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TopGun

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Fair enough. But as the purpose of security is to give the lender something to recover against in the event of a default, it would seem logical for that security to be against something which post-dates the expected loan term? Instead of the word 'proof', would you accept 'very strong indication'?

 

Yep, agree with that in principle. And also from other private snippets I've heard as to how much the loan is and what it's for.

 

However, as I say the loan is secured against next year's income as well as the assets of SFC, so its not 100% that clear cut.

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Yep, thats a great reason why we should completely rule it out.

 

Not unreasonable to question credibility if they have shown they can't even get the basics right, such as the chairman's gender.

 

It says it is based on the 2010/11 accounts. This explains them, the interview is an interesting listen...

 

http://www.bbc.co.uk/sport/0/football/17547804

 

The loan we know little about was in September 2012 and isn't covered by this website Pompey fans are getting all excited about on POL and Twitter.

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We won't know until the accounts come out but I would say the most reasonable and obvious explanation for it is paying for Ramirez up front and then paying the loan back with Premiership TV money over the rest of this season. If it's something else then maybe it's worrying but there is nothing to indicate that we should be thinking the worst.

 

Pompey fans are going to seize on every bit of negativity around our club because frankly that's all they have. They will soon be at best rock bottom of Division 3, they have no owner, no manager, no players who have any attachment to the club, a crumbling down stadium the club doesn't even own, no academy. In short no hope. I would think there are BSP South clubs with better long term prospects. Hating us is all they have got at the moment.

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  • 4 weeks later...

mr_bump.jpg

 

Today's training ground announcement perhaps ties in with the BVI loan taken out in September 2012.

 

BACKGROUND

 

Training ground...

 

http://www.saintsfc.co.uk/news/article/training-ground-update-527858.aspx

 

BVI loan...

 

http://www.dailyecho.co.uk/sport/saints/news/9970183.Mystery_over_Saints__loan__from_tax_haven_company/?action=complain&cid=10832783

 

The connection?

 

The original plan was to use the existing training dome in the new redeveloped Staplewood. Today Saints confirmed this won't be happening due to issues with the existing dome. The timing of which links perhaps with the British Virgin Island loan taken out in late Spetember 2012.

 

I posed this question to a Pompey supporting accountant...

 

"Do you think it could be feasible the BVI loan could be a tax efficient way to pay for the new training dome after the construction issue and need to build a new one rather than keep the old one arose around the same time the loan was taken out? Perhaps the two tie in with each other? In which case a potential non issue."

 

His response was...

 

"That would make sense if the club was going to make a profit as debt interest is tax deductible (Where did you learn that from ;) ). Are you confident of making a profit after the expenditure in this year? It's a fair point though."

 

So...

 

We all have no idea if Saints will make a profit or not, but it would tie everything together wouldn't it? Given the huge TV money it is possible I suppose, I don't think our wage bill will be that big (yes Ramirez is on a hefty wage, but the others?). The BVI loan then isn't really an issue and just a financial management technique to fund the unexpected investment in having to build a new training dome when they originally planned to use the old one.

 

Panic over perhaps...? Would be nice for some official clarification though.

Edited by Matthew Le God
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Your logic makes no sense: debt is tax deductible, so it is an incentive to borrow and structure deals in a particular way. But this could be done to fund any number of projects including transfers. From this, you jump to assuming it must be for the redevelopment of Staplewood. Where's the evidence? Even your suggestion that the timing is very close doesn't really stack up. For all we know, the dome is the reason for the falling out with the contractors.

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Your logic makes no sense: debt is tax deductible, so it is an incentive to borrow and structure deals in a particular way. But this could be done to fund any number of projects including transfers. From this, you jump to assuming it must be for the redevelopment of Staplewood. Where's the evidence? Even your suggestion that the timing is very close doesn't really stack up. For all we know, the dome is the reason for the falling out with the contractors.

 

Not my logic, that of a Pompey supporting accountant I asked... actually... "Pompey" and "accountancy"? I see where I've gone wrong! :D

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Not my logic, that of a Pompey supporting accountant I asked... actually... "Pompey" and "accountancy"? I see where I've gone wrong! :D

 

No. He just says that the debt is an efficient way to access credit. It still means we're borrowing while it doesn't mean it's for Staplewood.

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Strong seems like an arrogant bastard. Tickle is a good lad, I always quite liked Messy too.

 

Mr Funny was one of those c*nts that tried to be hilarious but was boring as f*ck, a if he was a mongboard poster he'd be The9.

Wes Ender reminds me of Mr Uppity.

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Mr Funny was one of those c*nts that tried to be hilarious but was boring as f*ck, a if he was a mongboard poster he'd be The9.

Wes Ender reminds me of Mr Uppity.

 

I wonder who mr daydream is. In his happy world, anything can happen and facts are no barrier.

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Just to add this back into the equation re: "next year's revenue" :

 

http://swissramble.blogspot.co.uk/2012/01/southampton-saints-alive.html

 

"At the risk of stating the obvious, there is never a good time for a football club to be relegated, but it is fair to say that Southampton’s timing was particularly bad, as they missed out on the significant growth in TV deals, e.g. West Ham received £40 million for finishing bottom of the Premier League last season compared to Southampton’s £19 million in 2005. Similarly, while Southampton’s relegation was cushioned by £13 million of parachute payments, West Ham will receive £48 million (£16 million in each of the first two years, and £8 million in each of years three and four)."

 

16%2BSouthampton%2BTV.jpg

 

If we'd have had the current £48m in the 4 years following the Prem relegation we wouldn't have been in anything like the same trouble - add the additional £10m to 2006 and 2007's figures and our income would have been on a par with our last season still in the Prem.

 

Even the attitude of clubs to relegation of keeping their players for 2 seasons and going for the bounce-back rather than culling their wage earners after 6 months or a year shows there's much more money going to the relegated clubs now, and of course that amount is going through the roof next season.

 

So a small loan against guaranteed parachutes (minimum) shouldn't be a problem...

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