theHotHead wrote:Wait, so we have been funding purchases from loans?!! Is this common knowledge???
What the f**k?!!!! So these f***ers are putting us into debt
Yes, that's the scenario.
The Kroenkes restructured the stadium debt to allow more cash flow for us i.e., they annulled outstanding loans of the Emirates Stadium against the banks, but structured it as debt against KSE. So, instead of paying interest to the financial institution, we're obliged to pay KSE annual interests. They could forgo this provision if they so wished.
This enabled us to apply for further loans to fund last seasons's transfers.
At this stage, we're under debt to financial institutions and KSE. Before the full take-over (KSE), we were only liable for the stadium debt.
That's why I mentioned about the Super League. Reportedly, Arsenal, ManU, and Liverpool were drivers of the Super League in England. Spurs, obviously, would piggy-back as it helps them the most. City and Chelsea were the first to pull out.
Don't forget that American billionaires now control Arsenal, ManU, and Liverpool. Soon, Chelsea too.
Chelsea owe around £1.2b in debt to Roman Abramovich. But he's provided concessions. And, apart from Chelsea's actual net worth, Abramovich has pledged those loans on charity. Chelsea have another issue with Stamford Bridge. The land where Stamford Bridge lies isn't owned by Chelsea outright. It's leased. So, the new Chelsea owners, inherit the terms and conditions as "custodians" of the estate.
If we hadn't applied for loans, we wouldn't have been in a position to spend more than £70m last summer. We are in a position to spend another £150m this summer without breaching the rules, but it's yet to be seen how that's structured.
KSE could ease the situation by "absolving" loans against them. They won't. No business would, frankly speaking. But if push came to shove, they'd have to, or else they'd have to sell the club to someone who's willing to inherit all the loans on top of their £2.4b valuation of Arsenal.
We're not self-sufficient anymore. We also can't ignore the impact of Covid in all of this. It's affected every club out there, even Real Madrid and Barcelona.