Rangers bid for Croatian hitman Jelavic

[metlika 0]

It will be undisclosed

[Frankie 8,677]

Hoping its spread out over a long time...

 

Don't think bank is allowing us to pay in instalments now.

[metlika 0]

Don't think bank is allowing us to pay in instalments now.

 

Why? We could generate money over time to cover the fee. Although it might be a sensible business plan in the long run without any outstanding transfer fees to be paid.

[Frankie 8,677]

We had �£9million of outstanding fees late last year which we had to pay off.

 

Can't see the bank allowing us to build up the same type of figure again as CL income isn't guaranteed.

[Bluedell 5,716]

The bank will allow installments (it's beneficial to them, why wouldn't they?), but the club will need to be able to show that they can afford it looking at future cashflows under the business plan, and under the assumption of no CL football as you correctly say, Frankie.

[craig 5,199]

Cash is king. Which means instalments is preferable even to the bank - reason being that you can generate positive investment returns in that period between having to pay off the remainder of the fee (although, that said, the banks may be more conservative in that respect with the 2008 financial crisis). However, there is nothing to prevent them "carving" out the full cost of the transfer, paying in instalments and then investing the balance in govt bonds and treasuries - just so long as it isnt PIGS bonds (Portugal, Ireland, Greece, Spain) as those sovereign nations arent as secure as some others. even a 2% return on the bonds (achievable) generates a bit of income and helps lower the overall cost of the transfer.

 

It would be foolish to NOT pay by instalments if the other club are willing to go that route.

[Zappa 0]

When you take into account the size of our squad compared to what it was in the 08/09 season there's no reason why installments shouldn't be allowed by the bank. If you consider that we've either sold or let go - Fergie, Mendes, Beasley, Boyd, Thomson, Novo, Adam & Smith from the first team, then our yearly wage bill has been slashed by a conservative absolute minimum of �£4 million without counting bonuses. Even if we get this Croatian & another couple of players, the wage bill will still have been cut by a couple of million a year minimum.

[craig 5,199]

When you take into account the size of our squad compared to what it was in the 08/09 season there's no reason why installments shouldn't be allowed by the bank. If you consider that we've either sold or let go - Fergie, Mendes, Beasley, Boyd, Thomson, Novo, Adam & Smith from the first team, then our yearly wage bill has been slashed by a conservative absolute minimum of �£4 million without counting bonuses. Even if we get this Croatian & another couple of players, the wage bill will still have been cut by a couple of million a year minimum.

 

But that slashing of wages makes absolutely no difference to the bank if, at that time, we were in a negative cash position (or cash outflow) per annum of more than your 4 million.

 

Yes, we may have saved say 4 mill in wages per year - but if the savings still leave us in a net cash outflow position then those savings wouldnt necessarily be taken into account by the bank.

 

If we were in a cash breakeven situation when we made those savings then we should see cash increasing by that amount year on year - want to place a bet we dont see that ?

[Gazza_8 233]

Who's this Andrew Dickson chap?

 

I hope they flew economy class to Vienna.

[wabashcannonball 0]

http://www.austriantimes.at/news/Sports/2010-08-05/25737/No_offers_for_Jelavic%2C_Rapid_say