A theory that might partially explain Deano's thinking..

Sluffy wrote:

wanderlust wrote:

Sluffy wrote:So...

Holdsworth BORROWS £7.5 million to pay the tax bill and get us through to the end of July and then BORROWS another (according to your theory) £6 million simply to pay off some of the players from our wage bill and survive to the end of July 2017.

Brilliant, we would start 2017/18 season in Division 1, with half a squad and £13.5 million in debt!

Not quite, but basically yes. In fact that's one of the better scenarios.

He's borrowed the money for this year but he said the plan was to borrow a further £12.5 million over the next 3 years (£4 mill and a bit per annum on average) to lend to the club. If he can.
So that's £20 million that will need to be paid back with interest including the £7.5 for this year.
Next year our running costs will be around £12 or 13 million again of which at least £7.5 million will be wages of which £6million or so will go to just 10 or 11 players. That's after loads of players leave this summer.

So providing we can survive - basically if we can borrow the money to survive - we'll be shut of most of the high earners apart from Clough and Amos who are contracted for another 2 seasons by the beginning of the 2017/18 season. 

As you point out, at that stage we'll have a massive debt BUT the level of borrowing and subsequent debt can be kept to a minimum by offering to pay part of the wages to offload them.

And we'll still exist.

So...

We BORROW £20 million and spend it on surviving until the end of next season having paid off some/most of the players still on high wages and are therefore unable to build a squad to be competitive in Division 1, whilst presumably have interested added to that loan at I would imagine to be a high rate (let us just say 10% for easy reckoning).

Brilliant we would now start 2017/18 season in Division 1 (maybe even Division 2!), with half a squad and £22 million in debt!

What could go possibly wrong then?




Just for reference Bristol City who got promoted as league champions last season made a trading loss that year (after tax) of £13 million, Milton Keynes who came up with them lost £2.5 million and Preston completed the hat trick by making an after tax loss of £1 million.

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wanderlust wrote:Well maybe our premiership wage players will start to play vaguely like premiership players and get us promoted? 

wanderlust wrote:So maybe the plan all along was to offload the high earners by subsidising their wages for the contract period and just take a hit? This could be done either for a loan deal or a permanent signing (wherein the club would subsidise the wage until the current contract expiry date is reached)

In theory, we could do deals where our liability averaged a third to a half of the salary so instead of paying out £6 million for ten overpaid ponces we'd only pay £2 to £3 million for them to play for other clubs - and that would be manageable to see us through to the end of their contracts.