Re: Wrexham finances explored with expert Kieran Maguire
Quote:
Originally Posted by FrenchCanada
I haven't listened but here's my thoughts:
RE: Losses - An analogy we can think about is a rental property. Perhaps rental income didn't cover minor repairs, mortgage interest, property taxes, other costs for the year. But the value of the property went up 50k so the owner 'isn't worried'. Cash flow negative, but net worth positive.
RE: Loan/Interest rate - What the loan is allowing the club to do (buy the ground freehold, build the new stand, etc) is worth the prime+3% a year which is probably a going rate at this time. A premier league club I support has an average debt rate (we're talking close to $200 million of debt) of 5.75% and keep in mind a lot of that was taking out when interest rates were lower/they have some fixed terms.
RE: Documentary - The 2023 books will really highlight the impact the documentary has directly on club turnover. My understanding is most of the docu money goes to a holding co of R&R but that's just more $$$ they'll have to invest in the club.
Great days ahead!
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'A premier League club I support' split loyalties eh?
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"The night when it was confirmed that Wrexham could no longer preserve their league status was one of the saddest of my life" Mickey Thomas - Kickups, Hiccups, Lockups
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