[Albion] Albion borrowing on future tv money ?

[Springal]

Interesting from @El Presidente



Giving Bloom a breather for some short term cash flow ?

 

[portslade seagull]

Maybe that is why we seem to be unloading at our present rate.

 

[brightn'ove]

Completely normal

 

[A1X]

Does this mean if we go down we’re screwed?

 

[Springal]

Completely normal

Agreed - but what’s the rate on 10s of Millions ? Was just a bit surprised we’d be taking commercial lending rather than from Bloom.

That said I believe most of his wealth is from commercial property and with the impact of covid not surprised if he’s taken a hit personally last few years

 

[B-right-on]

Totally normal business operation. Interest is tax deductable and until recently, borrowing was dead cheap.

 

[Easy 10]

Normal business practice I suppose, but is it not a slightly dangerous assumption that we'll still be getting Premier League TV money the season after this one ?

 

[Nobby Cybergoat]

I think it's more likely to be with cash availability rather than Blooms total amount of cash. When you're in property it's not like you can't get at quick money, but at times it's more advantageous to sit and wait. I reckon Tony finds it more profitable to hold his properties and borrow commercially when he needs to.

 

[LANGDON SEAGULL]

Normal business practice I suppose, but is it not a slightly dangerous assumption that we'll still be getting Premier League TV money the season after this one ?

Think this is taking into consideration the parachute payments

 

[Weststander]

The club always have borrowing facilities with the bank. Numbering 14 in the TB post planning permission era, each charged on assets of the club. The difference this time, the long lists of assets and undertakings include TV and radio rights.

I wonder if banks are now insisting on this when lending money to clubs?

 

[Motogull]

I'm too thick to understand this.

Its not a good look is it? You borrow money if you're broke don't you?

 

[Brian Fantana]

I'm too thick to understand this.

Its not a good look is it? You borrow money if you're broke don't you?

Super rich individuals borrow money to buy assets, such as houses. They’d undoubtedly have the money to buy those assets outright, but it makes more sense to spread that money around multiple investments and grow their wealth based on the difference between interest earned on those investments versus interest paid out on the borrowing.

 

[Rookie]

I'm too thick to understand this.

Its not a good look is it? You borrow money if you're broke don't you?

Or your owner can make more money by investing in other things than the interest being charged by the bank (this isn’t a new thing)

 

[scooter1]

Or your owner can make more money by investing in other things than the interest being charged by the bank (this isn’t a new thing)

This.
in simplistic terms, I borrowed 5 grand on a 3 year loan to put towards my current car. I put the 5 grand I was going to use into premium bonds, and so far have earned more in prizes than I have paid in interest

 

[PILTDOWN MAN]

This.
in simplistic terms, I borrowed 5 grand on a 3 year loan to put towards my current car. I put the 5 grand I was going to use into premium bonds, and so far have earned more in prizes than I have paid in interest

f***ing hell lucky you

 

[Crawley Dingo]

Or your owner can make more money by investing in other things than the interest being charged by the bank (this isn’t a new thing)

Its called high gearing, borrowing at low interest then lending at higher and pocketing the difference. I know someone who did it with student loans, it is a bit of a gamble but TB is pretty good at that.
Story is a nothing burger.

 

[GingerBeerMan]

Its called high gearing, borrowing at low interest then lending at higher and pocketing the difference. I know someone who did it with student loans, it is a bit of a gamble but TB is pretty good at that.
Story is a nothing burger.

I wish I did it with student loans. AVG interest of about 2%, average Nasdaq return over the same period about 10%

 

[zefarelly]

This.
in simplistic terms, I borrowed 5 grand on a 3 year loan to put towards my current car. I put the 5 grand I was going to use into premium bonds, and so far have earned more in prizes than I have paid in interest

Exactly. I borrowed to buy a car, used it a year, sold it on at a profit and paid off the loan, made a grand and a free car for a year . . . . Very comon in property

I have a bit of inheritance due . . . .it'llearn twice as much in the bank as I'm paying off my mortgage At less than half the rate. For the next 2 years.

 

[Icy Gull]

Somebody much richer than I’ll ever be once told me that using OPM was the key to making a fortune. Other Peoples Money

 

[Dick Swiveller]

This.
in simplistic terms, I borrowed 5 grand on a 3 year loan to put towards my current car. I put the 5 grand I was going to use into premium bonds, and so far have earned more in prizes than I have paid in interest

That could be the worst financial advice since the beginning of time. Or Kwasi talking to Truss.