QPR take out £15M (or was it 150 million) loan for a new stadium despite relegation

[The Leveller]

It's not a 150m loan people the books showed a 15m loan from Barclays not 150m. Like I said the guy tweete him saying "so a stadium costs 15m?" He said no add a zero. So why are people even saying its a 150m loan when clearly it is only 15m with the stadium costing around 150m.

I will suggest that the loan is more than £15m, what we are seeing are the first of various stages of draw down. 1) Design fees, 2) Land purchase and planning fees 3) Construction payments at various stages of completion.

The owners will not be putting up anywhere near the majority of the costs, business man don't do this.

TF in reacting to the tweet revealed the outline costs and plans.

[vblockranger]

I will suggest that the loan is more than £15m, what we are seeing are the first of various stages of draw down. 1) Design fees, 2) Land purchase and planning fees 3) Construction payments at various stages of completion.

The owners will not be putting up anywhere near the majority of the costs, business man don't do this.

TF in reacting to the tweet revealed the outline costs and plans.

[vblockranger]

Crossrail at Park Royal ...reckon its bound to be thereabouts.

[Rangers77]

I will suggest that the loan is more than £15m, what we are seeing are the first of various stages of draw down. 1) Design fees, 2) Land purchase and planning fees 3) Construction payments at various stages of completion.

The owners will not be putting up anywhere near the majority of the costs, business man don't do this.

TF in reacting to the tweet revealed the outline costs and plans.

Good points. We are where we are; owned by whom we're owned. Complaining on the basis of uninformed guess work is of no use. Worse: if we endlessly carp at TF we run the risk of p155ing him off. And if he cuts and runs then we are completely, totally, utterly and wholly fu@ked.....

[dave58]

still find it hard to see why our board would need to borrow £15M if they're committed to the club? they're meant to be some of the wealthiest people around why wouldn't they lend the club the money against their commtment and if they left call in the debt?

[Kirill]

still find it hard to see why our board would need to borrow £15M if they're committed to the club? they're meant to be some of the wealthiest people around why wouldn't they lend the club the money against their commtment and if they left call in the debt?

Would you lend a small relegated club 15 million pounds?

[vblockranger]

Would you lend a small relegated club 15 million pounds?

not my own money! I would lend them someone elses tho :-)

[Kirill]

not my own money! I would lend them someone elses tho :-)

And who do you think would risk lending it and under what conditions, you know the ABC (ahem) of prudent business?
Furthermore, what provisions would you make for repayment if it all goes wrong?
A) You would promise to repay out of your pocket, 15 million here or there is no big deal for a rich dude.
B) You would offer as collateral the assets of an already ailing company that you (nominally) own.

[jfish]

I would presume you need to borrow money to buld relationships with the bank. A sort of credit rating, I've got a mate who is a pilot and prob earns about 120k a year but he can't get a mortgage. If you get what I'm saying.

[WeAreQPR12]

fish is correct, when it comes to buying your own home or taking on a purchase of land etc with intentions of building work, they will look into credit rating. Not of the indivdual but as a football club. However I would of thought the credit rating would be superb due to the abc loan. You do need to prove you can pay things back and like your pilot mate who has never been in debt, unfairly he will be punished.

[Kirill]

I would presume you need to borrow money to buld relationships with the bank. A sort of credit rating, I've got a mate who is a pilot and prob earns about 120k a year but he can't get a mortgage. If you get what I'm saying.

True but a relationship with a bank by itself is meant for borrowing money at the end of the day ... so you borrow so that you could borrow more later

[hal9thou]

The problem isn't the loan, it's that the loan is symptomatic of the owners deluded approach to our club and football.

Trying to turn a small club into a big club doesn't work anymore. Trying to turn a small club into a viable outfit does, but it requires a totally different approach, often with key supporter involvement and investment. The Swansea model shows how it should be done. Its a bottom up not top down thing. I said before the season started that talk of a new stadium was deluded nonsense and nothing I have seen or read since has convinced me otherwise.

The stadium is not the problem. The mindset is the problem. Unfortunately a supporters/community trust running the club will only materialise when the ****e has really hit the fan, lets just hope that it wont be too late.