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Its a mess Andrew.

I suspect the receivers of Alan’s main company are the block at the moment.

I’m guessing, I have no knowledge of actual.

Just to bore folk a bit....

Banks will not touch most football clubs because of the inherent risk.

Football club ownership...
...and normal business ownership are as alike as Crack Cocaine and aspirin.

Banks know this and with the exception of the few clubs at the top, whose income is reliable, they steer clear.

In @ASFCofficial case, I make it clear to all that the underlying reliable income...
...and expenditure has to match, insofar as we can guess costs and income from day to day. It’s a guess.

But broadly speaking we aren’t so far off.

I don’t loan the club money to fund losses. I have no intention of ever doing so.

BUT

@ASFCofficial infrastructure was so..
..limited, to a degree that throttled any future earning capacity of the club, it makes business sense to use loans.

I’m in effect loaning from my company cash that in any normal situation would be supplied by banks.

We need 50 year assets, it’s a bit like when someone buys..
..a house, you need it but if you had to pay for it up front, you’d never have one.

So infrastructure loans make sense.

I limit the loans for infrastructure to an amount that can reasonably be expected to be repaid. We have cash due from transfers, but we need facilities now.
These loans are matched on the other side of the balance sheet with assets.

@ASFCofficial owns the land and stadium it sits on, with new stands, pitch, floodlights etc. etc.

I’m acting as @ASFCofficial’s banker.

I’m reasonably comfortable because I control what the club..
..spends, a high street bank doesn’t have that luxury.

This is not gambling. This is investing in infrastructure to create higher revenue streams so that Coley can have a reliable budget that is far more competitive than he started with.

It makes sense.

I know what cash..
..is due and that the prospects of repayment is very high.

If the loans were for players or unaffordable wages the opposite is true.

The chances of success are limited, we can’t all get promoted.

AND....

To use a phrase my mother always said to me..

‘YOU’VE GOT NOTHING..
...TO SHOW FOR YOUR MONEY’ followed by a clout from my dad.

Not much more to this..🙄

Some lending is good, some isn’t.

BUT..

ALL lending makes business sense because it’s tax efficient.

I don’t want to put cash in out of my personal pocket, because that pocket is...
...my tax paid pocket.

Loans before tax is the way.

Now then..

If I loan inter company for tax purposes, and it’s spent on the risky side of football (players as opposed to infrastructure) I had better be certain that the loans are so small as to not impact the main company.
If it does affect main co. the bankers of main co. are entitled to think IT is run like a football club, irrationally gambling without the normal return expected in normal business.

They start withdrawing support.

Effectively I would have made the bank a lender to my..
..club via my main business, without their agreement.

@HSBC offered my business loans at a lower rate than anyone else by far, but it was conditional on me getting their ok before any loans to @ASFCofficial could be made.

I stayed where I was. I understood their rationale.
So main co. would be losing liquidity to the football club AND liquidity from finance headroom being withdrawn by its bank.

The squeeze is on.

Bank will say “if you need cash, go and get it back of the football club, don’t expect us to continue increasing our risk”
You’re bollocksed.

Cash dries up from both ends.

You can’t pay your bills when they fall due. You’re INSOLVENT.

Receivers are appointed at main co. by the bank.

On behalf of main co. creditors and staff, they demand repayment of loans from the football club. It’s their job.
I try to sell the football club, but can’t without addressing the liability to main co.

New investors think this cost is too high with the liability coupled with the guaranteed losses in the short term, because I recklessly built the playing budget higher than was sustainable.
Staff at main co. are pissed off because not only was main co. gambled, their income and futures were too.

Everyone loses,

I’d lose fortunes,
Supporters lose their club,
The town loses a key asset,
Communities lose support,
Local businesses lose income,
Staff lose jobs,
..players lose wages,
Managers lose jobs,
HMRC loses income,
Towns lose rates.

It’s a FECKING nightmare.

I only wanted what’s best for our club.

I only wanted to show the world at large I could take the job on and win.

I only wanted to save the club.

I only did what I...
..thought was best at the time.

I was wrong, everyone hates me for losing MY cash.

I was stupid, but if we’d have been promoted on the back of my cash, I’d have been the best owner in the world.

I was so close.
This is why I bang on about #independentregulator

Clubs need protecting from well meaning owners.

We need checks and balances.

Now we have a poker table.

Pissed up, unlimited poker.

Only in this game everyone in the town loses.
Good morning BTW.
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