STFC Transfer Rumours

[Costanza]

Plus 1 permanent CF I reckon, just a hunch mind.

Probably. Some will think that this'll open the door for Ajose.

[Sir Pissalot]

Of course, but the money could be earmarked for repayment purposes as and when it comes in.

I have spotted a post by Reg that doesn't mention "the Tories" and I hereby claim the £5 prize.   

[horlock07]

I have spotted a post by Reg that doesn't mention "the Tories" and I hereby claim the £5 prize.   

 

[horlock07]

That looks more likely now as Everton have bought Holgate from Barnsley for £2m.

My first thought was Ashan Holgate??/

[horlock07]

Probably. Some will think that this'll open the door for Ajose.

To be fair some will probably think that it opens the door for Messi - that's just our supporters though.

[Power to people]

We wouldn't have got the cash for Mass/Gladwin in full yet, it will be spread over a period of time -there is unlikely to be a couple of mill burning a hole in Powers pocket from this as we speak.

We would most likely to have got some money up front, but do you think when we pay transfer fee's that we pay them all out at once - so the same applies we get x in at y time so we pay x out at y time for our transfer fee's.

Nobody knows how the deals were structured though, there are all sorts permutations - we don't even know 100% what we got and if there are sell on clauses or any other in the deals

[kaufman]

Power says very quickly on the phone in that we got 3.5mil for the pair.

[jayohaitchenn]

Thanks for sharing kaufman. Power comes across really well.

[Red and Proud]

To me sustainable means this. All our fixed and variable costs will be borne by the clubs income.

Straightforward enough. However, if the club encounters a cost that exceeds it's budgetary allowance then either the bank would step in to lend money or the directors loan money. Powers roll as the clubs legal owner is to make sure that the club is sustainable, where have we heard that before? Which is the way it should be. Where Power really comes into his own is when we need to pay for a player transfer fee (just talking finance here BTW).

The money he shells out is a directors loan which the club pays interest on to him until it can afford the capital repayment, then he gets his cash back and all is square. It goes without saying that on a decreasing scale every year powers input into the club has been a mixture of day to day running costs, legal costs and transfer fees. Eventually and this season may be the start that his only cash liability would be for a transfer fee.

[Skinny Pete]

I suppose what most fans would like to know is if Power lends the club £400,000 to buy Luongo who us then sold for, say, £2.5m, who retains the profit from any deal - Power or the club's bank balance.

If the club is never going to profit from these deals then we'd better be prepared for lower league football for the forseeable.

[michael]

^^ Good question.

[Reg Smeeton]

I suppose what most fans would like to know is if Power lends the club £400,000 to buy Luongo who us then sold for, say, £2.5m, who retains the profit from any deal - Power or the club's bank balance.

If the club is never going to profit from these deals then we'd better be prepared for lower league football for the forseeable.

It has more or less been always thus....

Historically, the Directors lent from a Bank, they would provide surety against some asset they may have owned....but when the bank manager came knocking then a player was flogged to keep them happy.  Perhaps if a good sale, then the bulk went on debt, and a modest sum was left to invest. So, for example Duncan Shearer was flogged, and maybe 80K was spent on Moncur.

Moncur was then flogged for a mill, so the process goes on, and the club keeps running.

Back in the days of Diamond Mike, no bank would touch the club with a barge pole.....maybe allow a current account, but certainly no lending facilities.  Since then we've had the Banker's inspired crash of 2008, so I can imagine it is still the case we have no lending facility, so the owner has to do it him/herself.

Therefore, we sell players now as then to keep the club running....this is all good as long as you have assets, once Kasim, Byrne and Smith have gone though, we're starting to look a bit thin.

[Skinny Pete]

So how is the club ever going to become sustainable if we never build up a reserve. Sure, at the moment, we can stumble through a season OK financially, but as you say, when the well of saleable assets runs dry we are, yet again, up shit creek.

[Reg Smeeton]

So how is the club ever going to become sustainable if we never build up a reserve. Sure, at the moment, we can stumble through a season OK financially, but as you say, when the well of saleable assets runs dry we are, yet again, up shit creek.

I'll worry if we don't invest a bit of the expected funds, from the sale of any or all of Kasim/Byrne/Smith.

I'd imagine Power sees BOO as someone who can become a saleable asset, Randall has so say already attracted interest...Brophy is another who they'll hope might develop....not so sure about Branco 

[Flashheart]

So how is the club ever going to become sustainable if we never build up a reserve. Sure, at the moment, we can stumble through a season OK financially, but as you say, when the well of saleable assets runs dry we are, yet again, up shit creek.

Has it not crossed your mind that perhaps, maybe, we will continue to invest in young potential as we have done since Power has been here. Why are people suddenly acting as though that will stop?