..
Let's stick several up the Villa!!
Basically, we'll go from being a business that was sold for £234m to being a business with a loan of perhaps £350m. Yes, there is some added value in terms of increased revenue streams and a better squad, but remember that we've now given the banks the better part of £50m in interest payments and arrangement fees: that's gone for good and we've seen no benefits of it whatsoever.
What's been holding up the refinancing has been the reluctance of G&H to provide collateral as a guarantee to the bank that they won't scarper. Given that the loans are now greater than the value of the club (because we've given the banks a lot of money), it's not surprising that RBS want to be able to recover the difference from G&H if the club has to be sold.
This isn't like a mortgage, where you pay something back each month and you own the club outright after 25 years. It isn't even like an interest-only mortgage, where you pay off the interest each month and hope that the club can be sold at a profit after a few years. No, this is pretty much what Leeds did: they borrowed more money than they could afford to pay back and eventually they had to sell everything they had to stay solvent.
We are now, to put it simply, in a dreadful mess and it's increasingly difficult to fathom out exactly what Gillett & Hicks are doing. So far, their first 12 months in charge look like throwing away about £50m the club doesn't have and causing utter chaos off - and on - the pitch. Assuming the refinancing is completed, G&H will stand having not put a single cent of their own money into the club and we will be loaded with more debt than we're theoretically worth.
Originally posted by budski
I knew here was something about you i liked nef.
Either way round, I'm hoping for a late 3rd place push
Originally posted by Freeborn
Considering the inconsistent way Liverpool are playing and the way Everton are playing you will be lucky to finish fourth and thus qualify for The Champions League.
For Gerrard to speak out the other day about Liverpool's poor league finishing positions suggests there is definately conflict within the club.
Do you think they wil accept the bid?