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Amit back for round 2 - This could get interesting...
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Pete - something I'd like to put to you...
When Flavio & Co. took over the clubs debt was somewhere around the £20 million mark. Pretty much everything that they've put in has been turned into further debt to the club. The club was costing approx. £220k a week to run last season before income and revenues. After income any further debt has/was simply put back into the club hence the debt rising to £35 million. Please don't act like Bernie and Flavio are banking rolling QPR on a hugh scale. When the club is eventually sold they will get back all they have put in and some. A similar situation to the Glazers at Man Utd has occurred at QPR. Most clubs do it and the rich people because of their credit ratings just cover the finance. The club has been paying interest to Flavio for the Amula loan (or whatever that company was called), Amit's name I was led to believe was purly as a guarantee. The only people who lose out on football clubs is all the small companies who are owed money and the banks. Look at Portsmouth as a prime candidate. We are now just in slightly shallower water because with our current squad and wage bill QPR will turn about a £20million profit this season and a bit less the next 3 years based on parachute payments if we go down.
This could possibly not make much sense as I've wrote it quick and have to dash!Last edited by Dazzer1977; 01-06-2011, 04:34 PM.Comment
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Can't compare Glazers and QPR, Glazers did a leveraged buy out, i.e borrowed money to buy club and transferred that debt to the club, thus reducing the asset to them as value of club minus debt. In the hope the value of the club grows.Pete - something I'd like to put to you...
When Flavio & Co. took over the clubs debt was somewhere around the £20 million mark. Pretty much everything that they've put in has been turned into further debt to the club. The club was costing approx. £220k a week to run last season before income and revenues. After income any further debt has/was simply put back into the club hence the debt rising to £35 million. Please don't act like Bernie and Flavio are banking rolling QPR on a hugh scale. When the club is eventually sold they will get back all they have put in and some. A similar situation to the Glazers at Man Utd has occurred at QPR. Most clubs do it and the rich people because of their credit ratings just cover the finance. The club has been paying interest to Flavio for the Amula loan (or whatever that company was called), Amit's name I was led to believe was purly as a guarantee. The only people who lose out on football clubs is all the small companies who are owed money and the banks. Look at Portsmouth as a prime candidate. We are now just in slightly shallower water because with our current squad and wage bill QPR will turn about a £20million profit this season and a bit less the next 3 years based on parachute payments if we go down.
This could possibly not make much sense as I've wrote it quick and have to dash!
In our and most other clubs situations director loans are used because the tax system encourages it, and the only other method of input requires mucking around with equity. e.g Why should Mr X who owns 60% inject funds to the benefit of Mr Y who owns 40% and is not putting in.
In QPR's case its all loans so it makes no difference if only one shareholder puts in, but as I alluded to in my previous post, the largest stakeholder has control of the board and if they ride roughshod over any other investors the other investors are not going to put money in be it loans or investment without either gaining benefit or being able to manage the use of those loansComment
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Maybe the above is in simple enough terms that Pete can understand and stop spinning ... but I doubt itCan't compare Glazers and QPR, Glazers did a leveraged buy out, i.e borrowed money to buy club and transferred that debt to the club, thus reducing the asset to them as value of club minus debt. In the hope the value of the club grows.
In our and most other clubs situations director loans are used because the tax system encourages it, and the only other method of input requires mucking around with equity. e.g Why should Mr X who owns 60% inject funds to the benefit of Mr Y who owns 40% and is not putting in.
In QPR's case its all loans so it makes no difference if only one shareholder puts in, but as I alluded to in my previous post, the largest stakeholder has control of the board and if they ride roughshod over any other investors the other investors are not going to put money in be it loans or investment without either gaining benefit or being able to manage the use of those loansComment
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Simply the love the accusation of spinning
Why, because its something you don't want to read or hear?
I'm just relaying my understanding, not a matter of spinning.
I like you would prefer AMit/Mittal to have overall control. In my humble opnion thats not going to happenALL BEST BANTER AND ALL THE LATEST FROM QPR.
THE WEST LONDON 90 MINUTE FOOTBALL SHOW EVERY MONDAY FROM 9.30PM http://mixlr.com/the90mfs/Comment
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I played sunday league football today.
Clearly I was the best player on the pitch.
I scored 5 and made 7 last ditch tackles.
We lost 5-0 but the rest of my team were sh it!Comment
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To us, this situation is a known unknown as Donald Rumsfeld would have called it! All we do know is that we don't know what is happening in the boardroom! Are they trying to get it cheap? I am sure they are, this is human nature. Is it a reasonable offer?
We don't know! The rest is just conjecture on our part. All we can do is sit, wait and hope for the best. Makes you feel great doesn't it?Comment
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To us, this situation is a known unknown as Donald Rumsfeld would have called it! All we do know is that we don't know what is happening in the boardroom! Are they trying to get it cheap? I am sure they are, this is human nature. Is it a reasonable offer?
We don't know! The rest is just conjecture on our part. All we can do is sit, wait and hope for the best. Makes you feel great doesn't it?
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makes sense to me m8..good postPete - something I'd like to put to you...
When Flavio & Co. took over the clubs debt was somewhere around the £20 million mark. Pretty much everything that they've put in has been turned into further debt to the club. The club was costing approx. £220k a week to run last season before income and revenues. After income any further debt has/was simply put back into the club hence the debt rising to £35 million. Please don't act like Bernie and Flavio are banking rolling QPR on a hugh scale. When the club is eventually sold they will get back all they have put in and some. A similar situation to the Glazers at Man Utd has occurred at QPR. Most clubs do it and the rich people because of their credit ratings just cover the finance. The club has been paying interest to Flavio for the Amula loan (or whatever that company was called), Amit's name I was led to believe was purly as a guarantee. The only people who lose out on football clubs is all the small companies who are owed money and the banks. Look at Portsmouth as a prime candidate. We are now just in slightly shallower water because with our current squad and wage bill QPR will turn about a £20million profit this season and a bit less the next 3 years based on parachute payments if we go down.
This could possibly not make much sense as I've wrote it quick and have to dash!Comment
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We have a price like all clubs, pay the going rate or walk away. FB and BE Are in the box seat as majority share holders.
Until someone puts up the £ to buy them out, we are stuck with them.....END OF !Comment
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Pete - something I'd like to put to you...
When Flavio & Co. took over the clubs debt was somewhere around the £20 million mark. Pretty much everything that they've put in has been turned into further debt to the club. The club was costing approx. £220k a week to run last season before income and revenues. After income any further debt has/was simply put back into the club hence the debt rising to £35 million. Please don't act like Bernie and Flavio are banking rolling QPR on a hugh scale. When the club is eventually sold they will get back all they have put in and some. A similar situation to the Glazers at Man Utd has occurred at QPR. Most clubs do it and the rich people because of their credit ratings just cover the finance. The club has been paying interest to Flavio for the Amula loan (or whatever that company was called), Amit's name I was led to believe was purly as a guarantee. The only people who lose out on football clubs is all the small companies who are owed money and the banks. Look at Portsmouth as a prime candidate. We are now just in slightly shallower water because with our current squad and wage bill QPR will turn about a £20million profit this season and a bit less the next 3 years based on parachute payments if we go down.
This could possibly not make much sense as I've wrote it quick and have to dash!
Dazzer respect your posts but don't really see your point here. Yes the debt is loaded onto the club but this simply reduces the value of the club (hence why Newcastle's headline value is a lot less than you might imagine). So they are putting off paying possibly but only at the expense of reducing their asset. Its not that somehow the fan loses out and the rich owners get away without paying the debt.Comment
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fingers crossed on this.... more because the apparant boardroom upheavel maybe putting off potential new signings?Comment

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