B.....careful

[levraiclaret]

How not to run a Championship club

https://www.bbc.co.uk/sport/football/47691385" onclick="window.open(this.href);return false;

[thatdberight]

And before we get too sanctimonious, let's remember how ugly things would have looked for us if we hadn't edged out Sheff U at Wembley.

[levraiclaret]

Indeed there was an element of financial risk during that season but nothing like the scale of the clubs featured.
The main risk came from the financial crisis and the requirement of the Modus loans to be immediately repaid.
The subsequent reluctance of the Board to "bet the ranch" indicates that lessons were swiftly absorbed and the last ten years have been a exemplar of financial prudence and rectitude. So you could excuse Burnley fans a little sanctimony. But I expect you won't.

[dsr]

And before we get too sanctimonious, let's remember how ugly things would have looked for us if we hadn't edged out Sheff U at Wembley.

The sale of McCann especially, plus Paterson, Elliott, and others, would have raised all the money necessary to service the debts. As I understand it, the terms of Flood's loan were that it wasn't repayable unless we got promoted to the Premier.

[TVC15]

The sale of McCann especially, plus Paterson, Elliott, and others, would have raised all the money necessary to service the debts. As I understand it, the terms of Flood's loan were that it wasn't repayable unless we got promoted to the Premier.

Doubt that very much - we would have lost around £10m without promotion....our best players were not worth that much.
As for Flood’s loans i’ve read that before but never seen any evidence. Modus went into receivership so I can’t see how the loan would not have been called in.

[thatdberight]

We might not have ended up in the same sort of mess as Bolton but it would have been ugly. We gambled that living beyond our means would pay off. That's what those clubs have done. In some ways, it's just that the payout is higher now so the stakes are higher too.

[dsr]

Doubt that very much - we would have lost around £10m without promotion....our best players were not worth that much.
As for Flood’s loans i’ve read that before but never seen any evidence. Modus went into receivership so I can’t see how the loan would not have been called in.

A company going into receivership doesn't change the terms of the loan. It just makes the receivership period last longer, or else someone else (either the successor company, or a finance house) will buy the loan at a discount.

[thatdberight]

A company going into receivership doesn't change the terms of the loan.

Do we know the terms of the loan? It might have been capable of being called in either at Modus' convenience or in certain circumstances.

[dsr]

Do we know the terms of the loan? It might have been capable of being called in either at Modus' convenience or in certain circumstances.

No, I don't know the terms, except that it was an unsecured loan. It was said at the time that the interest was not chargeable and the loan was not repayable until we got promotion.

[SGr]

The bubble is bursting for a number of clubs at once

[TVC15]

No, I don't know the terms, except that it was an unsecured loan. It was said at the time that the interest was not chargeable and the loan was not repayable until we got promotion.

As I said where was it said at the time ?
After working in commercial banking most of my life and also having many football clubs as my customers I would be very surprised to see a loan that was not repayable if certain events took place - and administration would usually be one of those events.

[claptrappers_union]

We played most of that season under a transfer embargo

[claretblue]

no mention of Bortsmouth or Bigan!

[Woonderbah]

Boro's parachute money ends now doesn't it ?

[GodIsADeeJay81]

Boro's parachute money ends now doesn't it ?

Yeah but Gibson will carry on underwriting their losses.