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Wanderers Ways. Neil Thompson 1961-2021

The Name’s Bond


globaldiver

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Decent interest rate but 2 issues as a supporter, how will the interest be paid each year - around £297k and more importantly how us the £3.5m capital going to be paid back in 5 years?

 

The interst looks affordable given a commercial loan for the club could be much higher. The capital might only be repaid either by taking out another loan or selling the debt to new (richer) owners.

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15 minutes ago, Mounts Kipper said:

what happens if club lose money and you are a shareholder, are you liable for part of the debt?  Also i take it the 8.5% return is after 5 years invested so 1.7% interest per year. 

Says 8.5% pa. Nobody is putting in £3.5m for 1.7% pa. You can get 4.3% fixed for 5yrs at a Building Society which is protected by the Financial Conduct Authority.

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14 minutes ago, Traf said:

So, invest £1000 and get £425 interest, plus £100 if we go up?
A 52.5% return over 5yrs? Club will be fucked in 5yrs time.

Suggests FV will be looking to sell in that window.

All depends on how they work the interest out but you could end up with over £1600 if it’s compound interest 

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40 minutes ago, Mounts Kipper said:

what happens if club lose money and you are a shareholder, are you liable for part of the debt?  Also i take it the 8.5% return is after 5 years invested so 1.7% interest per year. 

You're not a shareholder, you are a bond holder. 

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