Grandstand Update

[Keepitgreen]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

 

[Ade the green]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

If you mean the PCC debt to offer to pay the football creditors debt? That has been repaid. It was initially £800,000 although not every creditor decided to take up the offer but it did save £500,000 of the original debt and balloon payment.

 

[Keepitgreen]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

If you mean the PCC debt to offer to pay the football creditors debt? That has been repaid. It was initially £800,000 although not every creditor decided to take up the offer but it did save £500,000 of the original debt and balloon payment.

I read this as that at the end of August last year we had repaid £220,000 of the £600,000 loan. Are you saying that we've cleared the remaining £380,000 since last August?

Q3: Was the £800,000 loan from Plymouth City Council two years ago to ‘bail out’ the club?
A3: No. The loan was taken out to pay amounts due to some previous football creditors early. It benefited those creditors who wanted their money before it fell due, and benefited the club in the shape of an early-payment discount. Around £600,000 of the loan was utilised and around £380,000 remains outstanding, the balance having been repaid, together with interest at a commercial rate.

 

[Ade the green]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

If you mean the PCC debt to offer to pay the football creditors debt? That has been repaid. It was initially £800,000 although not every creditor decided to take up the offer but it did save £500,000 of the original debt and balloon payment.

I read this as that at the end of August last year we had repaid £220,000 of the £600,000 loan. Are you saying that we've cleared the remaining £380,000 since last August?

Q3: Was the £800,000 loan from Plymouth City Council two years ago to ‘bail out’ the club?
A3: No. The loan was taken out to pay amounts due to some previous football creditors early. It benefited those creditors who wanted their money before it fell due, and benefited the club in the shape of an early-payment discount. Around £600,000 of the loan was utilised and around £380,000 remains outstanding, the balance having been repaid, together with interest at a commercial rate.

When is this from because whilst not in the know, I do remember reading that this was paid. It was something to do with the balloon payment which was due in October last year, of which the loan helped to reduce that by £500,000, after which the PCC loan was repaid. As I understand it.

As I read it, the balloon payment was £1.5 but reduced to £700,000 by most of the creditors taking up the offer. Remembering that before the balloon there was to have been 2x £200,000 payments to be made. This is what allowed the club to pay off the PCC loan as I understand it.

 

[HC Green]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

If you mean the PCC debt to offer to pay the football creditors debt? That has been repaid. It was initially £800,000 although not every creditor decided to take up the offer but it did save £500,000 of the original debt and balloon payment.

I read this as that at the end of August last year we had repaid £220,000 of the £600,000 loan. Are you saying that we've cleared the remaining £380,000 since last August?

Q3: Was the £800,000 loan from Plymouth City Council two years ago to ‘bail out’ the club?
A3: No. The loan was taken out to pay amounts due to some previous football creditors early. It benefited those creditors who wanted their money before it fell due, and benefited the club in the shape of an early-payment discount. Around £600,000 of the loan was utilised and around £380,000 remains outstanding, the balance having been repaid, together with interest at a commercial rate.

At the last Senior Greens meeting John Morgan said the PCC loan had been repaid.

 

[Keepitgreen]

The question of is the club in debt is an area that both kentishgreen and swimwiththetide are both correct if , as I think, the difference in opinion relates to Directors Loans. These are often considered as quasi capital ( so not debt) - all depends on terms and your view. If the loan is long term with no defined/ minimal capital repayments and a low rate of interest then generally I think that's seen as quasi capital. With no "third party" debt (as far as I know) the other usually considered factor of postponement (who gets paid first in a wind up) doesn't apply to the club. So a mute point but usually better to owe a party that has an integral interest in the success of the company as likely to be most supportive type of founder if things get sticky.

"About £900,000 is coming in through a new equity issue of shares and then £4.1m is a loan coming in from Simon and his wife, Jane.
"That is going to be repaid over a 30-year period and has a very low interest rate of under three per cent.


That is debt however which way you look at it. Aren't we also in debt to PCC?

If you mean the PCC debt to offer to pay the football creditors debt? That has been repaid. It was initially £800,000 although not every creditor decided to take up the offer but it did save £500,000 of the original debt and balloon payment.

I read this as that at the end of August last year we had repaid £220,000 of the £600,000 loan. Are you saying that we've cleared the remaining £380,000 since last August?

Q3: Was the £800,000 loan from Plymouth City Council two years ago to ‘bail out’ the club?
A3: No. The loan was taken out to pay amounts due to some previous football creditors early. It benefited those creditors who wanted their money before it fell due, and benefited the club in the shape of an early-payment discount. Around £600,000 of the loan was utilised and around £380,000 remains outstanding, the balance having been repaid, together with interest at a commercial rate.

When is this from because whilst not in the know, I do remember reading that this was paid. It was something to do with the balloon payment which was due in October last year, of which the loan helped to reduce that by £500,000, after which the PCC loan was repaid. As I understand it.

As I read it, the balloon payment was £1.5 but reduced to £700,000 by most of the creditors taking up the offer. Remembering that before the balloon there was to have been 2x £200,000 payments to be made. This is what allowed the club to pay off the PCC loan as I understand it.

I was just going by this:

PAFC

 

[stewthenoo]

A little disappointed about the viability excuse regarding the solar panels. I admit I am no expert but installing solar panels on the rear of the new grandstand wouldn't cost much in football terms (1 win in the JPT should cover the cost). I guess that the cost will able to be paid back in roughly 10 years also as well as save money on bills and be good for our image.

But hey, I know nothing about how to run a football club and was grateful for the chance to comment.

The trouble is the Club have left it late for consideration. I first put solar panels on one of our properties 6 years ago when the feed in tariff was circa 44p. The last I heard it was circa 10p per kilo watt unit. as an investment it is not now exactly very lucrative, even though the panels themselves have reduced in price. At best, it would generate some cash flow during the closed season.

It's not so much the income from generating excess electricity, but more not paying a bill on what is used. With the inclusion of batteries to harness the extra energy, further savings can be made.