Jump to content

Recommended Posts

I’m a bit confused as to why we would have staggered the payments for Pope if it doesn’t have a FFP benefit and Burnley needed the cash.  Surely the most effective way to beat FFP in the long term would be an interest free shareholder loan and paying full transfer fees upfront at a discounted prices.

Link to post
Share on other sites

28 minutes ago, Eveready said:

I’m a bit confused as to why we would have staggered the payments for Pope if it doesn’t have a FFP benefit and Burnley needed the cash.  Surely the most effective way to beat FFP in the long term would be an interest free shareholder loan and paying full transfer fees upfront at a discounted prices.

 

How does an interest free shareholder loan help with FFP?

 

My understanding is paying in instalments has no impact on FFP, either positive or negative. However, from a cash flow perspective if you can spread payments then surely that's sensible, it's how the majority of clubs pay for players.

 

Only Ashley seemed to do the pay in full for a while and that was to then justify his limited spending.  

 

 

Link to post
Share on other sites

8 minutes ago, Geordie Ahmed said:

 

How does an interest free shareholder loan help with FFP?

 

My understanding is paying in instalments has no impact on FFP, either positive or negative. However, from a cash flow perspective if you can spread payments then surely that's sensible, it's how the majority of clubs pay for players.

 

Only Ashley seemed to do the pay in full for a while and that was to then justify his limited spending.  

 

 

It doesn’t directly but if Burnley paid say £800k for the factoring then surely we could have got £500k off the transfer fee and paid upfront.  Burnley would receive £300k more and we would reduce our FFP burden.  A shareholder loan would be if we don’t have the cash in our bank to pay for all the transfer fees upfront this way.

Link to post
Share on other sites

33 minutes ago, Eveready said:

It doesn’t directly but if Burnley paid say £800k for the factoring then surely we could have got £500k off the transfer fee and paid upfront.  Burnley would receive £300k more and we would reduce our FFP burden.  A shareholder loan would be if we don’t have the cash in our bank to pay for all the transfer fees upfront this way.

I think for Burnley; the concerns aren’t ffp. They are cash flow, iirc Burnley we’re bought using loans and likely with business plan which involved being in the premier league. 

Link to post
Share on other sites

12 minutes ago, r0cafella said:

I think for Burnley; the concerns aren’t ffp. They are cash flow, iirc Burnley we’re bought using loans and likely with business plan which involved being in the premier league. 

 

 

That is a thing with owners of many sports franchises. Cash flow can be an issue and must be managed. Premier league money is huge so they better get back next year.

Link to post
Share on other sites

3 hours ago, mighty__mag said:

https://www.google.com/amp/s/www.mirror.co.uk/sport/football/burnley-face-uncertain-future-premier-27044851.amp

 

Does anyone consider Burnley may have asked for Pope's installments rather than lump sum.

 

 

Unless I'm misreading it, the paperwork lodged at CH is Burnley taking out a loan and using the future installments in the Pope transfer as collateral - basically "You know we can pay this loan off because we're getting these payments over the next three years".

 

Seems to me that if they'd got the £10m up-front they'd have been better off. 

Link to post
Share on other sites

8 hours ago, duo said:

This would be amazing he is genuine wonderkid

 

i do like this policy of the next up and coming Haaland in Sesko and the next Mane in Kamaldeen

 

i also think it’s great for the youngsters themselves as Howe would develop them well

 

At this stage of our journey I defo would rather be the Borussia Dortmund or RB Leipzig model than the PSG / Man City model. 
 

in a few years we can supplement these maturing youngsters with a sprinkle of world class experience and watch them

fly

Link to post
Share on other sites

On the drink up town this afternoon so printed out some anxiety surveys to fully gauge the transfer induced stress levels through out the city. I'm currently at debilitating myself but hoping that a few pints and some solid transfer rumours might get me down to severe.

Anxiety-Scale-From-Minimal-To-Debilitating.jpg

Link to post
Share on other sites

9 minutes ago, kingxlnc said:

At this stage of our journey I defo would rather be the Borussia Dortmund or RB Leipzig model than the PSG / Man City model. 

Agree 100%

 

We also have an advantage over Dortmund & Leipzig in that we are in the Premier League.

 

Obviously in the position we are now that isn't enough but if we can consistently offer European and Premier League football, it gives us a better chance than those two clubs of holding on to our talented players. 

Link to post
Share on other sites

8 minutes ago, WillingtonMag said:

On the drink up town this afternoon so printed out some anxiety surveys to fully gauge the transfer induced stress levels through out the city. I'm currently at debilitating myself but hoping that a few pints and some solid transfer rumours might get me down to severe.

Anxiety-Scale-From-Minimal-To-Debilitating.jpg

 

I'm at 4. Severe. Was going to go out to the local today but I just cannot face it. Think that falls nicely under the "Isolation" bit. I'm just gunna shut the curtains and go to bed. God I Hope we sign someone soon.

Link to post
Share on other sites

11 minutes ago, WillingtonMag said:

On the drink up town this afternoon so printed out some anxiety surveys to fully gauge the transfer induced stress levels through out the city. I'm currently at debilitating myself but hoping that a few pints and some solid transfer rumours might get me down to severe.

Anxiety-Scale-From-Minimal-To-Debilitating.jpg

I'm in at about 0.5, checking for transfers slightly more than usual, no feelings of anxiety, able to get things done (in a manner, I'm a lazy git), no physical symptoms.

 

I know a couple of 2s, one mate and one  workmate.

Link to post
Share on other sites

6 hours ago, r0cafella said:

I think for Burnley; the concerns aren’t ffp. They are cash flow, iirc Burnley we’re bought using loans and likely with business plan which involved being in the premier league. 

I agree.  I also think that for Burnley the cash flow is a bigger issue than FFP.

 

Since Burnley paid for factoring then they almost certainly would’ve accepted a lower fee.  It would have been worse for us from a cash perspective but better from FFP, and if FFP is our only financial constraint then we should’ve taken the hit and given a shareholder loan to the club if required.

 

I’m sure there’s a good reason we structured it in instalment, I’m just struggling to think of why.

 

Overall I think we should be doing everything to keep our FFP burden as low as possible.

 

I’m not suggesting in any way that we should do this, especially such a professional organisation like PIF, but even thinking of things like giving say Neymar a percentage of the club ownership (but no seat) as a signing bonus.  Obviously that particular scenario probably wouldn’t work as there would be a monetary value of the shares but you could also argue that there is no direct cost to the club other than the legal fees.

 

Link to post
Share on other sites

52 minutes ago, WarrenBartonCentrePartin said:

How’s it interesting in itself you slaphead doylem?

 

 

Presumably because it's 2-3 months later and the interest is still there, or that it's been that long and nothing's further forward.

Link to post
Share on other sites

5 minutes ago, Kid Icarus said:

Presumably because it's 2-3 months later and the interest is still there, or that it's been that long and nothing's further forward.

I mean, he’s one of a number of names right? He wasn’t the first choice so it makes no sense to just go in and negotiate with them. 

Link to post
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...