posted Jun 20, 2009

Now the takeover is complete,hopefully the fans will turn out for eddie and the boys.bournemouth have got a great bunch of young lads hungry for success and i hope they can achieve that next season.up the cherries!

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posted Jun 21, 2009

Strange how all these 'money' people keep taking the club over and the debt never decreases!

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posted Jun 23, 2009

The only way to decrease debt is for the club to generate enough income (gates , transfer income, sponsorship) to pay back the loans.
Money put in by the owners is also debt !!!

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posted Jun 23, 2009

'Money put in by the owners is also debt !!!'

Sorry how did you work that one out?

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posted Jun 23, 2009

When you buy a club then you pay the purchase price of the shares to the previous share holders. The money goes in their pocket and not the club's bank account. This means that the club's financial situation is the same.

If they pump money into the club it is either that the club issues additional new shares or that the investor is lending money to the club which = DEBT !! They won't be giving it away and expect it back at some stage.

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posted Jun 23, 2009

What makes you think that the new owner will lend the football club money, is it just for cashflow purposes?

Surely if they own the asset (which is the football club) they will invest there own wealth into it and try and make it successful.

As for the loan arrangement (on your presumption) unless you have a guarantee or the company is Ltd liability the owner if the comany goes into liquidation can then extend to the owners personal wealth.

So if the company is struggling financially and it goes to the wall then the owners own wealth could be in jeopardy.

Therefore for a small club like Bournemouth it makes no sense for the owner to give them a loan from there personal wealth.

It would also from a balance sheet perspective be negative as there will be more liabilities than assets (as we don't own our stadium)!

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posted Jun 24, 2009

'As for the loan arrangement (on your presumption) unless you have a guarantee or the company is Ltd liability the owner if the comany goes into liquidation can then extend to the owners personal wealth.'

That is exactly what happened to Paul Baker! Over the last 18 months his personal wealth has more or less evapourated.

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posted Jul 1, 2009

Murray has loads of money to help us out and keep investing, he had stakes in City when Sinatra brought them out and got LOADS for them.

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