[Albion] Albion borrowing on future tv money ?

[scooter1]

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

It’s by no means advice. It’s a gamble, albeit a very small one. And for me, so far it’s paid off

 

[Bold Seagull]

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

Well, hopefully you had a fixed rate of interest payable on the loan otherwise that equation has changed pretty rapidly over the last month or so.

 

[scooter1]

Well, hopefully you had a fixed rate of interest payable on the loan otherwise that equation has changed pretty rapidly over the last month or so.

Yep. I had to accrue over £295 in winnings over a 3 year period to cover the interest. As mentioned, it was a very low level gamble, and one that I could afford(as every gamble should be)

 

[dazzer6666]

I'm too thick to understand this.

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

Not always. One of the most active credit departments I’ve ever seen in a bank was when I worked in private banking - extremely wealthy individuals leveraging assets to invest in more assets, to make more money. Completely normal - safe business for the bamk because of the asset-backing, cheap rates for the customer for the same reason.

 

[Marshy]

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

People with money never use their own money. Unless they absolutely have to.

 

[El Presidente]

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

For a business that has lost £241 million in the last decade the tax deductible status of the interest is an irrelevance.

Suspect it is a rollover of a previous borrowing arrangement. Albion have total financial liabilities of £411 million but 'only' £37 million of that is owed to the bank.

 

[B-right-on]

For a business that has lost £241 million in the last decade the tax deductible status of the interest is an irrelevance.

Suspect it is a rollover of a previous borrowing arrangement. Albion have total financial liabilities of £411 million but 'only' £37 million of that is owed to the bank.

Ah ok, that's totally different then. Not been in that position (fortunately) so not sure about the tax side of it in those circumstances.

 

[Garry Nelson's Left Foot]

For a business that has lost £241 million in the last decade the tax deductible status of the interest is an irrelevance.

Suspect it is a rollover of a previous borrowing arrangement. Albion have total financial liabilities of £411 million but 'only' £37 million of that is owed to the bank.

For an economic illiterate like me does financial liability mean debt? And if it does and only 37m is to the bank does that mean the rest is to Bloom? And does it mean that if we sold a player for 37m we could pay off that debt and only owe money to Bloom?

 

[El Presidente]

Correct, the player sales '*Could* mean that the non-Bloom debt is repaid, but I would caution that
(a) We don't know the extent of the day to day losses in 2021/22 (and they were £1m a week the previous season) and
(b) The player sales are on credit, so although Ben White may have been sold for £50m, the club may only be receiving that sum over a period of years.