Loan repaid

[johntoewba]

Yes. The Patel’s have paid it. Bikul Football.

Bloody hell we’ve hit the jackpot with these haven’t we? Fair play

[Fulham Fallout]

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

[Mullers]

Fantastic news - it puts to bed one of the loans and gives the club some much needed cash.

The contrast this week between us and a club like Reading couldn’t be starker. Our new owners have today repaid a loan to the club, incurred by our previous owners. Reading’s owners confirmed yesterday that they are very close to selling their training ground to Wycombe, a move which will likely kill any potential takeover for them.

It could have so easily been us.

[ElbowGrease1973 II]

What a contrast from our previous owner. The future is bright, the future is blue and white.

[Fulham Fallout]

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

[Pragmatist]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

[Hughie Reed 31]

Such a relief to have owners who care
I think we’re getting our club back.
COYB

[MrBater]

Fair play to the new guy, definitive tick in the positive column there.

[Fido]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

Arf. One more of these and ACCA or whoever will be knocking on FF’s door asking for that framed certificate above the fireplace back.

I did warn you earlier, FF, about embarrassing yourself. Stay the fugg out and wait for someone like Prag to answer the questions.

[CA Baggie]

Yep repaid in full as well as interest to Wisdom Smart. Well done Mr Patel

Huh?  It was owed by Wisdom Smart, not to Wisdom Smart!

The amount owed was deducted from the purchase price so that the repayment shows as “revenue” for FFP purposes due to it being a write back of the previous bad debt provision in the accounts

---

But do they have the financial qualifications? Eh?

Would you like to explain the financial implications of the loan being repaid?

I did post about this scenario (Patel takes on the debt and repays it) and why he’d do that, in the takeover thread.

Hurry up  

The answer is, because this Lon was previously written off in the Albion books and that amount was a charged to the profit & loss account.  That then had a bearing on FFP figures. 

This repayment not only adds a few million to the bank account, but the amount received will be credited to the profit and loss account.  This will therefore reduce our FFP losses by the same amount.

Not quite 100% correct as the loan was never written off.  It was merely fully provided for in the accounts as a doubtful debt.  It never ceased to be owed. 

For FFP purposes it’s the equivalent of selling an Academy player for £5m but without actually losing a player.

The difference between a provision and a write off.  I think some of of our #financial experts should stick to the #head chef threads.