Yarblockos wrote: ↑
Wed Jan 20, 2021 6:57 pm
theoriginalfatcat wrote: ↑
Wed Jan 20, 2021 6:45 pm
Darlofan97 wrote: ↑
Wed Jan 20, 2021 6:41 pm
lo36789 wrote: ↑
Wed Jan 20, 2021 6:31 pm
Darlofan97 wrote: ↑
Wed Jan 20, 2021 5:33 pm
No, it doesn’t have the same impact.
Taking on loans impacts our balance sheet, our liabilities as a business & our ability to lend in future, this won’t be the case if the National League takes on the loan.
League distribution is worth around c£15k each season for us, that is the maximum which we would be ‘hit’ by each season if the National League reduced this to £0 per season to claim this back to repay their loan.
We won’t be saddled with debt, the National League will be though, which is why I’m surprised they’re offering to take this all on to covert in to grants for clubs. Devil will be in the detail.
£15k of extra revenue to find every season for probably 10 years.
The impact on our P&L will be the same as a loan over the same timescale.
We are just paying back via an intermediary.
The impact on our P&L will be the same, but like I said, the impact is not the same on our liabilities and on our ability to lend in future (overdrafts, bank loans etc).
It should also be kinder on cash-flow given the timing of the league distribution payment (or lack of payment if this goes ahead).
We aren’t “just paying back via an intermediary”, as the National League aren’t acting as a broker for the loan. We will just not receive a league distribution payment.
The question for the club is, is sacrificing £15k per year for the next 10 years (or so) worth it to play out the rest of this season? I’m not convinced.
It would be a loan Darlofan97, you can't tart it up to be anything else.
It's like a loan but it's very defintely not a loan. Yes, we would be getting money that would eventually be clawed back by reduced league payments. As correcty stated, it is sacrificing 15K a year for the next 10 years. Importantly, it's not a loan in that it is not added to the balance sheet, thus clubs would not "owe" the money. Does not really seem worth it though.
It's like a loan in the way that it's money we owe that has to be paid back, and will be paid back. in fact it doesn't matter what it's called really as it's still a debt.
Let's look at it another way. If we go with this idea, for every year that the Boost The Budget campaign operates in the future, the fans will have to gift 15K just to get to the point where we would have been without the loan - oops sorry not loan.
I think as a club we've had enough of paying off others people's follies.
EDIT. Underneath is copied from leagues website where option 2 is referred to as a loan.
"The National League has held meetings with Member Clubs today to discuss further information regarding the Government’s Winter Survival Package.
A presentation was given to Member Clubs at today’s meetings to assess various options. The National League wishes to place on record its gratitude for the approach of Member Clubs at each meeting.
Interim General Manager of The National League, Mark Ives, has requested each Member Club to provide views on three points:
1. The operation of a Club Loan process.
2. The operation of a National League Loan.
3. A suspension to The National League 2020/21 season."
Mr Singh said this " I'm not expecting to get back any of the money I've already put in, I'm prepared to write it off for the future of the club. I'm not hanging in to make any kind of financial gain in the short or long term - if someone was prepared to come in and take the club off my hands, I'd be more than willing to discuss it"
Tamworth matchday programme 26 Nov 2011