how can any company survive....

[turienzo's lovechild]

now i'm not a businessman, i know naff all about how businesses run, but surely a company would stuggle to operate

http://news.bbc.co.uk/sport1/hi/football/teams/a/arsenal/5362764.stm

when it is £262.1m in debt

?

 

[Ccider]

How do ordinary people survive with a mortgage?

It's just debt secured against property (stadium) and assets (players).

Mind you some players are debatable assets!

 

[Mrs Coach]

Incredible isn't it? Makes me feel good about the Brighton deficit!

 

[Da Man Clay]

The only problem being with us is that we dont have any real assets.

 

[tedebear]

now i'm not a businessman, i know naff all about how businesses run, but surely a company would stuggle to operate

http://news.bbc.co.uk/sport1/hi/football/teams/a/arsenal/5362764.stm

when it is £262.1m in debt

?

Think about the other side though - assets!! If they sold all their assets (players, stadium, training ground etc.) then they'd probably cover that debt easy.....So its just a figure on paper really... (Not sure what they own tbh but I'm sure they own more than us)

Besides their gate takings would be considerably grand enough to help their cash flow...

 

[ade28uk]

How is football a profitable business to invest in to?

The only clubs I can think of who make any money are Man Utd, Real Madrid.

The only way to bring debts down is to pay less money to the players.

 

[desprateseagull]

BHA may also be saving, if they dont own withdean- there's insurance to pay for the buildigs etc, security staff, utilities.

i understoof the club just rent the place?

 

[Tom Bombadil]

It's not just about the asset, it's also about the income stream.

So Arsenal can afford to have such big debts because

a) They have an asset to secure the loans against

b) The income from 60 thousand punters a week means they can afford the repayments.

 

[Monsieur Leclerc]

I suspect the HIghbury scheme will annihilate some of that debt and as everyone else has mentioned, assets, turnover will more than cover that.