Financial situation, doom & gloom reports etc

[Roboklopp]

We also need to take a very long very hard look at marketing & merchandise if we want to bridge the gap.

[peekay]

I remember reading somewhere that ManU and Arsenal the debt is around 10 times their operating revenue whereas for us it will be twenty times our operating revenue.

[sonsofthedesert]

I remember reading somewhere that ManU and Arsenal the debt is around 10 times their operating revenue whereas for us it will be twenty times our operating revenue.

That is based upon the smaller loan and not with this extra loan, this is why I think this story is garbage.

[Roboklopp]

I remember reading somewhere that ManU and Arsenal the debt is around 10 times their operating revenue whereas for us it will be twenty times our operating revenue.

If true, that is seriously scary.

[sonsofthedesert]

If true, that is seriously scary.

But once the new stadium is built and we are filling it every week it will be similar to utd.

[peekay]

That is based upon the smaller loan and not with this extra loan, this is why I think this story is garbage.

But if the above story is true , then wouldn't it be even worse with the bigger loan

[Rocket]

I remember reading somewhere that ManU and Arsenal the debt is around 10 times their operating revenue whereas for us it will be twenty times our operating revenue.

download a set of accounts off the liverpool site, read them, and you can find out for yourself

[Rocket]

It is a similar situation to Man United but with smaller figures. However, the main reason for building a new stadium with a 15,000 to 25,000 bigger capacity and more executive boxes is to substantially increase matchday revenue.

Probably a better comparison is Arsenal who borrowed heavily to build Ashburton Grove but their matchday revenue has increased massively (higher than the Mancs) so they can service the extra debt and still make more profit.

I'm not suggesting we will get the same matchday revenue as Arsenal or United but we will be a lot closer than we are now as both are probably generating twice as much as us each match.

fella, you're wasting your time here.

people hear the word debt and instantly think its a bad thing, i'm just gonna leave them all argue with each other

[Tatterdemalion]

So the sunday times reported it (the only people), bloomberg can't varify it as no one phoned them back IMMEDIATLY, the times couldn't contact G&H so it must be true.

They really think that RBS would take on the funding for a stadium which is supposed to be in place and also this debt as well, if numbers are to be believed RBS would be happy having £800m debt against a club that made approx. £30m last year. I do not see this being true.

I'm with you on this one. It makes perfect sense to borrow against the stadium, as it is a tangible asset (thus provides collateral) and promises steady future cash flows. However, accoring to the report, this debt has nothing to do with the stadium. They would want to secure the debt against something.

It is feasible that they would seek to secure it against future revenues (in which case, G&H are merely capitalising future revenues for spending now which is not entirely inappropriate), however, in the current financial climate I don't see RBS giving us an unsecured loan of that size. And it begs the question - what revenues? The ticket sales are funding the stadium (and the ticket sales contributed to the £30m revenue last year).

[Roboklopp]

But once the new stadium is built and we are filling it every week it will be similar to utd.

If we are to fill it every week, then I think we need to invest at least a quarter of the alleged £200m we're gonna save with the new new new stadium straight into the 1st team, no questions asked. Success get bums on seats & we are still not gonna win the lague as it stands.

[Rocket]

I'm with you on this one. It makes perfect sense to borrow against the stadium, as it is a tangible asset (thus provides collateral) and promises steady future cash flows. However, accoring to the report, this debt has nothing to do with the stadium. They would want to secure the debt against something.

It is feasible that they would seek to secure it against future revenues (in which case, G&H are merely capitalising future revenues for spending now which is not entirely inappropriate), however, in the current financial climate I don't see RBS giving us an unsecured loan of that size. And it begs the question - what revenues? The ticket sales are funding the stadium (and the ticket sales contributed to the £30m revenue last year).

good post

but don't let the media hype not scare people, it's got to be true, it was on bloomberg

[FatTony]

United are 700m in debt, at worst we'll follow their scenario. They're banking on huge revenues and the fact that they'll be optimizing our marketing potential. Huge risk, but it's doable.

Still, they did talk a load of bollocks when they first came in. I'll be curious to see how they explain that to us fans now.

Manu had already laid the foundations and are very well marketed around the world. We're not on their level on or off the pitch so this is a huge risk in comparison.

If these two twits didn't arrive with such vulgarity (the fistfull of dollars), I could forgive them, but they didn't so I won't.

Its one thing after the other with these two at the moment.

[Roboklopp]

good post

but don't let the media hype not scare people, it's got to be true, it was on bloomberg

Yeah, cos you're not one to talk ill-thought out nonsense are you? :whatever:

[sonsofthedesert]

fella, you're wasting your time here.

people hear the word debt and instantly think its a bad thing, i'm just gonna leave them all argue with each other

I am saying that the £500m is believable but I can't see RBS being willing to lend us £800m at the mo as we wont be able to get the extra revenue 3 and a half years to pay it.

[Roboklopp]

Manu had already laid the foundations and are very well marketed around the world. We're not on their level on or off the pitch so this is a huge risk in comparison.

If these two twits didn't arrive with such vulgarity (the fistfull of dollars), I could forgive them, but they didn't so I won't.

Its one thing after the other with these two at the moment.