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May 22 2024 6.40pm

Palace Funding Problems . . .

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View eagleman13's Profile eagleman13 Flag On The Road To Hell & Alicante 25 Mar 24 10.57am Send a Private Message to eagleman13 Holmesdale Online Elite Member Add eagleman13 as a friend

. . . or maybe not.

Story is from the 'Mail' so it can't be true, because 'wissie' doesn't trust nor believe them. Anyhoo, the club have taken out a 'significant' loan from an American Investment Co, MGG, taken against future transfer dealings & 'day-to-day' running costs . . . [Link]

 


I'm a blind man, i'm a blind man, now my room is cold,
When a blind man cries, Lord, he feels it from his soul.
[Link]

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View crystal-purley's Profile crystal-purley Flag Purley 25 Mar 24 11.11am Send a Private Message to crystal-purley Add crystal-purley as a friend

I am missing something here because if we are selling players and replacing those players then in theory the players sold will be larger than the players brought in. If so then we will have more money then why do we have to borrow more money??

 


Enjoying getting up later and not having someone who knows better than me (apart from the missus of course).

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View Charles's Profile Charles Flag Forest Hill 25 Mar 24 11.19am Send a Private Message to Charles Add Charles as a friend

Originally posted by crystal-purley

I am missing something here because if we are selling players and replacing those players then in theory the players sold will be larger than the players brought in. If so then we will have more money then why do we have to borrow more money??

As I read it the profits from sales you're expecting will be used to pay off the loan. It could be quite a short term loan simply allowing the club to sign new players without having to wait until outgoing sales have been completed.

 

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View Behind Enemy Lines's Profile Behind Enemy Lines Flag Sussex 25 Mar 24 11.22am Send a Private Message to Behind Enemy Lines Add Behind Enemy Lines as a friend

Originally posted by crystal-purley

I am missing something here because if we are selling players and replacing those players then in theory the players sold will be larger than the players brought in. If so then we will have more money then why do we have to borrow more money??

Perhaps its for a sort of 'Invoice Discounting' type arrangement, whereby we get paid in instalments by the buying club, but the loan means we can use the full amount from day one. Potentially that may mean we end up getting a higher price than holding out for the full amount at point of sale.

 


hats off to palace, they were always gonna be louder, and hate to say it but they were impressive ALL bouncing and singing.

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View Nicholas91's Profile Nicholas91 Flag The Democratic Republic of Kent 25 Mar 24 11.23am Send a Private Message to Nicholas91 Add Nicholas91 as a friend

My VERY LIMITED interpretation of that would be it is indicative of the model I had initially thought we were following?

Take out loans to free up cash for purchasing players we would then look to resell at a higher price at some point in the future, paying back the loans, performing in the League and keeping some extra dosh for the club. Hence the purchases of many younger players at reasonable prices with the hope/expectation they go for far more in the future - Guehi, Doucoure, Eze, Olise, Franca etc.

For me that's a far more sustainable and better plan than buying players at high prices, for short term fixes, and letting them go for near if not nothing in the future (Sakho and Benteke for instance).

I'm also hoping that this means we are looking to buy players in the summer, even if we sell one or more.

Again, VERY LIMITED interpretation. Happy to be corrected but equally informed.

 


Now Zaha's got a bit of green grass ahead of him here... and finds Ambrose... not a bad effort!!!!

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View ASCPFC's Profile ASCPFC Flag Pro-Cathedral/caravan park 25 Mar 24 11.30am Send a Private Message to ASCPFC Add ASCPFC as a friend

We really need a much more stream lined and clearer ownership structure if we're ever going to get anywhere. We have over 100 mil in loans to service now.
I presume they're somehow linked to our US owners/ shareholders but it's hard to know. I wonder if we paid off Lloyds yet.
It's hard to know anything with our ownership and I suspect it's what puts off take-overs. That along with inflated asking prices.
How this affects the new main stand - which doesn't even seem worth mentioning at this stage frankly - is anybody's guess. Did Guadi finish that cathedral yet?

 


Red and Blue Army!

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View crystal-purley's Profile crystal-purley Flag Purley 25 Mar 24 11.35am Send a Private Message to crystal-purley Add crystal-purley as a friend

Originally posted by Charles

As I read it the profits from sales you're expecting will be used to pay off the loan. It could be quite a short term loan simply allowing the club to sign new players without having to wait until outgoing sales have been completed.

So in theory a bridging loan and if the valuations are to be believed then all would be ok after the first transaction. I think it's a loan to pay off the the extra cost on the Main stand

 


Enjoying getting up later and not having someone who knows better than me (apart from the missus of course).

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View doombear's Profile doombear Flag Too far from Selhurst Park 25 Mar 24 11.35am Send a Private Message to doombear Add doombear as a friend

Originally posted by Behind Enemy Lines

Perhaps its for a sort of 'Invoice Discounting' type arrangement, whereby we get paid in instalments by the buying club, but the loan means we can use the full amount from day one. Potentially that may mean we end up getting a higher price than holding out for the full amount at point of sale.


It will always cost more to buy in instalments as no doubt we have found in our own buying experiences. Therefore:
1. agreeing to an instalment plan with a club wanting to buy one of our gems should result in a bigger sale price and
2. If the loan enables us to buy players up front at a discounted fee then we can benefit on both fronts, assuming the loan costs are less than the savings we make on the two fronts.

Hope that makes sense.

 

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View mezzer's Profile mezzer Flag Main Stand, Block F, Row 20 seat 1... 25 Mar 24 12.50pm Send a Private Message to mezzer Add mezzer as a friend

First signing will be a new treatment table

 


Living down here does have some advantages. At least you can see them cry.

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View Midlands Eagle's Profile Midlands Eagle Flag 25 Mar 24 2.59pm Send a Private Message to Midlands Eagle Add Midlands Eagle as a friend

Originally posted by Behind Enemy Lines

Perhaps its for a sort of 'Invoice Discounting' type arrangement, whereby we get paid in instalments by the buying club, but the loan means we can use the full amount from day one. Potentially that may mean we end up getting a higher price than holding out for the full amount at point of sale.

I don't think that's the case as we have done that before when we sold Aaron Wan-Bissaka as payment was supposed to be 50% with the balance after 12 months so we borrowed the final instalment from McQuarrie Bank.

I can't see why we would have to take out a loan now to fund future trading and it's more likely that we have borrowed to cover losses and January purchases and repayment will be against future player sales

 

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View Fanofzhiyi's Profile Fanofzhiyi Flag Kent 25 Mar 24 4.57pm Send a Private Message to Fanofzhiyi Add Fanofzhiyi as a friend

Originally posted by Nicholas91

My VERY LIMITED interpretation of that would be it is indicative of the model I had initially thought we were following?

Take out loans to free up cash for purchasing players we would then look to resell at a higher price at some point in the future, paying back the loans, performing in the League and keeping some extra dosh for the club. Hence the purchases of many younger players at reasonable prices with the hope/expectation they go for far more in the future - Guehi, Doucoure, Eze, Olise, Franca etc.

For me that's a far more sustainable and better plan than buying players at high prices, for short term fixes, and letting them go for near if not nothing in the future (Sakho and Benteke for instance).

I'm also hoping that this means we are looking to buy players in the summer, even if we sell one or more.

Again, VERY LIMITED interpretation. Happy to be corrected but equally informed.

Is it likely that this way we can buy players before we sell. That way we can purchase new signings and hold out for higher prices for the ones we do sell, rather than wait to the end of the window and then sell and panic buy with whatever players are still available

 

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View orpingtoneagle's Profile orpingtoneagle Flag Orpington 25 Mar 24 7.22pm Send a Private Message to orpingtoneagle Add orpingtoneagle as a friend

Originally posted by Nicholas91

My VERY LIMITED interpretation of that would be it is indicative of the model I had initially thought we were following?

Take out loans to free up cash for purchasing players we would then look to resell at a higher price at some point in the future, paying back the loans, performing in the League and keeping some extra dosh for the club. Hence the purchases of many younger players at reasonable prices with the hope/expectation they go for far more in the future - Guehi, Doucoure, Eze, Olise, Franca etc.

For me that's a far more sustainable and better plan than buying players at high prices, for short term fixes, and letting them go for near if not nothing in the future (Sakho and Benteke for instance).

I'm also hoping that this means we are looking to buy players in the summer, even if we sell one or more.

Again, VERY LIMITED interpretation. Happy to be corrected but equally informed.

I am VERY concerned if this is true. This is club financing a la Simon Jordan.

Borrowing money based on player values is like a glorified gambling. When we buy a player it comes with risks

Player might turn out to be rubbish and have little or no re sale value

Player might run down contract and be worthless

Player profit might not cover interest and or capital costs

Rate of interest on such a speculative loan will be costly.

This smacks of their being an issue with our finances.

 

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