What will happen to the debt?

[Graham Paddons Beard 2,424]

According to various reports City have a debt of around £8 million. As many of us know, in business "debt" is a curious thing, but lets say we owe this figure to the bank.

Do we think it would be prudent to pay this back next year? Does it matter? Do we think that some of the money Delia has given/loaned the club will now be repaid?

I wonder if any provision was made when the re finance occured as to payment terms should the income dramatically increase (ie promotion)

Oh, and by the way , as a shareholder I will be retiring on the dividends that I have made, so this is my last post. Goodbye from sunny Bury St Edmunds.

[At last? 0]

As a shareholder, you will know most of the debt is structured and long term. I suspect the board will be prudent enough to clear the expensive debt, and invest what they can afford on players / stadium etc.

Lets just say if Delia writes another book, make sure we all buy it.

[Freddy H 0]

Unfortunately the debt will get bigger and bigger as the seasons roll on. Most people seem to think that we need 5 players for next season, if we pay them Prem wages £15,000 pw thats £4M added per year. And if we pay the current 25 players another £5,000 pw thats another £6.5M. Add to that the transfer fees and you £15M Sky money has gone. So I cannot see how the debt will be reduced.

[sheded 0]

That sum is chicken feed in the prem ! , Man city paid 50 million on "players" and they are looking at the big drop ! surely an example to our club on how not to do it !!!

Lets have some of "Delia" brand fast food commercialisation ! :o)

[milan marcus 0]

Sorry Freddy but:

I do not believe most people think we need 5 players - I think 2 maybe 3 free transfers would be ok plus Cooper - Therefore thats about £2.5 million

Why pay £5,000 extra for 25 players maybe £5,000 for 15 players thats £4 million

We will also being reducing salary i.e Roberts plus others

There will also be more money from bigger gates more pies etc !

There would be a surplus of about £8 million which if we are sensible would be used to pay off expensive debt as already suggested but also keep some in reserve for a transfer budget if and when we need it.

We need to be level headed this team has got us where we are lets invest in a bit of quality but keep the team together and ride our luck because I believe we may just surprise a few people

Up the city !

[beelsie 0]

Whether the debt is long term or short term, matters little. It is still a debt and as one contributor points out it increases year on year, as will the wage bill draw on gate receipts etc. At the present moment the deficit is more like £20,000,000 all told. It will not be realistic to imagine for one moment that gate receipts will be equal to capacity, because the price of admission going up for many of our regular fans means they may not be able to afford the price increases that will be looked for to furnish the revenue required to maintain Prem status. They unfortunately are stretched to the limit financially as it is. I am personally aware that to go to see Norwich City at home from King''s Lynn for a father and son comes close to a £100 outlay for 1 match. For a family with a mortgage this can be crippling.
There will be many of the fans who are at the moment travelling from the west and southern regions of Norfolk who may well be attracted to the prices sought by King''s Lynn when they are promoted all be it to 3rd division football. Distance travelled plus increased prices may well be a last straw for them. After all many will consider that the best of both worlds will be to watch the big boys on sky and stay at home and watch a third division match for a fiver. Pocketing a considerable amount of money in the process. I for one will remain in support because I will afford it, unfortunately there are many who will not be able to. OTBC!!!!