Yes. This will be to spend in the transfer window before the Season revenue comes in. All part of the plan, and not spending beyond our means I'm sure.

Yes cash flow is vital

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The documents show the lender is Barclays Bank and the funds being used to secure the loan are stipulated payments that have been verified by the Premier League. The problem may be that certain payments, such as UK TV and Radio and Overseas Broadcast rights are made later in the year so that Palace's "cash on hand" is lower at this time. Therefore, in order to do business in the transfer window and sign player contracts under league and FA rules, the cash on hand must be higher. Hence the loan. It is not comparable to the loan that Simon Jordan made with Agilo, the legalized loan shark outfit that was the direct cause of the 2010 administration. This loan is completely secured and after reading the documents that the OP posted, appears to be fairly standard practice in the football industry. Having said that, given our financial history, it is something that at first blush would be worrying but as other posters have said there is a big difference between Simon Jordan et. al. and previous chairmen/boards.

Edited by kenbarr (21 May 2017 2.29am)

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I don't think this is particularly uncommon. The revenue from TV money etc., comes in at certain times of the year whereas the expenditure is needed at other times when the Transfer Window is open.

Also, I imagine that players, selling clubs and agents want to see that you have the means to pay.

Borrowing money against future revenue is a bit like factoring in any other business - you sell the debt on at an earlier stage, get the money early but pay a premium - this just seems like a grown up version of that.

Edited by dp (21 May 2017 7.51am)

Did someone say we spend £70-80m a year on wages?

Surely that doesn't leave enough left for transfers, running of the club, policing of matches etc.

We'd be left with £20m for transfers plus what little else our stadium brings in.

I thought wages were more like £50m/year. ?

I've had a read of the whole charge document and my brain is now hurting.

It does seem to be an assignment to Barclays of the rights to receive TV monies and it seems that the bank have lent the club monies on two occasions just prior to transfer windows opening and are being re-imbursed directly from the TV income.

As dp has suggested it is a form of factoring although I'm not sure how solid the security is in the event that Palace went bust as I'm guessing that some if not all of the TV monies would be withheld anyway.