The Takeover What Do You Want To See ?

[EastStandRed]

Why would they spend £40-£50m building a new stadium? The land wouldn't be worth that so he'd be out of pocket straight away

[Romared]

Weer has all talk onna new stadium come from ?

[SBRed48]

Why would they spend £40-£50m building a new stadium? The land wouldn't be worth that so he'd be out of pocket straight away

The beauty of venture capitalism is that they never use their own money. Mister Lee will "borrow" the £40 million or whatever from the banking system but put the 100% mortgage in BFC's name so the club become responsible for the payments, When Mister Lee leaves BFC will have to make the payments as well as paying rent on the site. Borrowing other people's money is part of the reason it all went t1ts up in the USA in 2008 and the crisis spread globally. Guess who picks up the tab.
There may be some short term investment on players with unsustainable contracts but when no instant success comes abart Mister Lee say "No more money, I go now" and BFC are left to pick up the tab.

So we move from a financially stable club with it's own ground to paying rent on the land, a mortgage for the stadium and unsustainable player contracts. All to chase the dream of The Premiership against 18 other richer clubs. Mister Lee sells the Oakwell site for a tidy profit and laughs all the way to the bank. Careful what you wish for.

[Exiletyke]

The beauty of venture capitalism is that they never use their own money. Mister Lee will "borrow" the £40 million or whatever from the banking system but put the 100% mortgage in BFC's name so the club become responsible for the payments, When Mister Lee leaves BFC will have to make the payments as well as paying rent on the site. Borrowing other people's money is part of the reason it all went t1ts up in the USA in 2008 and the crisis spread globally. Guess who picks up the tab.
There may be some short term investment on players with unsustainable contracts but when no instant success comes abart Mister Lee say "No more money, I go now" and BFC are left to pick up the tab.

So we move from a financially stable club with it's own ground to paying rent on the land, a mortgage for the stadium and unsustainable player contracts. All to chase the dream of The Premiership against 18 other richer clubs. Mister Lee sells the Oakwell site for a tidy profit and laughs all the way to the bank. Careful what you wish for.

SB I agree with much of what you say but how do you suggest we stay as a "financially stable club"
However you ought to take a more critical look at our current ownership
As I understand it PC has underwritten the loans taken out in the past [bit like standing as guarantor for a mate ] which I believe is not the same as forking out your own money [only costs if things go tits up & the club can't pay back the loans]
The loans have been paid back so no need for PC to use any of his own money
He will leave from this club a lot wealthier than when he arrived & good luck to him so the bottom line is not too far removed from Mr Lee who just has a bigger wad or a bigger ability to borrow more money
I may have got this wrong but perhaps someone on here with better info can correct me
It's business but on a larger scale
I don't know what the answer is but we cannot stay as we are as PC wants to sell

[EastStandRed]

SB I agree with much of what you say but how do you suggest we stay as a "financially stable club"
However you ought to take a more critical look at our current ownership
As I understand it PC has underwritten the loans taken out in the past [bit like standing as guarantor for a mate ] which I believe is not the same as forking out your own money [only costs if things go tits up & the club can't pay back the loans]
The loans have been paid back so no need for PC to use any of his own money
He will leave from this club a lot wealthier than when he arrived & good luck to him so the bottom line is not too far removed from Mr Lee who just has a bigger wad or a bigger ability to borrow more money
I may have got this wrong but perhaps someone on here with better info can correct me
It's business but on a larger scale
I don't know what the answer is but we cannot stay as we are as PC wants to sell

Exactly, something has to change. It's ok saying carry on as we are but owned by who and who would loan the 2-3million to the club the seasons when we've lost money like PC has.

[Exiletyke]

Exactly, something has to change. It's ok saying carry on as we are but owned by who and who would loan the 2-3million to the club the seasons when we've lost money like PC has.

As I understand it PC "guaranteed" the loan from the bank for instance of 1.980,000 or thereabouts in 2013/14
The club was able to service the debt plus about £15000 interest for the bank loan so as I see it PC did not spend his own money but stood as guarantor [not quite the same is it]?
Unless someone can correct me as it's just my take on the past