Should we expect the club debt to start reducing

[scottyboy007]

The debt is not the issue - a company does not go under due to debt... the issue is cash flow, as long as you can fund the debt its not a problem at all!!

Interest rates are at a low... so debt is not a necessary a bad thing.... especially given the wealth of our owners, we know they have cash if it is required to fund the debt!

[rangerforevereastcote]

The debt is not the issue - a company does not go under due to debt... the issue is cash flow, as long as you can fund the debt its not a problem at all!!

Interest rates are at a low... so debt is not a necessary a bad thing.... especially given the wealth of our owners, we know they have cash if it is required to fund the debt!

our debt is to the owners thats the point, they can call that in anytime they choose, they will also have apreferential interst rate on that loan, whether it will be 0% or 20%

[scottyboy007]

our debt is to the owners thats the point, they can call that in anytime they choose, they will also have apreferential interst rate on that loan, whether it will be 0% or 20%

but that is football for you...... all the top clubs in the world are in the red with the owners funding it..... these guys are top business men and will always cover themselves if the day comes when they want to get out and recover the funds they have put into the club......

i doubt men of their means would let the club go under (bad PR) they would sell the club onto someone else

re the loan..... its their money so if they want to get some interest out of it then so be it..... either way it doesnt really change the fact the ABC loan was paid off by their own money.

I dont think the funding of the club should be a concern for the fans.

[davman]

but that is football for you...... all the top clubs in the world are in the red with the owners funding it..... these guys are top business men and will always cover themselves if the day comes when they want to get out and recover the funds they have put into the club......

i doubt men of their means would let the club go under (bad PR) they would sell the club onto someone else

re the loan..... its their money so if they want to get some interest out of it then so be it..... either way it doesnt really change the fact the ABC loan was paid off by their own money.

I dont think the funding of the club should be a concern for the fans.

Doesn't make it right though, does it? All that you have said is fine if we're talking a BIG club with no shortage of people ready to take it on. We never had that many willing to do so when we were cheap, let alone the over-inflated valuation we have right now. £100m for Bernie's share puts the price of QPR at £150m BEFORE you start talking about the debt - REALLY?

Also, Pompey 's owner called in the debt and they are VERY lucky to only have fallen one league (for now anyway).

And on your last point, you are correct, it shouldn't be. So, bury your head back in the sand and don't worry about it.

Realistically, there's nothing we can do about it; QPR is owned by others, so what can we do anyway, but its always worth worrying...

[2touch]

General consensus used to be that a bank the size of Lehman Brothers was too big to fail. The banking system was impregnable etc...

Whilst I can't imagine a situation when all clubs go down like dominoes as finances of clubs are not as interdependent as banks are and therefore the same amount of systemic risk does not exist, I do think it is only a matter of time until things have to change. I am talking about leagues such as the PL in general. This whole ridiclous set of balance sheets can't go on forever, and wages can't keep rising like this forever. Something's got to give! When it does happen, and things start to get unwound, I would expecct English football to sit in the doldrums for some time, whilst better run leagues such as the Bundesliga start to take over. In my opinion, it is a question of when and not if this will happen.

[scottyboy007]

Doesn't make it right though, does it? All that you have said is fine if we're talking a BIG club with no shortage of people ready to take it on. We never had that many willing to do so when we were cheap, let alone the over-inflated valuation we have right now. £100m for Bernie's share puts the price of QPR at £150m BEFORE you start talking about the debt - REALLY?

Also, Pompey 's owner called in the debt and they are VERY lucky to only have fallen one league (for now anyway).

And on your last point, you are correct, it shouldn't be. So, bury your head back in the sand and don't worry about it.

Realistically, there's nothing we can do about it; QPR is owned by others, so what can we do anyway, but its always worth worrying...

Let me ask you a question: Would you be happy if QPR had no debt and all the investment was directly covered out of the owners pockets?

So the QPR P&L would so no debt, still owned by Flav, Bernie & Mittal?

Personally for me it makes no difference at all...... as they can decide to cash in whenever they want... sale every player.... take the ground and build flats on it and be even more minted......

So whether QPR has a debt or not makes very little difference........

[rangerforevereastcote]

Let me ask you a question: Would you be happy if QPR had no debt and all the investment was directly covered out of the owners pockets?

So the QPR P&L would so no debt, still owned by Flav, Bernie & Mittal?

Personally for me it makes no difference at all...... as they can decide to cash in whenever they want... sale every player.... take the ground and build flats on it and be even more minted......

So whether QPR has a debt or not makes very little difference........

not sure if am confused with your statement , qpr do have debt, the board have merely lent us the money and can at any time decide to sell a player the club etc if and when they want the cash back, i bet you that the reason our transfer budget not so big cos they have had some of their money repaid, so whilst our owners are happy borrowing of them better then a bank (who wouldnt lend as we are a loss making club) but the minute they want the money back (if they ever do) we are fkd

[davman]

Let me ask you a question: Would you be happy if QPR had no debt and all the investment was directly covered out of the owners pockets?

So the QPR P&L would so no debt, still owned by Flav, Bernie & Mittal?

Personally for me it makes no difference at all...... as they can decide to cash in whenever they want... sale every player.... take the ground and build flats on it and be even more minted......

So whether QPR has a debt or not makes very little difference........

Can't disagree with that, but I would still be happy if the accounts showed that they had *invested* rather than loaned us money. When it comes to selling, future investors have to look at the debt associated with the club and not just its valuation; a debt free company would be much easier to sell on that one saddled with a debt greater than the club's assets, but as you say, that's their problem...

[rangerforevereastcote]

Can't disagree with that, but I would still be happy if the accounts showed that they had *invested* rather than loaned us money. When it comes to selling, future investors have to look at the debt associated with the club and not just its valuation; a debt free company would be much easier to sell on that one saddled with a debt greater than the club's assets, but as you say, that's their problem...

its not their debt its qpr's all the money put in will be in loan notes secured against the various assets, trust me thats how it happens in all businesses when "investors" put heir money in\\