Lai takes out loan

[soulman101]

https://www.expressandstar.com/sport...-of-west-brom/
Is this a separate loan to the one Peace took out ?

[WBA1955]

Both of them are assett strippers.

[mickd1961]

Both of them are assett strippers.

I don’t like Lai but this isn’t “asset stripping” Des.

He owns the company and is entitled to take out a loan against it in the same way you could take a loan out against your house if you own it.

Asset stripping would be selling the training ground or The Hawthorns etc.

What surprises me about this is the fact that he is supposed to be so wealthy ( £2.8 billion reportedly ) and yet he needs to borrow just under £5m?

£2.8 billion is actually 2800 x £1m so how on Earth has it reached a point whereby me needs to borrow less than 0.2% of his supposed actual wealth?

This is like earning £20k a year and going to the bank for a loan of under £40!

I don’t believe he’s worth anything like £2.8 billion, if he was he wouldn’t need to in effect “pawn” his trinket to support his much larger businesses.

Something feels wrong about him, I believe his business interests are smoke and mirrors and are nothing like the size they are supposed to be.

[Omegstrat6]

I don’t like Lai but this isn’t “asset stripping” Des.

He owns the company and is entitled to take out a loan against it in the same way you could take a loan out against your house if you own it.

Asset stripping would be selling the training ground or The Hawthorns etc.

What surprises me about this is the fact that he is supposed to be so wealthy ( £2.8 billion reportedly ) and yet he needs to borrow just under £5m?

£2.8 billion is actually 2800 x £1m so how on Earth has it reached a point whereby me needs to borrow less than 0.2% of his supposed actual wealth?

This is like earning £20k a year and going to the bank for a loan of under £40!

I don’t believe he’s worth anything like £2.8 billion, if he was he wouldn’t need to in effect “pawn” his trinket to support his much larger businesses.

Something feels wrong about him, I believe his business interests are smoke and mirrors and are nothing like the size they are supposed to be.

Cant disagree with any of that! Certainly something not right if he needs to borrow this sort of amount and sadly think your last sentence may well be close to the truth of the matter

[Dubbag]

Lots of business in China have gone busy due to COVID.....seems unwilling to part with any of his own money.....

[Calgarybaggy]

Playing devil's advocate here so don't beat up on me: There is a difference between net worth and cash. You can have huge net worth locked into real estate and other investments but if your income goes down for whatever reason, you may not have any cash at all and you need cash to pay employees and suppliers. Think of farmers sitting on millions worth of land and going bust because they have a disastrous crop. So hopefully this loan is just a temporary solution to a short term cash flow problem.

[mickd1961]

Playing devil's advocate here so don't beat up on me: There is a difference between net worth and cash. You can have huge net worth locked into real estate and other investments but if your income goes down for whatever reason, you may not have any cash at all and you need cash to pay employees and suppliers. Think of farmers sitting on millions worth of land and going bust because they have a disastrous crop. So hopefully this loan is just a temporary solution to a short term cash flow problem.

I agree Calgary and as a business owner I fully agree you can be asset wealthy and cash poor.

This is highly unusual though when you’re supposedly worth 2800 millions Pounds!

Your actual cash liquidity in % terms only needs to be minuscule to still run into millions.

[saltnshake]

I personally don't get all the anger that is going about on social media, people seem to forget JP paid himself and a salary for nearly all the time he was there and the was £1mill a year at the end.

[BaggieBlood]

JP is the biggest c??? Ever to be involved with Albion. Without that greedy, selfish, life long Albion fan (boll ox was he) we wouldn't be in this mess now with this pot less pr ice.

Lai is simple fool who owed us nothing. JP came in as one of our own who would only sell us to who could take us further. Lying c???.

[soulman101]

Compared to some clubs we have been lucky.
Although he hasn't invested, he also hasn't took a mortgage on the club. Or sold the stadium.
Burnley was a well run club, the new American owners took a loan against the club for £60m.
This has now got to paid back due to a relagation clause.
Peace said he would only sell, if the new owner took our club forward, we have never had a owner who has money into the club to drive us forward.