on June 16, 2025, 2:33 pm, in reply to "Yeah they've absolutely got the wrong end of the stick there!"
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We've definitely still got plenty of debt - but my (very basic!) understanding of the key difference that TFG/Roundhouse have brought is that they have paid off all the high-interest "pay day" loans (that the previous regime had been forced to take on as fewer and fewer reputable institutions were willing to lend to us!) and reconsolidated that into a deal with much more reasonable interest rates, and with a more reputable company - so the debt is still there, however it is now "manageable" debt, whereas before we were paying hand-over-fist and thus haemorrhaging money.
Disclaimer: The above might all be nonsense - I'm a business dunce - but hopefully it's not far off! Previous Message
....but I remember reading fans saying we have no/little debt for the stadium and thinking they must have the wrong end of the stick there. Previous Message
A lot of the build costs were effectively paid by Moshiri so payments are nowhere near what they should be.
How much operating cost does GP require when they will scale it down? They don't need as much policing and stewarding.
And how does construction cost debt count against PSR? Why is that not an infrastructure cost?
I have seen estimates of a 70 million increase in revenue. Even at 50 million I just can't figure out how there's no money. Why did we build BMD if net result is 0? Will it take decades before stadium is actually worth it? Previous Message
We are still very PSR restricted until the end of this financial year on 30 June so we can negotiate but probably not formally complete deals until after that eg Alcaraz.
1 July onwards we will have some headroom from higher projected revenues at BMD (matchday, other use and commercial boost) but we will also have higher operating costs running two stadia. Construction debt interest costs will also become an operating cost counting against PSR the second we start using it. The debt reduction and restructure by TFG helps somewhat but a significant proportion of the revenue boost will be soaked up by these ‘new’ PSR costs.
PSR will clearly remain a constraint on us to some degree in respect of amortisation and wages/squad size unless and until we win things/play in Europe and/or attract significantly more and more lucrative commercial sponsorship.
A massive net transfer splurge is unrealistic in terms of PSR costs (amortisation, wages, deferred interest) as we will need to keep that element of our cost base similar to last year plus any net income boost. We should be less cash constrained so we might be in play for the sort of deals we missed out on in recent years due to needing heavily deferred payment structures. Frees and loans will probably still play an important role bulking the squad out for a year or two yet. Previous Message
New players coming in late. A poor start to the season, a decent stretch along the way to reach safety.
Would be nice to come out roaring and ready.
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