The cost of a loan.....and a football club

[Shack Attack 0]

An interesting interview in The Guardian today with David Sullivan, the co-owner of Birmingham

http://football.guardian.co.uk/comment/story/0,,2177735,00.html

"Birmingham''s co-owner has just learned that Borja Oubina is unlikely to play again this term after injuring knee ligaments. "The fans say you haven''t spent enough but what they don''t see is that Oubina was £2m," said Sullivan. "They say you just loaned him from Celta Vigo. Well, we did, but we paid £1m a year to loan him. He''s on £1m a year and we paid his agent £200,000 so that''s £2.2m gone.""

That''s the part of the interview that really struck me. Although I doubt that we''re trying to loan players from La Liga it does show how expensive the whole loan system has become.

He also says that a lot of the recent purchases of football clubs were overpriced and that these clubs will not do as well as anticipated and start to lose money. It will be interesting to see what happens then.

[gissing canary 2]

The guy was due to move for 10mill, before the deal fell through, and he wanted to move on, so its not surprising it cost a fair bit!

[Carlos Valderrama 0]

[quote user="Shack Attack"]

An interesting interview in The Guardian today with David Sullivan, the co-owner of Birmingham

http://football.guardian.co.uk/comment/story/0,,2177735,00.html

"Birmingham''s co-owner has just learned that Borja Oubina is unlikely to play again this term after injuring knee ligaments. "The fans say you haven''t spent enough but what they don''t see is that Oubina was £2m," said Sullivan. "They say you just loaned him from Celta Vigo. Well, we did, but we paid £1m a year to loan him. He''s on £1m a year and we paid his agent £200,000 so that''s £2.2m gone.""

That''s the part of the interview that really struck me. Although I doubt that we''re trying to loan players from La Liga it does show how expensive the whole loan system has become.

He also says that a lot of the recent purchases of football clubs were overpriced and that these clubs will not do as well as anticipated and start to lose money. It will be interesting to see what happens then.

[/quote]

A very vaild post.  Shows just what the club are up against when trying to strengthen the squad.  I wonder how much we have lost on Jimmy Smith.

Do we play the waiting game.  i.e wait til everyone else is skint then gamble.

[blahblahblah 2]

I''d be amazed if we get change from 750k for the cost of having Smith here, Luke Varney cost Charlton 140k in wages before he even kicked a ball this season.  At some point the bubble will have to burst.  But when ?

[Syteanric 1]

[quote user="blahblahblah"]

I''d be amazed if we get change from 750k for the cost of having Smith here, Luke Varney cost Charlton 140k in wages before he even kicked a ball this season.  At some point the bubble will have to burst.  But when ?

[/quote]

we need to look to the NFL and the salary cap.. its all above board and Legal and if run in the right way (the way the NFL do it.. not the way Rugby league do it) then Sanity will return to football... there will be no place for greed and the players who want vast sums of money EG Ashley Cole simply wont get it.

jas :)

[bobfleck 0]

Astonishing. I''m not a huge fan of the loan system anyway, for the very reason that it seems a very expensive way of ''papering over the cracks'' in the playing department, with no real solution at the end of a 3 / 6 month period...but seeing these figures bandied about for a LOAN deal is just astounding. I just hope to god that our precious academy gives us a nugget or two (one would be a start) in the not too distant future, because this seems to me to be just about the only way we are going to have any type of assets in the squad any time soon. On that note - who has seen the academy play lately? Please tell me we''ve got a precocious talent or two to hint upon a rosy future...?!

[Smeg 0]

[quote user="bobfleck"]

Astonishing. I''m not a huge fan of the loan system anyway, for the very reason that it seems a very expensive way of ''papering over the cracks'' in the playing department, with no real solution at the end of a 3 / 6 month period...but seeing these figures bandied about for a LOAN deal is just astounding. I just hope to god that our precious academy gives us a nugget or two (one would be a start) in the not too distant future, because this seems to me to be just about the only way we are going to have any type of assets in the squad any time soon. On that note - who has seen the academy play lately? Please tell me we''ve got a precocious talent or two to hint upon a rosy future...?!

[/quote]

 

its not really a LOAN system anymore, more of a HIRE system

basically we`ve hired jimmy smith from chelsea

[One Flew Over... 33]

[quote user="jas the barclay king"]

we need to look to the NFL and the salary cap.. its all above board and Legal and if run in the right way (the way the NFL do it.. not the way Rugby league do it) then Sanity will return to football... there will be no place for greed and the players who want vast sums of money EG Ashley Cole simply wont get it.

jas :)

[/quote]

A salary cap seems like a good idea..but then where does all the TV money go? I''d rather the money went to the players than faceless business men who sell the "rights" to watch matches. A salary cap would probably allow every Premier league club to let everyone in for free I guess. Where does the money go in the NFL? Shareholders?

Re the 2 million pound loan - it doesn''t sound that bad for getting £10 million pound player for 2 years (at his peak?).

If we are paying 750k for Smith for one year then using the same logic he would be worth £7.5 million (750k * 2 years * 5).

 

[mbncfc 1]

[quote user="Greg Sayer"][quote user="bobfleck"]

Astonishing. I''m not a huge fan of the loan system anyway, for the very reason that it seems a very expensive way of ''papering over the cracks'' in the playing department, with no real solution at the end of a 3 / 6 month period...but seeing these figures bandied about for a LOAN deal is just astounding. I just hope to god that our precious academy gives us a nugget or two (one would be a start) in the not too distant future, because this seems to me to be just about the only way we are going to have any type of assets in the squad any time soon. On that note - who has seen the academy play lately? Please tell me we''ve got a precocious talent or two to hint upon a rosy future...?!

[/quote]

 

its not really a LOAN system anymore, more of a HIRE system

basically we`ve hired jimmy smith from chelsea

[/quote]

Excellent work Greg.

Hire purchase is exactly what it is, and represents how skewed the whole league has become. The playing field is so uneven it''s more like the top of Mount Snowdon.

[Temp the Revelator 0]

His loan was only for a year - £1m loan fee, £1m wages, £200k agents fee = £2.2m for one year!  Astonishing!

[Mr.Carrow 394]

[quote user="Shack Attack"]

An interesting interview in The Guardian today with David Sullivan, the co-owner of Birmingham

http://football.guardian.co.uk/comment/story/0,,2177735,00.html

"Birmingham''s co-owner has just learned that Borja Oubina is unlikely to play again this term after injuring knee ligaments. "The fans say you haven''t spent enough but what they don''t see is that Oubina was £2m," said Sullivan. "They say you just loaned him from Celta Vigo. Well, we did, but we paid £1m a year to loan him. He''s on £1m a year and we paid his agent £200,000 so that''s £2.2m gone.""

That''s the part of the interview that really struck me. Although I doubt that we''re trying to loan players from La Liga it does show how expensive the whole loan system has become.

He also says that a lot of the recent purchases of football clubs were overpriced and that these clubs will not do as well as anticipated and start to lose money. It will be interesting to see what happens then.

[/quote]

Page 24 of the latest annual report under Staff Costs shows "Other employment costs (including loan players)" at £290,945 for the year. The previous year (when i think we had more loans) it was £747,287. So whilst these indicate that loaning players is not cheap, we are nowhere near the figures mentioned above.

[7rew 0]

[quote user="Mr.Carrow"]

Page 24 of the latest annual report under Staff Costs shows "Other employment costs (including loan players)" at £290,945 for the year. The previous year (when i think we had more loans) it was £747,287. So whilst these indicate that loaning players is not cheap, we are nowhere near the figures mentioned above.

[/quote]I doubt that would include loan fees.

[Shack Attack 0]

[quote user="Mr.Carrow"]

Page 24 of the latest annual report under Staff Costs shows "Other employment costs (including loan players)" at £290,945 for the year. The previous year (when i think we had more loans) it was £747,287. So whilst these indicate that loaning players is not cheap, we are nowhere near the figures mentioned above.

[/quote]

Cheers for that Mr Carrow, does that figure include the loan fee?

I think the point that Sullivan was trying to make is that the average fan sees the word loan and thinks that their club has spent no money when in reality it''s a very expensive process. I''m not for one minute suggesting that we are faced with similar amounts to try and get the loan players we want but it does show how expensive the whole thing has become.

Rather than being mutually beneficial to both parties (the player gets regular first team football which benefits his club in the long term and the club loaning him gets the use of a player they could not normally afford), the whole system seems skewed in favour of the richer clubs. I guess that shouldn''t really surprise any of us though!

[ricardo 8,034]

[quote user="7rew"][quote user="Mr.Carrow"]

Page 24 of the latest annual report under Staff Costs shows "Other employment costs (including loan players)" at £290,945 for the year. The previous year (when i think we had more loans) it was £747,287. So whilst these indicate that loaning players is not cheap, we are nowhere near the figures mentioned above.

[/quote]

I doubt that would include loan fees.
[/quote]

It states in black and white that it does.

[Mr.Carrow 394]

There is no mention of loan fees in the breakdown of costs on player trading on P.8 or anywhere else that i can see. I think the loan fees are included in the figures above as they don`t crop up anywhere else- unless anyone else has spotted them?