posted on Jan, 21 2008 @ 07:20 PM
Pity about the result of the game tonight
We should have finished them off well before their goals.
Anyway, good protests from the crowd. The royal bank of scotland lost 7% in the crash today, and now the the Telegraph are reporting that the muppets
new loans might be failing to come to fruition.
I really, really do hope that is the case. From what I've read, these guys are going to put us right up sh!t creek without a paddle:
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
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.
£50 million given to banks in one year to finance loans so that these muppets can own our club with no risk to themselves. Placing the club with
massive debt that we might not be able to service.
Just one season without champs league football could push us over the edge.
This is before taking on another £300m loan to build the new stadium. It could be something like £60m on loans every year.
This could be suicidal for the club.
The club I love.
[edit on 21-1-2008 by melatonin]