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10 minutes ago, trousers said:

We've been taken over by someone who wants to run a self-sustaining football business....

groundhog day wtf GIF

;)

 

 

haha sorry I meant of BBC Radio Solent's discussions and talks with Semmens.

I've got a bastard meeting at 4:30 😐

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2 minutes ago, CanadaSaint said:

What I want to hear is that they've paid off the loan outright, if that's possible. That would transform the finances of the club, and pave the way for some quality signings - not necessarily paid transfers but free agents whose contracts have expired.

is there any reason the new owner would do that (pay the debt off, I mean) unless he had to? Id of thought he prefer to keep the £70m in his own pocket and let the club manage the repayments. I guess he could reduce the outgoings of the club, but that doesn't make him money for his extra £70m investment, which he could invest elsewhere.

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Just now, Chez said:

is there any reason the new owner would do that (pay the debt off, I mean) unless he had to? Id of thought he prefer to keep the £70m in his own pocket and let the club manage the repayments. I guess he could reduce the outgoings of the club, but that doesn't make him money for his extra £70m investment, which he could invest elsewhere.

He could pay it off so the money is owed to him with the understanding that he'd make it back in any future sale. 

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1 minute ago, Saint_clark said:

He could pay it off so the money is owed to him with the understanding that he'd make it back in any future sale. 

but as an investor that just means he has £70m tied up making hi zero money. He may as well allow the club to retain the debt and then stick his £70m to good use - maybe as anther loan to the club or indeed to buy something else. Can't see him clearing the debt, but perhaps the finances peeps on here will be able to provide some input. I know jack.

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4 minutes ago, Chez said:

is there any reason the new owner would do that (pay the debt off, I mean) unless he had to? Id of thought he prefer to keep the £70m in his own pocket and let the club manage the repayments. I guess he could reduce the outgoings of the club, but that doesn't make him money for his extra £70m investment, which he could invest elsewhere.

Only that it sounded like the club had to accept a punitively high interest rate to get the loan. A more stable owner might be able to self-finance, or at least refinance at a lower rate (which was about 9% I think).

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7 minutes ago, Chez said:

is there any reason the new owner would do that (pay the debt off, I mean) unless he had to? Id of thought he prefer to keep the £70m in his own pocket and let the club manage the repayments. I guess he could reduce the outgoings of the club, but that doesn't make him money for his extra £70m investment, which he could invest elsewhere.

It's pretty standard practice, 99% of our debt is shareholder debt. Would you sell the club without being paid back for your investment? This is also where the £250mi figure comes from I guess. 

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5 minutes ago, Chez said:

is there any reason the new owner would do that (pay the debt off, I mean) unless he had to? Id of thought he prefer to keep the £70m in his own pocket and let the club manage the repayments. I guess he could reduce the outgoings of the club, but that doesn't make him money for his extra £70m investment, which he could invest elsewhere.

From what I remember it was a high-risk interest rate - like 7.5%, which is way above regular corporate loan rates. That throttles the club's finances and probably plays (negatively) into the FFP equation. It also places major pressure on wage bill affordability which is why I mentioned free agents.

But lenders don't usually let you pay out early without some penalties.

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1 minute ago, trousers said:

Semmens: "There's a lot of very rich people out there looking to get involved in football clubs but without any plans. We didn't want one of those"

Sounds like a sneaky middle finger to the new Newcastle owners. Lovely. It definitely sounds like the new people have a plan to make us competitive (more so than we already are anyway).

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2 minutes ago, trousers said:

I think it's pretty clear from the Semmens interview that there isn't going to be any significant increase in 'off the shelf' player investment... 

,,,but it would be silly to say that in a transfer window to be honest

Edited by maysie
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Martin and Adam say this....

Why this takeover? We have been at this a long time.  Gao and Kat have allowed the team time to find the right new owners/solution and turn away the wrong option.  Sports Republic have the same values for the long term for SFC.  We are the right club to fit their strategy.

 

Why are they right for us?  It is hard to find good investors, lots of rich people out there.  Some have good ideas who do not have the money.  We wanted good people/good investors and we have that with these people. We were looking for experience in elite sports.  Rasmus has that and believes in what we believe in.  The other 2 have deep experience in investment in sport.  We looked for an investment in the plan we all believe in.  They are committed to that path.  We need to develop young players like JwP and bring in the likes of Tino.  Improve players like we have with Oriel.  Sports Republic will make us do this better.  This is a new business and want a network of clubs, they looked for us and we fit that model.  They will bring new technologies and practices to make us better.  Multi-club model will allow us to develop players better.

 

Have they borrowed money / will money be leveraged? NO to both.  That was a pre-requisite to this and they have brought their own money to buy the club.

 

Do we know what formal positions the 3 will take up?  Leadership at SFC not changed.  They will be part of the ownership board and will work on the multi-club area

 

What stature of future clubs in their portfolio? Early in its development.  Way too early to discuss.  All will sit in Sports Republic

 

Will the club be more competitive in transfers?  We have a strategic plan and they have bought into that.  We are absolutely in a better position than we were yesterday.

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