QPR secure a £27m loan from Barclays...

[AZ Gull]

Where would that put us with our £100m+ debt?

Quite.

Debt in and of itself is not necessarily a bad thing; it all depends upon what the money is used for (ie whether it is used to improve the long-term sustainability of a club's finances, such as building a brand new, state of the art stadium; or used to fund hideously over-inflated player wages and transfer fees).

You can argue all you want about the rights and wrongs of FFP, but the fact that those clubs opposing it are the ones who are risking their short- and long-term financial futures on a mad dash for the Premier League "riches" suggests that it has probably hit the nail on the head.

 

[Mowgli37]

Unbelievable. If they don't get promoted soon they will be utterly screwed, even then they will need a major restructuring.

 

[Pavilionaire]

So it's not enough that parachute payments are getting bigger and over 4 seasons, but clubs can now mortgage them to literally buy themselves back into the Prem.

 

[Don Quixote]

No wonder the banks went bust

 

[Mutts Nuts]

... against their parachute payments and next season, or the '15-'16 season, potential Premier League TV revenue!!!
Following on from a £15m loan, again with Barclays, a year ago.

Scroll down for the English version

http://www.fotballsonen.com/qpr-med-nytt-banklan/

QPR are a no brainer to win the play offs,FFP is a fcucking joke

 

[Rugrat]

Where would that put us with our £100m+ debt?

I take your point but debt to a lifelong supporter and pretty well the only shareholder with a zero repayment plan isn't quite like debt to Barclays Bank who will be charging interest and have a rigid schedule of repayment

 

[Mellor 3 Ward 4]

Unbelievable.

Something isn't right with that BANK at the moment

Edited for you.

Have to they learnt their lesson?

 

[OzMike]

'Arry's promotion bonus in place then.

 

[seagurn]

I'm surprised nobody is questioning the fact the loans are secured against Premier League TV rights.

How can Barclays justify that as a sound investment.

Maybe thats why its called "THE BARCLAYS PREMIER LEAGUE" so they can have a say who's in it

 

[Surf's Up]

There's going to be a motorway pile up at the end of the season!

 

[spring hall convert]

QPR vs Portsmouth in the Conference will be a big game.

 

[Creaky]

Right at the end of that article, almost as an aside, is the following, "The loan is personally guaranteed in full by the club’s shareholders"

So it is not the club that is at risk if the loan cannot be serviced but the shareholders.

 

[Triggaaar]

QPR vs Portsmouth in the Conference will be a big game.

With both sets of fans singing 'you're not a big club anymore'

 

[Baldseagull]

Right at the end of that article, almost as an aside, is the following, "The loan is personally guaranteed in full by the club’s shareholders"

So it is not the club that is at risk if the loan cannot be serviced but the shareholders.

Club is not at risk directly from the bank, but those shareholders will sell off assets of the club ahead of seeing their personal fortunes raided. They get stuck with the bill if the club can't pay, but the club will be stripped first.

 

[Tricky Dicky]

Club is not at risk directly from the bank, but those shareholders will sell off assets of the club ahead of seeing their personal fortunes raided. They get stuck with the bill if the club can't pay, but the club will be stripped first.

Isn't Fernandes a billionaire - don't quite see why he'd need to take out a loan if he's that bothered about the club.

 

[mwrpoole]

Isn't Fernandes a billionaire - don't quite see why he'd need to take out a loan if he's that bothered about the club.

Perhaps this is a way to avoid their potential multi-million £fine if they get promoted this year. Need an accountant to explain how it would show in their accounts but if it effectively reduces their losses, then it could be quite a clever way of getting around the FFP rules.

 

[Creaky]

Club is not at risk directly from the bank, but those shareholders will sell off assets of the club ahead of seeing their personal fortunes raided. They get stuck with the bill if the club can't pay, but the club will be stripped first.

The bank must be satisfied that the shareholders are "good" for the money outside of any club assets otherwise they wouldn't accept the personal guarantees.

When I personally guaranteed a company loan I had to show that I had assets separate from the company to cover the loan.

 

[sten_super]

Perhaps this is a way to avoid their potential multi-million £fine if they get promoted this year. Need an accountant to explain how it would show in their accounts but if it effectively reduces their losses, then it could be quite a clever way of getting around the FFP rules.

I'd imagine it would show up as the shareholder injecting capital - and there are limits to how much capital they are allowed to inject within the bounds of FFP (isn't it that, plus the permissible losses, that add up to the £8m figure that gets bandied about?).

 

[Baldseagull]

The bank must be satisfied that the shareholders are "good" for the money outside of any club assets otherwise they wouldn't accept the personal guarantees.

When I personally guaranteed a company loan I had to show that I had assets separate from the company to cover the loan.

I understand that, but you probably would not sell your house to cover the debt if you could sell the company office first. All the personal guarantee means is that the bank will get paid everything it is owed, even if after stripping the club of all it's assets there is money owed. It certainly does not mean that the clubs assets are safe and only the shareholders assets are at risk. It is the club that owes the money, the shareholders will be pursued for the money if the club defaults.

 

[Biscuit]

QPR vs Portsmouth in the Conference will be a big game.

Potential relegation decider!