Lrrr Posted January 25, 2021 Report Share Posted January 25, 2021 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..... Link to comment Share on other sites More sharing options...
Lanterne Rouge Posted January 25, 2021 Report Share Posted January 25, 2021 It`ll be interesting to see if they get it. They shouldn`t but I bet they will. Link to comment Share on other sites More sharing options...
Spoons Posted January 25, 2021 Report Share Posted January 25, 2021 No doubt Derby and Sheffield Wednesday will be next. Link to comment Share on other sites More sharing options...
Sturny Posted January 25, 2021 Report Share Posted January 25, 2021 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 Link to comment Share on other sites More sharing options...
Loco Rojo Posted January 25, 2021 Report Share Posted January 25, 2021 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! Link to comment Share on other sites More sharing options...
Loco Rojo Posted January 25, 2021 Report Share Posted January 25, 2021 Also, are there any incentives for well run clubs who don't apply for this loan? Link to comment Share on other sites More sharing options...
myol'man Posted January 25, 2021 Report Share Posted January 25, 2021 Still haven't paid for Emiliano Sala yet. Nor paid promised compensation to his family. Link to comment Share on other sites More sharing options...
Admin phantom Posted January 25, 2021 Admin Report Share Posted January 25, 2021 Are parachute payments lump sums or paid in instalments? if it's instalments it would make sense with the lack of cash flow Link to comment Share on other sites More sharing options...
Hxj Posted January 25, 2021 Report Share Posted January 25, 2021 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. Link to comment Share on other sites More sharing options...
Admin phantom Posted January 25, 2021 Admin Report Share Posted January 25, 2021 Ashton just stated on radio we aren't making offers to resign players due to lack of cash flow. There's the answer Link to comment Share on other sites More sharing options...
Davefevs Posted January 25, 2021 Report Share Posted January 25, 2021 Loan is supposed to be cover PAYE. Link to comment Share on other sites More sharing options...
BigTone Posted January 25, 2021 Report Share Posted January 25, 2021 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 Link to comment Share on other sites More sharing options...
Olé Posted January 25, 2021 Report Share Posted January 25, 2021 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. Link to comment Share on other sites More sharing options...
BobbyC Posted January 25, 2021 Report Share Posted January 25, 2021 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. Link to comment Share on other sites More sharing options...
Slacker Posted January 25, 2021 Report Share Posted January 25, 2021 Shameless club. Link to comment Share on other sites More sharing options...
Bar BS3 Posted January 25, 2021 Report Share Posted January 25, 2021 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...? Link to comment Share on other sites More sharing options...
Lrrr Posted January 25, 2021 Author Report Share Posted January 25, 2021 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 Link to comment Share on other sites More sharing options...
YorkshireSection Posted January 25, 2021 Report Share Posted January 25, 2021 Why don't they ask the WFA, its what they've done in the past for on field matters, let them rot. Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted January 25, 2021 Report Share Posted January 25, 2021 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? Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted January 25, 2021 Report Share Posted January 25, 2021 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? Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted January 26, 2021 Report Share Posted January 26, 2021 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! Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted January 26, 2021 Report Share Posted January 26, 2021 One more thing. A week won't make a difference probably between admin or not- but just to be certain this is not misused, no loan approvals, let alone payments, should occur prior to the end of the January window. Not one. Talking solely with respect to the Championship PAYE loans here. Link to comment Share on other sites More sharing options...
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