New Stadium Loan Debt

[jimms]

Why is it when my board either build a new stadium or buy a new stadium they always take out a large bank loan to do this.
In my Tottenham save we moved into a new 65,000 seater stadium 2 years ago, but the board took out a loan of £208Mil which is repayable in monthly instalments until 2046. We are rich and had no loan debt prior to the stadium move.
I am making the club money in transfer sales every window, and I won the champions league last season yet the loan debt is barely moving.
How can I get the loan debt cleared quicker?

 

[jimms]

anyone??

 

[McMonkey1066]

What was the clubs balance before building the stadium? If it was less than £208m I guess the club would have to borrow money to fund the project. Do you know the cost of the Stadium? I guess it could have been even higher and the club funded it in part from their balance and in part via a loan. Even if your balance before building the stadium was over £208m the club may have wanted to keep money in reserve (liquid assets?) to allow itself some financial manoeuvrability.

I expect it is common practice to take out a loan for such a big project as long as the projected financial benefits exceed the interest repayments on the loan. I expect that if you continue to manage the clubs finances well, turn a healthy profit each season and maintain a healthy balance the club will look at paying the loan off early. They will probably view it as a long term project instead of paying it off in one huge lump sum.

I'm very interested in learning more about how club finances work in FM so any figures you could provide would be very useful. In my current Everton game I'm trying to clear the clubs debts so that I can build a new stadium and hopefully attract new investment.

 

[McMonkey1066]

Just noticed your post was over a year ago. Hopefully you have already found out the answer to this query. If not perhaps the old save is still hanging around somewhere. 8-|