Other Club Transfers 2022

[PhilM]

Feels like they're gambling the house on the Super League being resurrected, and soon.

It certainly feels like they're speculating that there'll be a rise in revenue streams as essentially they've tied themselves into a twenty-five year mortgage.

Selling their TV rights and splurging significantly on transfers and wages all at once, while laboured with significant debts, is risky business.

Isn't it close to £500m they've agreed by selling 25% of their TV rights for the next twenty-five years? That'll still leave them in close to £1bn in debt.

 

[FCBarça]

It certainly feels like they're speculating that there'll be a rise in revenue streams as essentially they've tied themselves into a twenty-five year mortgage.

Selling their TV rights and splurging significantly on transfers and wages all at once, while laboured with significant debts, is risky business.

Isn't it close to £500m they've agreed by selling 25% of their TV rights for the next twenty-five years? That'll still leave them in close to £1bn in debt.

It's not a loan

They basically got a cash advance on future revenue - there is no debt involved there

 

[Nymzee]

It's not a loan

They basically got a cash advance on future revenue - there is no debt involved there

Well there are debts, you’re swimming in them.

 

[PhilM]

Well there are debts, you’re swimming in them.

And they've agreed to giving away a quarter of their most important revenue stream for the next quarter of a decade, which the hedge fund will make money on.

It's equivalent to selling some of your home to a financial provider for a life time mortgage. It may not be a loan in the purest term, but it's akin to one.

 

[Nymzee]

Baller this guy.

 

[FCBarça]

Well there are debts, you’re swimming in them.

All the clubs are in debt, some have more options to work their way out of them than others

 

[FCBarça]

And they've agreed to giving away a quarter of their most important revenue stream for the next quarter of a decade, which the hedge fund will make money on.

It's equivalent to selling some of your home to a financial provider for a life time mortgage. It may not be a loan in the purest term, but it's akin to one.

Guess you don't know what a loan is because in the case of Barca, they don't have to pay anyone back anything. They could buy back the rights during those 25 years (likely earlier than later) but they are not obliged to. They sell the rights and get the money up front. A Cash advance is not analogous to a loan

 

[Prevenger17]

Barcelona have come a long way from sponsoring Unicef on their jerseys and proclaiming themselves more than a club. If there is a more corrupt, odious entity in club football, I don't know what it is.

 

[PhilM]

Guess you don't know what a loan is because in the case of Barca, they don't have to pay anyone back anything. They could buy back the rights during those 25 years (likely earlier than later) but they are not obliged to. They sell the rights and get the money up front. A Cash advance is not analogous to a loan

As I said, it's not a loan in the purest sense.

However, are you genuinely saying they've sold them at face value and that the hedge fund will make no profit over the life time of the twenty-five year old?

If they have, it's not merely the money upfront. The projections (20-25% of rights) suggest that Barca may lose a minimum of £20m per annum to the fund.*

Simple maths would suggest that Barcelona are losing out in the long-term, and if they are it's equivalent to getting a lump sump and paying it off over time.

Like with a life-time mortgage, you don't have to pay anything back, but when you sell your estate you lose the % and all the natural increase over time.

*Projections suggest it's closer to a minimum of £30-40m per annum before inflation and increases due to new deals.

 

[Bungle]

Guess you don't know what a loan is because in the case of Barca, they don't have to pay anyone back anything. They could buy back the rights during those 25 years (likely earlier than later) but they are not obliged to. They sell the rights and get the money up front. A Cash advance is not analogous to a loan

Meet me outside the Spotify arena and lets have a scrap

 

[Goat]

Guess you don't know what a loan is because in the case of Barca, they don't have to pay anyone back anything. They could buy back the rights during those 25 years (likely earlier than later) but they are not obliged to. They sell the rights and get the money up front. A Cash advance is not analogous to a loan

But it is a loan.

Thats precisely what it is, a loan secured on future revenue.

Unless you are really dim and you think any company in the world gives "cash advances".


According to Sportico, if the latest proposal with Goldman Sachs goes through, Barca will have to pay back a total of US$1.5 billion in 35 years. This includes a five-year grace period to pay and interest fixed at three per cent to four per cent. The loan would also be the largest funding agreement in the club’s history.



Man out there thinking they secured an interest free loan.

 

[Nymzee]

But it is a loan.

Thats precisely what it is, a loan secured on future revenue.

Unless you are really dim and you think any company in the world gives "cash advances".


According to Sportico, if the latest proposal with Goldman Sachs goes through, Barca will have to pay back a total of US$1.5 billion in 35 years. This includes a five-year grace period to pay and interest fixed at three per cent to four per cent. The loan would also be the largest funding agreement in the club’s history.



Man out there thinking they secured an interest free loan.

"It's just our overdraft, be reet"

 

[FCBarça]

As I said, it's not a loan in the purest sense.

However, are you genuinely saying they've sold them at face value and that the hedge fund will make no profit over the life time of the twenty-five year old?

If they have, it's not merely the money upfront. The projections (20-25% of rights) suggest that Barca may lose a minimum of £20m per annum to the fund.*

Simple maths would suggest that Barcelona are losing out in the long-term, and if they are it's equivalent to getting a lump sump and paying it off over time.

Like with a life-time mortgage, you don't have to pay anything back, but when you sell your estate you lose the % and all the natural increase over time.

*Projections suggest it's closer to a minimum of £30-40m per annum before inflation and increases due to new deals.

Do you genuinely think you can get a cash advance without a premium? What’s the incentive for whomever is advancing the cash, hence hedge fund indeed profits - where did I imply they weren’t?

A loan is paid back, that doesn’t happen here at all

The projections are estimated to be €19M annually they give up in order to get the advance, the premium. It’s not a loss financially, it’s reduction in the maximum profits they can return

Moreover, they can buyback the rights at anytime- say via a lower interest loan than the premium once they continue to improve their finances. Laporta has been in office 17 months, huge progress in that time

 

[FCBarça]

But it is a loan.

Thats precisely what it is, a loan secured on future revenue.

Unless you are really dim and you think any company in the world gives "cash advances".


According to Sportico, if the latest proposal with Goldman Sachs goes through, Barca will have to pay back a total of US$1.5 billion in 35 years. This includes a five-year grace period to pay and interest fixed at three per cent to four per cent. The loan would also be the largest funding agreement in the club’s history.



Man out there thinking they secured an interest free loan.

Goldman restructuring of short term liabilities is a loan. Sixth Street sale of tv rights is not a loan.

 

[PhilM]

Do you genuinely think you can get a cash advance without a premium? What’s the incentive for whomever is advancing the cash, hence hedge fund indeed profits - where did I imply they weren’t?

A loan is paid back, that doesn’t happen here at all

The projections are estimated to be €19M annually they give up in order to get the advance, the premium. It’s not a loss financially, it’s reduction in the maximum profits they can return

Moreover, they can buyback the rights at anytime- say via a lower interest loan than the premium once they continue to improve their finances. Laporta has been in office 17 months, huge progress in that time

No I don't, hence why I'm associating it with a life time mortgage you can get on property. The FSA, here in the UK, classify life-time mortgages as loans.

It's all semantics anyway. Sources say Barca bring in circa €150m per year from TV rights: 25% would be €37.5m and twenty-five of those is a lot of money.

To buy those rights back would need capital, and where are they getting that from unless they're considering the super league occuring, which was the first point.

You've sold a large percentage of future mechanise revenue too. You're getting money up front, but the hedge fund will make a big profit from it over time.

It may not be a loan in your eyes, but I suspect they'll be laughing to their very healthy bank with whatever it's called.