Danarouso Posted November 9, 2015 Share Posted November 9, 2015 I have just finished 12th as Leeds in the Premier League and since we are now in the money I decided to ask Cellino to buy back Elland Road in which he agreed to. Anyway, I get a news item saying the deal has been done and then another item says 'the Leeds board have pronounced the club to be in the best of financial health'. and says we've cleared the clubs debts, so I go to the clubs finances just to expect to see only our club value but instead it had 114m loan debt next to it. Why have we took a big loan like that when we are all good financially? Link to post Share on other sites More sharing options...
Some Guy! Posted November 9, 2015 Share Posted November 9, 2015 Depends on the terms of a loan. It can actually be beneficial to take out a low interest loan if you feel that the money you could have spent is better used elsewhere. That is, say you have $500,000 in the bank and want to buy a house. Depending on the terms of your mortgage, you could actually earn more money on that $500k properly invested than you pay in interest on the mortgage, hence making taking the mortgage despite having the money beneficial. Housing a probably a bad example actually, at least where I come from, as people actually invest money in housing because the rate of increase in value is high enough to make it worthwhile, but that's basically the idea. Link to post Share on other sites More sharing options...
eple Posted November 9, 2015 Share Posted November 9, 2015 At a guess the club already had a loan and when they bought the stadium the club took out a big loan to finance it, but also re-payed the previous loan in the process. I'm guessing the "Cleared the clubs debt" message was triggered by re-paying (effectively replacing) the old loan. Maybe? Link to post Share on other sites More sharing options...
Danarouso Posted November 9, 2015 Author Share Posted November 9, 2015 Hi guys, thank you for your replies This interestingly doesn't replace an old loan as that one still stands, but also I did notice about 10m went missing from our bank when we bought back Elland Road.. 410k is payable per month of this 103m loan and 20.36m interest is payable Link to post Share on other sites More sharing options...
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