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Cardiff apply for EFL loan


Lrrr

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Bit of an off topic rant and I hate to say it but I am jealous of Cardiff at times. They take risks, splash the cash and gamble. Sometimes it pays off, sometimes it doesn't. But at the end of the day they've had success and tangoed in the top flight and that's exactly what I want. At times I feel like we're really boring. 

You'll never catch me saying that again ?

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I think clubs aren't allowed to spend the loan on transfers specifically (which is right), but if a club has just gone out and spent millions on new players to then apply for this loan then they should either have the transfer value deducted from the available loan amount (too bad if your transfer value means you can't apply for the loan) or should be refused the loan and be forced to sell players. 

No other way clubs will learn. And people think Football will have to change its spending habits as a result of COVID impacts! 

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Not only are they in instalments, but Cardiff won't get the third payment.

The accounts for 2019 also show that they sold at least their first parachute payment in exchange for cash, which was all used to buy players post relegation.

Cash flow must be dire. 

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1 hour ago, Lrrr said:

Just signed 2 players, parachute payment club and yet they could receive an £8m loan from the EFL, why are clubs being allowed to use the fund if they're in effect using it to fund transfers.....

 

Just wrong isn't it

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Related subject, the FT over the past week has been scathing about the Premier League clubs access to these government funds versus how little their actual contribution has been to the EFL fund:

Quote

In recent weeks, the Gunners reclaimed the moniker by borrowing £120m through the central bank’s emergency Covid-19 lending scheme. 

English Premier League rivals Tottenham Hotspur, owned by Bahamas-based billionaire Joe Lewis, has also borrowed £175m through the so-called Covid Corporate Financing Facility. The Football Association, the national governing body that has suffered huge losses because of the pandemic, took on the same amount of debt through the CCFF.

Here’s the thing. The UK government made a point of excluding professional football from a £300m bailout to support the country’s ailing sports industry last year. Ministers did not want to be seen subsidising the wages of multi-millionaire footballers and losses of super-rich owners, like Kroenke and Lewis.

But clubs are benefiting from a taxpayer-funded rescue after all, and there are further complaints about how the government intervention is working in practice. 

Stringent criteria exclude weaker companies from obtaining cheap credit from the Bank of England. Smaller Premier League clubs have complained to the FT that low-cost borrowing for Arsenal and Spurs distorts the competition. 

Clubs in the Championship, which is run by the English Football League, must work even harder to secure financing. These teams, which play in the tier below the Premier League, are propped up by their owners, who pay 107 per cent of revenues in wages to their players in pursuit of promotion.

They are also far more reliant on match day revenues, which have been wiped out by the pandemic, than Premier League clubs, which benefit from billions of pounds in broadcast contracts.

The UK government has piled pressure on the Premier League to bail out Championship clubs. 

But as revealed by the FT this week, instead of providing cash itself, the top tier will cover just £15m of interest payments to help the EFL obtain financing from the CCFF, with the Bank of England money then passed to Championship clubs. It’s a piece of financial wizardry straight from a banker’s playbook.

In front of the cameras, the government often attacks the profligacy of football. Behind closed doors, through a convoluted form of state aid, it supports the game.

 

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They also have three court cases against them.

Emiliano Sala case could end up costing CCFC up to £25mill

Michael Isaacs suing for £10mill for his 2% stake in CCFC.

Langston suing for up to £15mill for an agreement Tan signed with them and has not been resolved.

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1 hour ago, phantom said:

Ashton just stated on radio we aren't making offers to resign players due to lack of cash flow. 

There's the answer 

Genuine question...

Do you mean Re-sign players, from Cardiff, or asking some of our current players to resign..? As in pay off their contracts...?

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1 hour ago, Bar BS3 said:

Genuine question...

Do you mean Re-sign players, from Cardiff, or asking some of our current players to resign..? As in pay off their contracts...?

re-sign, it was why Walsh, Pato etc haven't been offered new deals yet for those we want to keep around

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5 hours ago, Loco Rojo said:

Also, are there any incentives for well run clubs who don't apply for this loan? 

Yes.

You receive the loan- repayable out of future revenues- be it solidarity payments, or central awards.

That is £8.33m out of Future Revenues that you will no longer receive!

It's even better- Loans count against and help Balance Sheet and Cash Flow- whereas such Future revenue appears in P&L- £8.33m knocked out of future FFP relevant revenue!

That said I wouldn't say all clubs that apply for it are badly run- clubs such as Luton, Rotherham- maybe even Barnsley- would be very close to the mark and don't necessarily have wealthy owners in the first two, and are run very tightly in the second. Add Preston too?

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4 hours ago, Hxj said:

Not only are they in instalments, but Cardiff won't get the third payment.

The accounts for 2019 also show that they sold at least their first parachute payment in exchange for cash, which was all used to buy players post relegation.

Cash flow must be dire. 

Think it's 2 years for Cardiff IIRC? See you on the FFP thread?

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IF Cardiff are struggling with obligations, and remember this loan is designed solely for PAYE.

They can always send back Ojo and Wilson.

They can maybe look at selling Moore, Pack- or both.

Look at some combo of sending back those two loanees, sell one or two, loan out one or two more and recall one or two of the cheaper perhaps- promote some youth

There are many things they can do, many maybe that they should have to do-before recourse to such a loan IMO.

This loan is not to subsidise or free up cash for continued spending- this loan is to help clubs to navigate such choppy waters we're in atm!

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