04-08-2021, 12:18 PM
(04-08-2021, 10:16 AM)SW4Baggie Wrote:(04-08-2021, 09:39 AM)Kit Kat Chunky Wrote:(04-08-2021, 09:34 AM)Birdman1811 Wrote:(04-08-2021, 09:30 AM)Kit Kat Chunky Wrote:(04-08-2021, 09:28 AM)Birdman1811 Wrote: Indeed.Most banks have had their fingers burned lending to football clubs. I could tell you some horror stories.
However as shown in the past, in football it can be very risky business.
I've heard some.
It's why I've never been a supporter of us using much debt in the hopes of staying up, when really all it does it makes me harder to bounce back if you do go down.
I've known banks having to continue to support clubs, for fear of having damage to buildings and staff. A mate of mine who was Head of Credit at a bank was receiving death threats from the fans of one club.
It’s not surprising, you only have to look at the kind of abuse owners get when they’re still pumping millions in to keep teams afloat.
Understand why banks would be reticent to loan to football clubs, but I’m surprised more aren’t given the likes of Maquerie seem to be making 10-15% on what they lend!
It depends how you structure it. Lending against future income streams (with the security of a parachute to repay you), or a transfer fee as Maquerie do is relatively safe for the lender. When you go beyond that, you are asking for trouble.