tenpoless
No 6-pack, just 2Pac
SJR
More debt probably.One minute, we're needing to raise funds through player sales. Now here we are, possibly about to spend well over 100m on players.
Where is it coming from?
I suspect they have a budget for each summer (rightly so) and have lost faith FDJ will come this summer meaning some money is now free up.One minute, we're needing to raise funds through player sales. Now here we are, possibly about to spend well over 100m on players.
Where is it coming from?
Not too much. About 90m in the bank as at the end of last published quarter (Q3). Had about 100m on the company credit card as well ( Covid legacy) which kinda leaves us cashless really. Owe other clubs about 100m net for players bought prior to this transfer window; that's the bitch of paying by installment- it eats into current and future net spend.The finances are public, we used to have loads of posters that were all over the club finances. But I thought we didn't have that much cash these days?
Either they're borrowing or spending money that they know we'll be getting back through sales, perhaps Rashford, Ronaldo, Mctominay or even Maguire.
Or they're spending some money that they get from the sale of a minority share of the club.
Third quarter it looks lke 95m. The drew down on revolving credit 60m in 2021£100m.
As for where this has come, future revenue. I suspect the Glazers looking for a minority stake sale are looking to use some of that back into the club.
That or they are looking to sell up and want the club in a healthy state
Ok thanks for the explanation. So basically credit facilities.Not too much. About 90m in the bank as at the end of last published quarter (Q3). Had about 100m on the company credit card as well ( Covid legacy) which kinda leaves us cashless really. Owe other clubs about 100m net for players bought prior to this transfer window; that's the bitch of paying by installment- it eats into current and future net spend.
But the club is still a pretty good cash generator, and the cash position will continue to improve. A lot will depend on how salaries fair in the current year financial year. A big reduction (no cl and a lot of high earners gone) will boost our cash position. A player sale or two would help immediately.
The club has increased its upper limit on the company credit cards to about 250m (after the Q3 reporting date) and though the credit cards (revolving credit facilities) aren't designed for long term borrowing, it would support a substantial outlay this window as long as payments are made by installment over a number of years. That way the club is really borrowing from future cash availability (future transfer budgets). A massive spend now would require an easing off in future transfer windows.
Yeah, a big spend is doable without a loan or selling a minority stake.
I think I read somewhere that we could spend close to £500m without FFP being an issue.Ok thanks for the explanation. So basically credit facilities.
Do you have any idea what our allowance is under FFP?
Seems the Glazers are upto their old tricks of piling more debt into the club in order to buy players and keep hold of the club through fan satisfaction? I imagine once upon a time it would have been feasible for us to spend big without using credit? If other clubs can do it under FFP then that means they've generated enough income Vs expenditure to do so?
I'd be more concerned with cash flow than with FFP. Hopefully Cliff Baty (the CFO) knows what he's doing.I think I read somewhere that we could spend close to £500m without FFP being an issue.
That's what I don't get. FFP is based on actual income Vs outgoings isn't it? So should we not have £500m in the bank in that case? Where is this money going?I think I read somewhere that we could spend close to £500m without FFP being an issue.
^ All of this.cashflow has never been as issue for us, but it might be some day if we keep going like we are
the worrying thing is we splash the cash based on a couple of awful results, rather than any meaningful plan
we just need to get these cretin owners out of the club
Agreed. Club is too reactive rather than proactive.cashflow has never been as issue for us, but it might be some day if we keep going like we are
the worrying thing is we splash the cash based on a couple of awful results, rather than any meaningful plan
we just need to get these cretin owners out of the club
Obvious answer. They've always done this. Throw the fans a bone to shut them up for a while.They're feeling the heat. They know this gets fans off their backs.
Well put. Lets hope they're trying to protect or inflate the value of the club with a view to a sale.The problem with the Glazers has never been about their reluctance to spend, it has been about their total disregard and disinterest in investing their own money into strengthening the organisational underpinnings of this club such as a proper and well thought out recruitment and scouting infrastructure. For the Glazers, money appears to be the band aid solution rather than the beginnings of something sustainable.
......eeeeeewMurtough pulled his lever and spunked up 100m
Amencashflow has never been as issue for us, but it might be some day if we keep going like we are
the worrying thing is we splash the cash based on a couple of awful results, rather than any meaningful plan
we just need to get these cretin owners out of the club