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Premiership Clubs Government Loans


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Celtic the only club to refuse a government loan, Rangers taking out the highest loan at 3.2m.

Think most of this will cover a lot of the COVID losses for clubs, will also go a long way to putting a plaster over big losses at Dundee Utd for the time being

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33 minutes ago, topcat(The most tip top) said:

Do the government loans take priority over other creditors?

Unlikely. These will be last in line in a winding up. I'd say they're as good as an injection of capital, except for FFP rules. 

Edited by coprolite
Checked-Assuming these are CBIL loans they're from 3rd parties but backed by the govt. The scheme rules say a borrower can provide security. That sounds like extra admin if the things government backed anyway. Could be secured, but unlikely
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10 minutes ago, Suspect Device said:

What is the interest rates?

If they're low/zero then it's a no brainer to take them.

Quote

And the share prospectus disclosed the loan of £3.2m provided by the Scottish Government.

It said: “This loan is interest free and to be repaid in equal monthly instalments commencing September 1, 2022 and continuing to August 2042."

So assuming we (Motherwell) use the full credit that's been extended to us we're paying back £147,950 p/a.

As you say, it's a no brainer.

Edited by capt_oats
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51 minutes ago, Archie McSquackle said:

If it's a no-brainer why have only Rangers taken the full amount available to them. A few other clubs are close to it but others have taken considerably less.

Because you've still got to make the repayments, I guess. Hell of a thing to saddle the club with in the long term, unless you literally put the money to one side and save it for an emergency, just using it for the repayments.

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59 minutes ago, Archie McSquackle said:

If it's a no-brainer why have only Rangers taken the full amount available to them. A few other clubs are close to it but others have taken considerably less.

The most plausible theory would be that as well as a hard limit the loans were capped at a proportion of turnover, just as furlough payments were based on previous income

ETA 
I've just seen Motherwell are near the top of that list so I'm not so sure now

 

Edited by topcat(The most tip top)
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Despite being a shareholder and 'Well Society "owner" - I've got no particular special knowledge other than stuff I've heard at AGM's etc -  but I think the club have basically looked at all the structural stuff we have to do (both in terms of bricks and mortar and strategic stuff like the academy and training ground improvements) and concluded that this will be the cheapest way we will ever be able to finance it given that we don't have a rich owner or a credit rating worth anything. 

 

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2 minutes ago, TheScarf said:

Every Rangers fan I've spoken to in the last 3 years.

Could it be that they're actually saying we have a group of wealthy investors that have been willing to cover any losses suffered? Because that would actually be the truth rather than the club itself being minted.

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3 hours ago, Coventry Saint said:

Because you've still got to make the repayments, I guess. Hell of a thing to saddle the club with in the long term, unless you literally put the money to one side and save it for an emergency, just using it for the repayments.

Put it aside into Bitcoin for 20 years :D 

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