NFFC Financial Talk

[Tricky]

Was reading Kieran Maguire's explanation of it - apparently it's pretty common practice when big transfers occur.

We get the money up front from the bank, albeit less than the actual transfer fee to cover their interest, then they recoup the money from the buying club (Spurs in this case) directly in instalments.

Does the selling club get interest from the buying club, if payment is being spread over a few years? 

Lets assume you bought something from Currys (why would you do that?), say an expensive cooker or TV and you took it out over say 3 years. You would be charged interest based on the amount the repayment was spread over.

Is this any different?

There is interest charged on the loan so effectively we are worse off longer term.

Thanks UN. That is the point I was thinking about.

So we agree to Spurs owing us £32M over the next 3 years, which is money we need now. So we have to take a loan out, to generate the cash required now. We have to pay interest on the loan, I get that, but do Spurs pay interest on the remaining amount owed to us or are they sitting on the remainder interest free?

The way I understood it from what Kieran Maguire tweeted is that Spurs pay the bank the full transfer amount in instalments, the bank pay us less than the full amount up front and they keep the difference to cover the interest.

Thanks SR. That is how I read it too.

But my little brain keeps coming back to the fact that Spurs are not paying US any interest on the outstanding amount owed to us. In other words, we are set to lose out with regards the interest owed to the bank, but Spurs only pay the outstanding amount back to the bank.

I confess to not knowing a great deal about banking or finance, but surely, we shouldnt be left out of pocket because we are owed money by Spurs? If that is the case, no wonder Daniel Levy is so loaded!!!

[McDurban]

We have taken a looa out from the sale of Brennan Johnson. Future installments paid directly to the bank instead of us.

Was reading Kieran Maguire's explanation of it - apparently it's pretty common practice when big transfers occur.

We get the money up front from the bank, albeit less than the actual transfer fee to cover their interest, then they recoup the money from the buying club (Spurs in this case) directly in instalments.

Does the selling club get interest from the buying club, if payment is being spread over a few years? 

Lets assume you bought something from Currys (why would you do that?), say an expensive cooker or TV and you took it out over say 3 years. You would be charged interest based on the amount the repayment was spread over.

Is this any different?

There is interest charged on the loan so effectively we are worse off longer term.

That depends what you do with the cash.

[Username]

We have taken a looa out from the sale of Brennan Johnson. Future installments paid directly to the bank instead of us.

Was reading Kieran Maguire's explanation of it - apparently it's pretty common practice when big transfers occur.

We get the money up front from the bank, albeit less than the actual transfer fee to cover their interest, then they recoup the money from the buying club (Spurs in this case) directly in instalments.

Does the selling club get interest from the buying club, if payment is being spread over a few years? 

Lets assume you bought something from Currys (why would you do that?), say an expensive cooker or TV and you took it out over say 3 years. You would be charged interest based on the amount the repayment was spread over.

Is this any different?

There is interest charged on the loan so effectively we are worse off longer term.

That depends what you do with the cash.

Well it’s gone / going on wages, transfers, etc, you know the usual stuff that football clubs spend money on.

[Sniffer Dog (Admin)]

Suggest we start using this thread so that every other thread doesn't turn into a financial thread.

[The reds]

Suggest we start using this thread so that every other thread doesn't turn into a financial thread.

What’s your thoughts on the current situation?
Do you think we have anything to worry about

[Sniffer Dog (Admin)]

Suggest we start using this thread so that every other thread doesn't turn into a financial thread.

What’s your thoughts on the current situation?
Do you think we have anything to worry about

Meh.

[JollyLolly]

EXACTLY Sniffer, Meh!!!!!

[Liars Bar]

Come on Sniff, tell us all it’s going to be fine.

[JollyLolly]

Liars, If you recall EM came out with a statement earlier this week saying that his aim was top-end of the PL and European cup success. Do you think he would have made such a statement with full knowledge of problems with FFP? This was the words of confident owner who knows that all this paper/media/forum talk is utter bollocks! Sorry I said this on your behalf Sniff but things are looking up so why are so many doubting the club?

[Fumanchew]

I’m also wondering whether NES would have took the job if he knew something was gonna hit the fan so soon

[The reds]

I’m also wondering whether NES would have took the job if he knew something was gonna hit the fan so soon

Yes I thought this too.

[Paplane]

I’m also wondering whether NES would have took the job if he knew something was gonna hit the fan so soon

Yes I thought this too.

Hope they discussed this with him.