simplythebest 0 Posted December 10, 2012 Share Posted December 10, 2012 We're a football club in Scotland. We aren't going to be routinely making profits. OK, Celtic are having a good CL run this season but that's unexpected and it's unlikely that either of us will do anything similar in the near future. The main way for us to make profits is to scrimp on the footballing side, which is not what most of us want. I'd hope that investors would want to see their return through the growth in the share price and not dividends. Well we're already paying much more than we need for Scotland's bottom tier so some scrimping could actually be more sensible management. And you think it's realistic to attract these business investors with a possible rise in share price being the only way to make money? 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted December 10, 2012 Share Posted December 10, 2012 £15m loan at, say, 7% is £1m pa. Having £1m of additional costs is not splitting hairs. Plus we can be loss making but still be charged the interest, which can then be passed onto the shareholders. The loss is in the club but the holding company can be in a position to receive the income and dividend it to the investors without having to worry about the financial performance of the club. A guaranteed income. I can't say for sure that this is how it will work but everything seems to be pointing in that direction. The prospectus seemed clear dividends are not guaranteed. 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted December 10, 2012 Share Posted December 10, 2012 we won 3 in a row and went to manchester while the scrimped and paid dividends. we can be healthy while paying a dividend but its a fact that we would be healthier if we didnt pay it. no matter how health we are. Because Murray spent more money he did not have, then came Lloyds bank. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted December 10, 2012 Share Posted December 10, 2012 Because Murray spent more money he did not have, then came Lloyds bank. debts reduced by 30 million in that same 3 years. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted December 10, 2012 Share Posted December 10, 2012 so no need for a dividend then bluedell nor a profit. just internal debt hmmmmm. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,553 Posted December 10, 2012 Share Posted December 10, 2012 Well we're already paying much more than we need for Scotland's bottom tier so some scrimping could actually be more sensible management. And you think it's realistic to attract these business investors with a possible rise in share price being the only way to make money? I personally would prefer that every penny we have goes towards the football and not investors. I'm thinking like a fan and not an investor. We may not have got them onboard without the prospect of dividends but it doesn't mean that I have to be happy about it. Would we have got the Ticketus money without "guaranteeing" them future income? No, but it doesn't mean that I'm happy that we sold our future income last season. The prospectus seemed clear dividends are not guaranteed. Nothing in life is guaranteed. Dividends especially can never be guaranteed as the company needs to be profitable. However why would the the likes of LGIM invest if they did not have a commitment that they would get their return? With careful management the dividends can be all but guaranteed by keeping all costs in the club and just having interest income. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,553 Posted December 10, 2012 Share Posted December 10, 2012 so no need for a dividend then bluedell nor a profit. just internal debt hmmmmm. It's certainly one way of dealing with it. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted December 10, 2012 Share Posted December 10, 2012 celtc have paid a dividend every year without fail so far as i can tell. 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted December 10, 2012 Share Posted December 10, 2012 Can someone please write an article on this for the site? Not my field. I'm out!:smile: 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted December 10, 2012 Share Posted December 10, 2012 I personally would prefer that every penny we have goes towards the football and not investors. I'm thinking like a fan and not an investor. We may not have got them onboard without the prospect of dividends but it doesn't mean that I have to be happy about it. Would we have got the Ticketus money without "guaranteeing" them future income? No, but it doesn't mean that I'm happy that we sold our future income last season. Nothing in life is guaranteed. Dividends especially can never be guaranteed as the company needs to be profitable. However why would the the likes of LGIM invest if they did not have a commitment that they would get their return? With careful management the dividends can be all but guaranteed by keeping all costs in the club and just having interest income. Come on now BD, how can this even compare to ticketus? That was never sustainable for the club to have any kind of future, it wrote off three years of the main source of working capital. Yes in an ideal world we'd have some mega rich guy giving us money as a gift but it's not going to happen, unless the club is crippled in any way by it I'm very open minded about people making cash, after all the club may not have existed beyond the summer. 0 Quote Link to post Share on other sites More sharing options...
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