It's that time of year again!

[dave.woodhall]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

1) It's not 20% - it's spread over several years.
2) He hasn't taken it anyway.

[andyh]

I am merely asking a question, and wondering whether 20% interest on loaned money is the going rate.

This will be the interest he waived in any case?

Since he took over ? Or just this year?

All I'm saying is that the interest being charged by Lerner is netting him a pretty penny.
Why couldn't the rate be 10%.
If this was the good old days, and it was Doug charging the club 20% interest, he would be being ripped to pieces on here, and elsewhere.

[pauliewalnuts]

I am merely asking a question, and wondering whether 20% interest on loaned money is the going rate.

This will be the interest he waived in any case?

Since he took over ? Or just this year?

All I'm saying is that the interest being charged by Lerner is netting him a pretty penny.
Why couldn't the rate be 10%.
If this was the good old days, and it was Doug charging the club 20% interest, he would be being ripped to pieces on here, and elsewhere.

He's not charging the club 20% interest, for starters. The loans were at the standard LIBOR rate plus 2%.

You also talk about him charging the club interest and have a go at him about it, when he's waived it. Seems odd to me.

[andyh]

For fucks sake, who's having a go!!
I asked a question whether 20% is the going rate for money loaned to the club.
Personally, I think it's a huge amount to charge, and proves that he is probably more astute a business man than many give him credit for.

Shame some of  the 'waived' interest couldn't be spent on a centre half.

[pauliewalnuts]

I think it's pretty obvious what you are hinting at, ie that Lerner is charging too much interest for the money he has put into the club.

How much of that money do you think he's ever likely to see back?

[dave.woodhall]

Again. It isn't 20%. And he hasn't taken it. 

[andyh]

Again. It isn't 20%. And he hasn't taken it. 

Fuck it, the hounds have have won, I give up

[pauliewalnuts]

Christ, andy, keep yer knickers on!

We were only pointing out that it isn't 20 percent, and he has waived it, and it was interest on a gigantic loan that he'll almost certainly never actually see back in any case.

Personally, i think he is largely hopeless as a chairman these days, but that does seem a bit of a harsh stick to be beating him with.

[Legion]

No-one has 'won', andyh. This is a discussion board.

[Risso]

The interest was never paid anyway, it was all rolled up and added to the outstanding loan balance.  The interest and the waiving of it has just been one big paper exercise.

[Greg N'Ash]

erm....I take it they're still not out? Getting suspicious now.

[cdbearsfan]

Randy isn't on the latest Forbes' billionaires list. Bearing in mind it includes all dollar-billionaires, that means he has less than £660 million at current exchange rate.

Didn't he used to have loads more than that? Maybe his missus did clean him out.

[Ads]

There was a story a while ago that he'd increased his net worth and was now a sterling billionaire.

[Risso]

erm....I take it they're still not out? Getting suspicious now.

They've been submitted at last but aren't available to view yet.
 
edit: in fact, they now are, back in a sec!

[Risso]

Love this bit:

"Risks

The key risk facing any club in the Premier League is that of relegation.  The board mitigates this risk to the best of its ability by providing the manager with first class facilities and appropriate payroll and transfer budgets".

Chinny reckon.