Are we going to go out of business

[blockhseagull]

First and foremost I believe that we will struggle to avoid a 2nd relegation next season if we go down this, but that is a personal view as I believe that the selling of players is fairly certain either way just to keep our head above water.

Would the debt be so much more difficult to manage and repay if it were £9.1m than £9m?

Why will we struggle to avoid another relegation ?

 

[Early Doors]

As I have said many times we are reputedly in debt to the tune of approx £9m so another £100k is neither here nor there but could stop it becoming £10m or worse at this time next year.

Dear Bank Manager

Please be aware that I will not be paying my loan installment of £1,000 this month. Instead I Will be putting it on a dead cert in the 3.50 at Haydock. If it comes up I will be able to pay off my loan.
If it doesn't, well £1,000 on a loan of £2 million is neither here nor there!
I am sure you will agree it is a risk worth taking.

Should work.

 

[BensGrandad]

Why will we struggle to avoid another relegation ?

IMHO the better players will have to be sold to just exist next season if we lose the revenue that is expected from Sky TV , drop in season ticket renewals, lower attendances from away support, possible lower home support as well and increased expenses due to travel to teams in Div 1.

Early Doors this is a totally different scenario. It is more akin to your credit card and paying the minimum repayment each month until such times as you are able to pay off a large sum.

If you owe £9,000 your minimum payment will be about £270 per month based on most credit cards of 3% of balance. If you spend £900 and increase that debt to £9.900 the repayment would be £297 but you would have the same wage next year to pay it back.

If however you didnt spend the extra £900 and your wage dropped by 11.1% (sky tv revenue drop) your repaym,ent on the original £9,000 would still be £270 but you would have less wages to pay it so life would be more difficult possibly disastrous.

In the worse case you spent the £900 and your wage dropped by 11.1% the chances are you wouldn't be in any worse financial difficulty and if bankruptcy or IVA was choice the extra debt would make no difference whatsoever.

 

[TrevorDove]

Last time we went up didn't Knight state that it cost the club MORE to play in the Championship rather than Div 1?

 

[blockhseagull]

IMHO the better players will have to be sold to just exist next season if we lose the revenue that is expected from Sky TV , drop in season ticket renewals, lower attendances from away support, possible lower home support as well and increased expenses due to travel to teams in Div 1.

Early Doors this is a totally different scenario. It is more akin to your credit card and paying the minimum repayment each month until such times as you are able to pay off a large sum.

If you owe £9,000 your minimum payment will be about £270 per month based on most credit cards of 3% of balance. If you spend £900 and increase that debt to £9.900 the repayment would be £297 but you would have the same wage next year to pay it back.

If however all went wrong and your wage dropped by 11.1% (sky tv revenue drop) your repaym,ent on the original £9,000 would still be £270 but you would have less wages to pay it so life would be more difficult.

What players though.... ?

Can't see many clubs interested in anyone apart from maybe Carole...who we could probably live without anyway

 

[BensGrandad]

I have just amended my last post a little.

 

[The Large One]

First and foremost I believe that we will struggle to avoid a 2nd relegation next season if we go down this, but that is a personal view as I believe that the selling of players is fairly certain either way just to keep our head above water.

Would the debt be so much more difficult to manage and repay if it were £9.1m than £9m?

Who says we have to sell players? You're making that bit up. And how much would our squad be worth if we did? Not much.

More imporantly, the club's debt is nowhere near £9m. That seriously f***ing annoys me when you keep posting that piece of horsehit. It is pure vicious spite on your part to post that.

 

[BensGrandad]

Who says we have to sell players? You're making that bit up. And how much would our squad be worth if we did? Not much.

More imporantly, the club's debt is nowhere near £9m. That seriously f***ing annoys me when you keep posting that piece of horsehit. It is pure vicious spite on your part to post that.

For once in your life get off of your high horse and try to seperate the wood from the trees.

We have to sell players to exist every season until such time as LDC f..k off and we build and get to Falmer. So why should next year be any different.

The figure £9m was the figure shown in the last audited accounts unless I received a different set to you from Companies House. If I have misread the balance sheet, which is unlikely because unlike the vast majority on here I can read a balance sheet, then I would be the first to apologise and say I was wrong.

What motive do I have for 'pure vicious spite'. The consortium that I was involved with and that would have had us playing at Beeding now is long gone dead and buried and not likely to surface again.

I am the first to acknowledge what DK has done but do not think that he has the requirements to take us on further and as such will sell up when Falmer is decided, in order that we can build the stadium.

All I want is for my grandson to still be watching BHA when he is my age and unless Falmer is sorted out very soon and somebody with some money comes in to buy us that will not happen. BHA will die during my lifetime. We cannot continue by living hand to mouth and robbing Peter to pay Paul all of the time.

 

[seagullsovergrimsby]

With all these facts and figures flying about my head is spinning. It's all well and good to say we have received x amount in transfer fees but no one has taken into consideration the tax returning to HM Government's coffers. Take for instance the £1.5m for Bobby , a sell on clause meant giving Brizzle £500k of that and after tax the figure dwindles even more. Realistically the debt will be there until we become established at Falmer so until then the club has to be prudent.

 

[bailey]

11.1% (sky tv revenue drop)

This thread is almost verbatim the one from earlier in the week and I almost can't be bothered to post but I bit anyway.

Have you actually managed to confirm this enormous drop in the Sky TV money or is it still hearsay?

 

[bailey]

no one has taken into consideration the tax returning to HM Government's coffers.

The lack of profit and kind of debts the club runs with means tax isn't a major issue. There's just the old capital gain here and there, and of course the £360k tax liability parting gift from Bellotti and co over the sale of the Goldstone.

 

[O Lads]

If we don't get Falmer built, i feel as though it's the end for BHAFC

 

[larus]

All I want is for my grandson to still be watching BHA when he is my age and unless Falmer is sorted out very soon and somebody with some money comes in to buy us that will not happen. BHA will die during my lifetime. We cannot continue by living hand to mouth and robbing Peter to pay Paul all of the time.

That is absolute crap.

This 'debt' of £9m, how much is made up of 'loans' from Fat-Boy Slim, Des Lynam, DK etc. Do you know,? If you don't, I would guess that a lot of the 'debt' is in the form of interest-free or low interest loans from members of the board with a passion for the club. These may get repaid at a later date, they may not.

As for dying, FFS, that is ludicrous. Worst case scenario. We lose Falmer and end up as a struggling team in League 2.

You have a go at TLO, then post total crap about going out of business. You're definately a 'half-empty' type of guy aren't you.

DK should be congratulated for doing the tough thing and keeping the spending contained. I don't hear Mark McGhee blaming DK for not having money; he does cite the limited playing budget as a factor, but he also blames the facilities.

 

[blockhseagull]

I just get fed up with all the scaremongering and profits of doom on here.

No-one knows the exact financial state of the club - FACT

Some people may claim to have an idea, but that is all .

At this moment in time it is all hearsay and speculation...and until the time comes that DK says there is a problem then it will remain so.

I'm not saying it isn't important because of course the long term future of our club is important to every single one of us, but the continued whinging and whining of some on here is beginning to wear thin.

I tend to agree that DK has not got the financial clout to take us any further than Falmer being given the green light, however he is a man that loves the club and will not allow it to be harmed again in the way Bellotti and Archer did. Would you prefer that he just sold up to anyone with a bit of cash but gives sweet FA about the club.

There are not many Abramovich's about, not only in terms of finance but also in terms of his obvious love for his club..... for every Abramovich there are 10 Romanov's. So lets respect DK for what he has done for the club and respect that he will do the best for BHAFC and sell when it is best.

 

[seagullsovergrimsby]

That is absolute crap.

This 'debt' of £9m, how much is made up of 'loans' from Fat-Boy Slim, Des Lynam, DK etc. Do you know,? If you don't, I would guess that a lot of the 'debt' is in the form of interest-free or low interest loans from members of the board with a passion for the club. These may get repaid at a later date, they may not.

Agreed , a lot of the debt must be tied to these loans, where board members are happy receiving a little interest from their investment in the club. Hypothetically speaking if the club borrows £25m as its share towards building Falmer does this become accumulated debt or will it be written down for instance as repaying capital/interest on a yearly basis over 40 or 50 years? ie paying back £1.5m a year ?