The NSWE Board

[OutByEaster?]

1 minute ago, Czarnikjak said:

I am not sure of the significance of registering it against AVFC and not NSWE, I wouldn’t think it makes big difference.

What’s interesting is that the loan seems to be secured not only against 21/22 merit payments ( which are paid in May) but also against 22/23 Equal share payments. Am I getting it right?

this would suggest, larger, longer term loan.

It would, it sounds like we're borrowing a couple of hundred million pounds of future income and bringing it into the present day, without using our parent company to do it.

That would also make sense I guess if we were about to spend a fortune on a major project like ground development, or I suppose it could also make sense to be protecting the parent company if you're preparing for a sale.

This isn't a minor bridging loan though, this is two years of future broadcast revenues - it's a couple of hundred million pounds which we're grabbing from the future to bring into now, at a cost - why we'd do that is a little bit of a mystery and slightly unsettling.

 

[WallisFrizz]

4 minutes ago, OutByEaster? said:

It would, it sounds like we're borrowing a couple of hundred million pounds of future income and bringing it into the present day, without using our parent company to do it.

That would also make sense I guess if we were about to spend a fortune on a major project like ground development, or I suppose it could also make sense to be protecting the parent company if you're preparing for a sale.

This isn't a minor bridging loan though, this is two years of future broadcast revenues - it's a couple of hundred million pounds which we're grabbing from the future to bring into now, at a cost - why we'd do that is a little bit of a mystery and slightly unsettling.

 

Well this is all a bit worrying. 

[Follyfoot]

7 minutes ago, OutByEaster? said:

It would, it sounds like we're borrowing a couple of hundred million pounds of future income and bringing it into the present day, without using our parent company to do it.

That would also make sense I guess if we were about to spend a fortune on a major project like ground development, or I suppose it could also make sense to be protecting the parent company if you're preparing for a sale.

This isn't a minor bridging loan though, this is two years of future broadcast revenues - it's a couple of hundred million pounds which we're grabbing from the future to bring into now, at a cost - why we'd do that is a little bit of a mystery and slightly unsettling.

 

God forbid we get relegated. The only plausible reason I can see  is from the latter  of your two reasons and it’s scary Considering the amount of effort time and money it took them to get the club completely debt free

Edited September 8, 2021 by Follyfoot

[Sulberto21]

Is the for sale sign is going up soon?

[Risso]

From reading through the document on Companies House, looks like it's a £45m overdraft.

[Czarnikjak]

7 minutes ago, OutByEaster? said:

It would, it sounds like we're borrowing a couple of hundred million pounds of future income and bringing it into the present day, without using our parent company to do it.

That would also make sense I guess if we were about to spend a fortune on a major project like ground development, or I suppose it could also make sense to be protecting the parent company if you're preparing for a sale.

This isn't a minor bridging loan though, this is two years of future broadcast revenues - it's a couple of hundred million pounds which we're grabbing from the future to bring into now, at a cost - why we'd do that is a little bit of a mystery and slightly unsettling.

 

It won’t be quite that much, I think.

Merit payments, paid in May are £20m for 11th position ( £2m more or less for each position up or down).

Domestic equal share paid in August 2022 is £34.4m 

Is it secured against any other income? I skimped quickly through the loan notice and only these two stood out.

[Risso]

The actual document says it's an overdraft facility of £45m' secured against the PL reward money.

[OutByEaster?]

Just now, Risso said:

The actual document says it's an overdraft facility of £45m' secured against the PL reward money.

Ah, okay - I couldn't find an amount mentioned in it anywhere - it just mentioned the broadcast revenues for the next two seasons, I'd assumed all of those revenues.

Where did I miss the number?

 

[WHY]

8 minutes ago, Sulberto21 said:

Is the for sale sign is going up soon?

Wouldn’t surprise me.

[OutByEaster?]

4 minutes ago, Risso said:

The actual document says it's an overdraft facility of £45m' secured against the PL reward money.

And does that mean that at this point no actual money has changed hands, that we've just arranged a future facility for ourselves if we need it?

 

[Jareth]

Just now, WHY said:

Wouldn’t surprise me.

Why WHY?

[Risso]

3 minutes ago, OutByEaster? said:

Ah, okay - I couldn't find an amount mentioned in it anywhere - it just mentioned the broadcast revenues for the next two seasons, I'd assumed all of those revenues.

Where did I miss the number?

 

In the definitions.

 

[OutByEaster?]

So if I understand the view of the learned accountant - all we've actually done is agree in principle a deal whereby if we need it we can have an overdraft facility of up to £45m with Barclays to cover operating costs, secured against future TV revenues?

In which case, I'll get back in my box, back to Def Con 4, apologies for any under stress I may have caused.

 

[WHY]

Just now, Jareth said:

Why WHY?

Heard rumours of them wanting out weeks ago, still not convinced they want out but wouldn’t surprise me. They are at the point where they would most likely get their money back at the minute. Do they go all in or fold? The fact City paid £100m for our best player probably hasn’t helped either imo.

[JAMAICAN-VILLAN]

Have zero clue when it comes to accounting.

However, I reckon even if we WERE put up for sale, we are in a ,much healthier position than we have ever been.

Scenes when Mike Ashley buys us, with a loan against the money from the Saudis, which never came.

[Jareth]

1 minute ago, WHY said:

Heard rumours of them wanting out weeks ago, still not convinced they want out but wouldn’t surprise me. They are at the point where they would most likely get their money back at the minute. Do they go all in or fold? The fact City paid £100m for our best player probably hasn’t helped either imo.

Fair enough - but gotta say the model for running a club pre-sale is along the lines of good old Randy and more recently Mike Ashley - no actions at Villa thus far paint that picture

[Follyfoot]

10 minutes ago, Risso said:

In the definitions.

 

I was actually reading  the 2016 charge However HSBC have a full debenture over the club how can Barclays go over the top with another facility

[Czarnikjak]

4 minutes ago, OutByEaster? said:

So if I understand the view of the learned accountant - all we've actually done is agree in principle a deal whereby if we need it we can have an overdraft facility of up to £45m with Barclays to cover operating costs, secured against future TV revenues?

In which case, I'll get back in my box, back to Def Con 4, apologies for any under stress I may have caused.

 

Definitely not a Def Con 1 situation, but it might indicate that the point where the club is expected to be self sufficient is coming.

Purslow always said that the objective was for the club to be sustainable, but the date was never put on it.

NSWE could have provided the club with interest free loan or capital injection but decided not to. Which is fair enough, their money their decision. I’m still optimistic for the future under NSWE.

[dont_do_it_doug.]

An overdraft facility of £45m for a football club doesn't seem overly unusual or terribly worrying as a general rule.

However, I think it's about time the idea that NSWE are going to buy us a first class ticket to Mars alongside Bezos and the other vultures bit the dust. It is clear they are ambitious, but to a limit. 

They're not quite the deities some of our support have earmarked them as. They're businessmen, who have made their initial cash investment and they clearly feel it is time we looked to sustain ourselves as any well ran business should. Rightly or wrongly. 

[WHY]

14 minutes ago, Jareth said:

Fair enough - but gotta say the model for running a club pre-sale is along the lines of good old Randy and more recently Mike Ashley - no actions at Villa thus far paint that picture

Completely agree mate but they are business men at the end of the day, not Villa fans. From a purely business point of view it could be a good time to sell. They have a decision to make at it stands, we either standstill or they need to put their hands in their pockets to increase the capacity at VP. We are pretty much at saturation point in terms of how much we make on match days. Ticket sales don’t touch the side nowadays, it’s all about corporate hospitality. We currently have the demand but are they willing to go the extra mile? They’ve been brilliant for us and I hope they do but only time will tell.

Edited September 8, 2021 by WHY