• Participation within this subforum is only available to members who have had 5+ posts approved elsewhere.

Other Club Transfers 2022

Status
Not open for further replies.
PhilM said:
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.
Click to expand...

You still are making poor comparisons and failing to understand the finances

Mortgages still require you to make payments, and if you default on them you risk losing whatever you have mortgaged. There are no payments to make back since the collateral will be delivered via the tv rights, not the club - there is nothing to default

It's not a loan in anyone's eyes but those who don't understand the fundamental basics of finance. Look up purchase of future receivables, it's not a loan
 
FCBarça said:
You still are making poor comparisons and failing to understand the finances

Mortgages still require you to make payments, and if you default on them you risk losing whatever you have mortgaged. There are no payments to make back since the collateral will be delivered via the tv rights, not the club - there is nothing to default

It's not a loan in anyone's eyes but those who don't understand the fundamental basics of finance. Look up purchase of future receivables, it's not a loan
Click to expand...
A life-time mortgage doesn't. You sell a piece of equity (like Barca have with their TV deal) and it's repaid when the estate is sold, delivered by the executors.

The FSA classify is as a form of borrowing - a loan. As I said, it's not a loan in the purest sense, but in essence its close enough in terms of both parties.
 
FCBarça said:
It's not a loan in anyone's eyes but those who don't understand the fundamental basics of finance. Look up purchase of future receivables, it's not a loan
Click to expand...
It’s a form of Securitisation which was used a lot in M&A activity in the late 90’s and early 2000’s. Capital provision secured against future income. Any future income is of course dependent on market conditions during the period of the arrangement. So those companies that had securitisation finance during the financial crash, when all their “projected” revenues went south ended up blammo.
It is a largely discredited method of financing. Good luck with it all.
 
Barcodes looking for loans cos they don't want to pay premium prices now they're the riches club in the world.

Sensible

But you ain't winning things like that.
 
Alan Whittle said:
It’s a form of Securitisation which was used a lot in M&A activity in the late 90’s and early 2000’s. Capital provision secured against future income. Any future income is of course dependent on market conditions during the period of the arrangement. So those companies that had securitisation finance during the financial crash, when all their “projected” revenues went south ended up blammo.
It is a largely discredited method of financing. Good luck with it all.
Click to expand...

ah so you're suggesting the TV rights are going to suddenly vanish? Increase (likely) or decrease in the annual revenue changes little since everything is predicated on percentages and Barca already have cash in hand up front. Moreover, the buyback allows them to recouperate in short time to minimize that lost revenue by taking out a loan at a reasonable rate to mitigate the high margin they gave up to secure the initial provision

The alternative? Flounder for years while gradually trying to get into the black while tv rights would surely decrease with a poor sports project
 

FCBarça said:
ah so you're suggesting the TV rights are going to suddenly vanish? Increase (likely) or decrease in the annual revenue changes little since everything is predicated on percentages and Barca already have cash in hand up front. Moreover, the buyback allows them to recouperate in short time to minimize that lost revenue by taking out a loan at a reasonable rate to mitigate the high margin they gave up to secure the initial provision

The alternative? Flounder for years while gradually trying to get into the black while tv rights would surely decrease with a poor sports project
Click to expand...
Uh huh.
 

PhilM said:
A life-time mortgage doesn't. You sell a piece of equity (like Barca have with their TV deal) and it's repaid when the estate is sold, delivered by the executors.

The FSA classify is as a form of borrowing - a loan. As I said, it's not a loan in the purest sense, but in essence its close enough in terms of both parties.
Click to expand...
Oh my God, a thread where the pros and cons of reverse mortgages are being intelligently discussed in the context of Barca and their rights sale.

I love you all.
 

Status
Not open for further replies.

Welcome to GrandOldTeam

Get involved. Registration is simple and free.

Register
Back
Top