How are we funding Falmer?

[Dave the OAP]

we have gone back to Egyptian time and jewish slaves are building it......that is why we are rushing as Moses is reputedly to be walking across from France as we speak

 

[Scoffers]

Erm, whilst I agree with you all (just playing a bit of devil's advocate here) just because he says he doesn't want it back, doesn't mean that it won't happen. Have we really lost our critical functions to such a degree?

And whilst we are absolutely better off having the loans interest free, we are still massively in debt. We have about half the debt of someone like Fulham, but about a 20th (guess! but it's a lot, no?) of the revenue.

My ham-fisted point is - yes, Falmer is great and represents a massive opportunity for us, but let's not take our eyes off the risk, eh? Surely we've learnt that lesson.

Without a new Stadium, the club's long term future would be bleak in the extreme, that would be a massive risk.

With A New Stadium, we have a secure future with the ability to general cash from up to 22,500 bums on seats, a massive increased income from Hospitality, allowing is to pay back the loan over 25 years, which is perfectly do-able as there are no interest charges. That is assuming that Bloom doesn't take more shares in part payment of the loan.

There is a risk, in that Mr Bloom pulls the rug from underneath us, but his family is steeped in BHAFC, and it's a far better risk than not having a Stadium.

There are all sorts of risks in life, you take a risk when you step outside in the morning, some risks however, are calculated, and if the club we all love has to take a risk, I'd rather have the risk we have now, then pretty much any other possible outcome.

 

[Collar Feeler]

Simon Jordan lost all his money to Tony Bloom in a winner takes all poker match, permatan man thought he had Palace's woes all wrapped up with a tidy straight but Tony bamboozled him with a lovely full house straight out of the poker players handbook, the orange one was all in with £93 million big ones and Tony raped his wallet thus securing funding for the new stadium and condemning Palace to administration and a slide down the leagues into footballing mediocrity.

 

[itszamora]

Erm, whilst I agree with you all (just playing a bit of devil's advocate here) just because he says he doesn't want it back, doesn't mean that it won't happen. Have we really lost our critical functions to such a degree?

And whilst we are absolutely better off having the loans interest free, we are still massively in debt. We have about half the debt of someone like Fulham, but about a 20th (guess! but it's a lot, no?) of the revenue.

My ham-fisted point is - yes, Falmer is great and represents a massive opportunity for us, but let's not take our eyes off the risk, eh? Surely we've learnt that lesson.

There is no risk. I have physically witnessed Tony Bloom saying he does not expect to get the money back, and effectively it is an £80m gift to the club. Didn't we go over all of this a year ago?

 

[Silent Bob]

Erm, whilst I agree with you all (just playing a bit of devil's advocate here) just because he says he doesn't want it back, doesn't mean that it won't happen. Have we really lost our critical functions to such a degree?

And whilst we are absolutely better off having the loans interest free, we are still massively in debt. We have about half the debt of someone like Fulham, but about a 20th (guess! but it's a lot, no?) of the revenue.

My ham-fisted point is - yes, Falmer is great and represents a massive opportunity for us, but let's not take our eyes off the risk, eh? Surely we've learnt that lesson.

This is probably the most risk-free way any club has built a stadium ever.

 

[tedebear]

Erm, whilst I agree with you all (just playing a bit of devil's advocate here) just because he says he doesn't want it back, doesn't mean that it won't happen. Have we really lost our critical functions to such a degree?

And whilst we are absolutely better off having the loans interest free, we are still massively in debt. We have about half the debt of someone like Fulham, but about a 20th (guess! but it's a lot, no?) of the revenue.

My ham-fisted point is - yes, Falmer is great and represents a massive opportunity for us, but let's not take our eyes off the risk, eh? Surely we've learnt that lesson.

Good devils advocate point - but some risks need to be taken, lets re-convene in 5 years!

 

[cannedheat]

A loan. So we are massively in debt. No-one worried about that?

Where have you been living Mars.

 

[Lord Bracknell]

The risk lies in whatever commitments lurk in Tony Bloom's mysterious business empire. If he suddenly finds that other activities that he is involved in mean an urgent (and possibly unexpected) requirement to find cash, there could be a problem.

Thing is, though, that we know nothing of Tony Bloom's business empire. Where did the money come from? Will it carry on flowing? I don't think any of us has a clue - although, presumably, someone has asked the relevant questions and got a decent answer.

As for all this nonsense about Dick Knight = no stadium ... who kept the Bloom family on board throughout the years that DK was Chairman? DK.

People talk as if the Blooms took over when the Club went bust. They didn't. They worked with the board throughout DK's time as Chairman.

 

[Ninja Elephant]

John Prescott is funding the whole thing.

 

[Scoffers]

The risk lies in whatever commitments lurk in Tony Bloom's mysterious business empire. If he suddenly finds that other activities that he is involved in mean an urgent (and possibly unexpected) requirement to find cash, there could be a problem.

Thing is, though, that we know nothing of Tony Bloom's business empire. Where did the money come from? Will it carry on flowing? I don't think any of us has a clue - although, presumably, someone has asked the relevant questions and got a decent answer.

As for all this nonsense about Dick Knight = no stadium ... who kept the Bloom family on board throughout the years that DK was Chairman? DK.

People talk as if the Blooms took over when the Club went bust. They didn't. They worked with the board throughout DK's time as Chairman.

I take the point, but is that any more risk that taking a £80M loan from someone like RBS? Even if we could have managed to secure such a loan, we would be paying god knows how much interest meaning that the £80M loan is more like double that. We would also probably have all sorts of sanctions and restrictions imposed upon us.

It is a valid concern that we know bugger all about Blooms real long term financial stability, but it is a risk that,at least on the face of it, seems to be worth taking.

 

[Scoffers]

Another point, which perhaps someone with much more financial knowledge than me could answer, is what would happen if, say sometime in 2013, that Bloom's business empire went bust. The loan he gave the club is not secured against the stadium, as far as I know, so what would be the worse-case scenario?

 

[Twinkle Toes]

Actually you're all wrong. I can exclusively reveal that it was JAMES CORDEN & not Tony Bloom who stumped up the cash for our brand new Field of (ex)Deans. The thing is, he just doesn't like to talk about it (much like his amazing work for all them chirridable causes). Why do ya think the bloke's been so lo-pro recently?? Hey, you do the MATH.

 

[DJ Leon]

Without a new Stadium, the club's long term future would be bleak in the extreme, that would be a massive risk.

With A New Stadium, we have a secure future with the ability to general cash from up to 22,500 bums on seats, a massive increased income from Hospitality, allowing is to pay back the loan over 25 years, which is perfectly do-able as there are no interest charges. That is assuming that Bloom doesn't take more shares in part payment of the loan.

There is a risk, in that Mr Bloom pulls the rug from underneath us, but his family is steeped in BHAFC, and it's a far better risk than not having a Stadium.

There are all sorts of risks in life, you take a risk when you step outside in the morning, some risks however, are calculated, and if the club we all love has to take a risk, I'd rather have the risk we have now, then pretty much any other possible outcome.

Agreed, that's what I mean about it being an opportunity for us. I'm saying we don't take the risk (of course), just that we recognise it.

 

[DJ Leon]

There is no risk.

So spending £90m on a stadium and owing one individual that money represents NO risk. Really?

 

[DJ Leon]

Where have you been living Mars.

I must have missed all the incisive debate on NSC about this. So, if you like - yes.

 

[beorhthelm]

Another point, which perhaps someone with much more financial knowledge than me could answer, is what would happen if, say sometime in 2013, that Bloom's business empire went bust. The loan he gave the club is not secured against the stadium, as far as I know, so what would be the worse-case scenario?

if unsecured, the worse case is... nothing really. a stranger becomes the major creditor of unsecured debt, with the only option to them to put the club in administration, but without any meaningful assets, and behind any other secured debt, that would be futile. i'm inclined to believe the money is a defacto gift (as loan to avoid a fat tax bill...) which will never be called in. I suspect Bloom has been very shrewed in some business, made a fat cash pile and has no need for most of it, so we benefit.

 

[deletebeepbeepbeep]

This sounds like rose tinted glasses but I believe Bloom has lots and lots of money, lots, and has sound financial advisors that will see this club into a sound financial footing. I think you just have to see an interview or talk to Tony to realise he is no mug, he is like the antithesis to Simon Jordan and I cant see anything but positives from this point of view. Very business minded and sensible with the club at heart.

 

[Guy Fawkes]

Been out of the loop for a while, was just wondering how the club are paying for our lovely new stadium?

You now know where all the money from Pompey and Palace disappeared too. It wasn't overpaying players or spending on signings they could ill afford after all, but gambling their money playing our Tony at poker - the same reason why the public finances are such a mess, Brown & co are no match around a poker table.

 

[itszamora]

So spending £90m on a stadium and owing one individual that money represents NO risk. Really?

Yes, it's an unsecured loan that is not repayable until 2023, whereby if it is not paid it is simply converted into a greater shareholding in the club. And seeing as he owes 75% anyway...

 

[Alex Alex Dawson oo! oo!]

Yes, it's an unsecured loan that is not repayable until 2023, whereby if it is not paid it is simply converted into a greater shareholding in the club. And seeing as he owes 75% anyway...

Shares in the Club or the owners of the stadium (ie Community Stadium Ltd)? If it's the former then I don't think there's sufficient shares available for issue to cover such a loan - or have you checked?