Investment loan

[hibsforeurope]

Does anyone know the terms of the repayments we are now due in the £2m investment loan taken out recently? I presume this was to cover the loss of the Boyle transfer fee.

[Stuart93]

Does anyone know the terms of the repayments we are now due in the £2m investment loan taken out recently? I presume this was to cover the loss of the Boyle transfer fee.

Very much doubt it was to cover boyle fee

Potentially likely to be the upgrades in hospitality

[hibsforeurope]

Very much doubt it was to cover boyle fee

Potentially likely to be the upgrades in hospitality

Agreed but the Boyle money would have been ringfenced to cover the upgrades. The upgraded had almost finished before the loan was taken.

[Ronniekirk]

Agreed but the Boyle money would have been ringfenced to cover the upgrades. The upgraded had almost finished before the loan was taken.

There was defo an article I remember reading saying Ron had loaned the club a large amount to do the upgrading of hospitality suites Seem to recall itvwas defo over a million
But if your right and the two million is more recent it would be interesting to know what thsts about

[worcesterhibby]

2 million pound signing incoming !!!!!! :partyhibb

[jacomo]

Agreed but the Boyle money would have been ringfenced to cover the upgrades. The upgraded had almost finished before the loan was taken.


I’d imagine the Boyle fee is written off against the fee we got for Doig.

[Ringothedog]

Agreed but the Boyle money would have been ringfenced to cover the upgrades. The upgraded had almost finished before the loan was taken.

Surely the 8 figure sum we received by contracting out our hospitality and not the Boyle fee would pay for the upgrade

[cameronw-hfc]

Surely the 8 figure sum we received by contracting out our hospitality and not the Boyle fee would pay for the upgrade

It will, but we won't get that as a lump sum so the club will take out a loan of that amount and pay it off as we get our payments

[Onceinawhile]

Surely the 8 figure sum we received by contracting out our hospitality and not the Boyle fee would pay for the upgrade

We won't get that all up front.

[GloryGlory]

Surely the 8 figure sum we received by contracting out our hospitality and not the Boyle fee would pay for the upgrade

It's 8 figures over 9 years.

[hibsforeurope]

Its disappointing to have gone from having no external debt to having almost £5m in loans between the Gov loan and this new one.

[Bostonhibby]

We will be fine, and do what we always do as the edinburgh team that meets its debts when due.

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[Hibees1973]

Its disappointing to have gone from having no external debt to having almost £5m in loans between the Gov loan and this new one.

Too right. Mentioned before that when Ron's gone will he take the debt he's collated with him or will it be up to the next owner to pick up. Makes us less attractive for a takeover.

[flash]

Too right. Mentioned before that when Ron's gone will he take the debt he's collated with him or will it be up to the next owner to pick up. Makes us less attractive for a takeover.

Who cares what you think after you called him a tool.

[Hibees1973]

Who cares what you think after you called him a tool.

Think a few on here will care if we start racking up debts again. Maybe even you.

[brog]

Its disappointing to have gone from having no external debt to having almost £5m in loans between the Gov loan and this new one.


You're easily disappointed.

[Hibiza]

You're easily disappointed.
I'm disappointed too.

[Bostonhibby]

Think a few on here will care if we start racking up debts again. Maybe even you.Thing about debt is often about how good the borrowing rate is for the borrower, and crucially what we do with the capital it frees up for us.

It's when you get enforced debt, like debt for equity chucked at you by a dictatorial owner you need to start worrying. Look how that worked out down Gorgie way, for example.

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[SMAXXA]

Think a few on here will care if we start racking up debts again. Maybe even you.

you do know all these stadium and HTC upgrades don’t come free? Always going to be a need for loans etx as we are also increasing the player budget in parallel to all the other stuff (sure to the tune of 40% since RG arrived).

even with the government loan it was a no brainier to take (rather than us actually needing it) as I’m sure it was interest free so essentially free funding at no cost to repay just the capital, which doesn’t happen often when bringing in money to clubs.

[Big_Franck]

I'm disappointed too.

So am I. Especially as we know American owners have a history of saddling their new toys with large debt.

[Heisenberg]

Did Ron not pay off part/all of our existing debt when he took over from STF?

Can’t believe there’s still folk on here that don’t trust him and think he’s going to do us over.

[Since452]

Did Ron not pay off part/all of our existing debt when he took over from STF?

Can’t believe there’s still folk on here that don’t trust him and think he’s going to do us over.

Yup. Wrote off all our debt the con that he is.

[Bostonhibby]

Did Ron not pay off part/all of our existing debt when he took over from STF?

Can’t believe there’s still folk on here that don’t trust him and think he’s going to do us over.Yes, in the accounts and a matter of public record.

There may be sticks to beat him with, but this entirely legal and transparent transaction isn't one of them.

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[Onceinawhile]

So am I. Especially as we know American owners have a history of saddling their new toys with large debt.

That's usually done to buy the club though. Something that our Peruvian owner didn't do.

[Hibees1973]

Did Ron not pay off part/all of our existing debt when he took over from STF?

Can’t believe there’s still folk on here that don’t trust him and think he’s going to do us over.

It's not that I don't trust him. It's just his lack of judgement and competence in appointing the correct people to get a successful team on the park. Most Hibs fans I know have grave doubts based on what's gone on for the last year or so.

[Centre Hawf]

It's entirely normal for businesses to take out loans to upgrade themselves in ways that will make more revenue.

Someone in charge of numbers will have projected what our income could be over the course of the next 9 years with this catering deal and upgraded hospitality and no doubt came to the conclusion that it would be profitable for the business still even with the loan repayments. I very much doubt we're just racking up a credit card debt on shopping sprees without plans.

[bigwheel]

It's entirely normal for businesses to take out loans to upgrade themselves in ways that will make more revenue.

Someone in charge of numbers will have projected what our income could be over the course of the next 9 years with this catering deal and upgraded hospitality and no doubt came to the conclusion that it would be profitable for the business still even with the loan repayments. I very much doubt we're just racking up a credit card debt on shopping sprees without plans.

I hope they agreed a fixed interest rate before it’s gone and sky rocketed !

[brog]

I'm disappointed too.

Shock!

[007]

Too right. Mentioned before that when Ron's gone will he take the debt he's collated with him or will it be up to the next owner to pick up. Makes us less attractive for a takeover.

That question makes it sound like you don't know much about a sale of a business.

[flash]

I'm disappointed too.

Judging by your posts you were born disappointed.

[brog]

Its disappointing to have gone from having no external debt to having almost £5m in loans between the Gov loan and this new one.

The only reason we had no external debt was because Ron paid it off. If you look at our accounts in the 4 or 5 years up to July 2019, when Ron took over, our debt was roughly 5 to 7 milion each year. Despite the rigours of Covid, taking an interest free Govt loan (smart business) to help and making substantial improvements to the stadium we still have less debt than in the preceding years of the takeover. You must have been really disappointed in those days!

[Ringothedog]

The only reason we had no external debt was because Ron paid it off. If you look at our accounts in the 4 or 5 years up to July 2019, when Ron took over, our debt was roughly 5 to 7 milion each year. Despite the rigours of Covid, taking an interest free Govt loan (smart business) to help and making substantial improvements to the stadium we still have less debt than in the preceding years of the takeover. You must have been really disappointed in those days!
Stop giving facts to the doom mongers, it’s not allowed

[WhileTheChief..]

Car crash of a thread with the insults flying around.

[Glory Lurker]

Where is the news about this loan?

[HoboHarry]

Judging by your posts you were born disappointed.
His mum too probably.....

[danhibees1875]

Its disappointing to have gone from having no external debt to having almost £5m in loans between the Gov loan and this new one.

It wouldn't have been in the plan, but neither was Covid.

I'm sure they will have been taken out in good faith, for the right reasons.

[ancient hibee]

With inflation at over 10% and fixed loan interest rates at 4% taking out a business loan is the obvious thing to do.

[lucky]

The government loan was interest free over 10 or 20 years. The club would have been stupid not to take it. As for the new loan none of know what it’s for for or the terms of it but shareholders can ask at the next AGM.

[donno]

This is how an accountant in my family explained the Hibs purchase.
Ron and STF came up with an agreed value of the club. Let's call it X.
Hibs had recognisable debts. Let's call them Y.
The amount Ron payed for the club was Z.
Z=X-Y. With the agreement that Ron would pay off the debt Y, on completion of the deal.


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[Hibs4185]

We are guaranteed a 8 figure some over 10 years from elior.

Ron has lent us £2 million to pay for the upgrades over 9 years.

Over the 9-10 years we are at least £8 million up.

Normally if we were racking up debts I’d be the first to be worried but in this case it’s pretty sensible.