Hibs' "Massive Mortgage"

[Hibbyradge]

For some reason JKB Meltdown tweets have started appearing on my Facebook wall, not that it bothers me as some are quite funny.

I saw one this morning which suggests that the fee we get for Jason Cummings will go towards our "Massive Mortgage".

Now I know we are in rude health financially and the substance of that tweet is a million miles from reality, but what is our current position.

In my mind we have a loan from Tom Farmer and are repaying that at a low interest rate with regular and affordable installments.

Is that accurate?

[blackpoolhibs]

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For some reason JKB Meltdown tweets have started appearing on my Facebook wall, not that it bothers me as some are quite funny.

I saw one this morning which suggests that the fee we get for Jason Cummings will go towards our "Massive Mortgage".

Now I know we are in rude health financially and the substance of that tweet is a million miles from reality, but what is our current position.

In my mind we have a loan from Tom Farmer and are repaying that at a low interest rate with regular and affordable installments.

Is that accurate?

£500k a year interest free as far as i can remember, with i think £4m left to pay?

[Onceinawhile]

No.

It's not low interest. It's interest free.

[Big_Franck]

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For some reason JKB Meltdown tweets have started appearing on my Facebook wall, not that it bothers me as some are quite funny.

I saw one this morning which suggests that the fee we get for Jason Cummings will go towards our "Massive Mortgage".

Now I know we are in rude health financially and the substance of that tweet is a million miles from reality, but what is our current position.

In my mind we have a loan from Tom Farmer and are repaying that at a low interest rate with regular and affordable installments.

Is that accurate?

Pretty sure we repay 500k a year. More than manageable with the kind of turnover we'll have next year which I'd expect to be 8-9m.

[Pretty Boy]

£500k a year to STF for 10 years was the deal announced at the AGM 3 years ago as part of the agreement with the bank. We had no external long term debt at that point, no overdraft facility, outstanding loans etc.

I don't believe anything has been comunicated to shareholders since that time to suggest the situation has changed.

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[Hibbyradge]

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No.

It's not low interest. It's interest free.

[SirDavidsNapper]

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No.

It's not low interest. It's interest free.

Shhhh don't say that. You will have the kickbackers crying into their cornflakes.

[Pretty Boy]

I think what you have to remember is that for some time now Hearts fans have tried to equate Hibs and the bank coming to mutually beneficial agreement with their systematic financial mismanagement over a number of years.

Nobody knows the full terms of the deal Hibs brokered with the bank. Commericially it makes no sense for either party, especially the bank, to disclose that information beyond their legal obligations to do so. The figures involved though suggest that STF stumped up a lump sum up front with an agreement Hibs would pay him back interest free over an extended period. He also made a significant number of new shares available to dilute his own shareholdong whilst allowing new money to be invested directly into the club rather than to himself.

The bank, many of who have wished to extract themselves from Scottish football for some time, are happy. Hibs are happy and we continue to meet our short term financial obligations as I would expect. I wonder if anyone other than Hearts came out of their murky dealings happy? Totally incomparable situations however they try to dress it up.

[Jones28]

I love it when jambos type something "insightful" about our finances and then legitimise their claim by putting "tick tock" at the end.

This is how a well run, obligation meeting football club with people who know what they're doing operates.

[tamig]

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For some reason JKB Meltdown tweets have started appearing on my Facebook wall, not that it bothers me as some are quite funny.

I saw one this morning which suggests that the fee we get for Jason Cummings will go towards our "Massive Mortgage".

Now I know we are in rude health financially and the substance of that tweet is a million miles from reality, but what is our current position.

In my mind we have a loan from Tom Farmer and are repaying that at a low interest rate with regular and affordable installments.

Is that accurate?

There's a whole thread about our financial position on the front page.

[WhileTheChief..]

Apparently Lloyds bank are entitled to 40% of any fees we receive from selling players.

Must be true, a fud on Kickback said so!

[tamig]

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Apparently Lloyds bank are entitled to 40% of any fees we receive from selling players.

Must be true, a fud on Kickback said so!

I did shake my head at that one. Fantasy island that place.

[SirDavidsNapper]

End of the day Hibs are reaping the rewards of years of sound financial management. Hearts could only dream of the position we're in off the park.

[ian cruise]

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End of the day Hibs are reaping the rewards of years of sound financial management. Hearts could only dream of the position we're in BOTH ON AND OFF the park.

Fixed that for you

[SirDavidsNapper]

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Fixed that for you

👍

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[J-C]

From what I remember at the time STF paid off the bank loan/mortgage, so in essence we pay back STF the £5M at £500K per year interest free over 10 years, STF is doing what any good club owner should do, look after his club.

[CallumLaidlaw]

Their bitterness is hilarious. That strange real Romanov chap on twitter (hard to believe that's a grown man) is convincing himself that £560k of Jasons transfer fee will go straight to Farmer to pay for the loan. Aye of course Sorry pal, but we don't need to live from deal to deal to keep things ticking over. Just like we don't need a huge flippin' cow to pay for our stand (and I'm talking about the porcelain one, not Budge).

They are all just raging that a club that apparently died 5 years ago is on an upward spiral, and even more hurt that their failings in recent Scottish Cup ties have helped towards that.

[Geo_1875]

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From what I remember at the time STF paid off the bank loan/mortgage, so in essence we pay back STF the £5M at £500K per year interest free over 10 years, STF is doing what any good club owner should do, look after his club.

You mean there are club owners who don't supply interest free funding to their club?

[jacomo]

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I love it when jambos type something "insightful" about our finances and then legitimise their claim by putting "tick tock" at the end.

This is how a well run, obligation meeting football club with people who know what they're doing operates.

They've copied TICK TOCK now too?

Here's a tip Jambos: it doesn't really work unless the club is tipping into financial insolvency.

[O'Rourke3]

There's a poster here who had a jambo pal post something on a fb comment about our financial cheating. OK, I'll play I said. Can you explain why negotiating conditions favourable to both sides of the deal is the same as forcing one party to accept pennies as you are about to go insolvent? Still waiting.

[Bostonhibby]

All I can really add, is that what Mrs Budge is charging them in interest for the privilege of using their money to improve her stadium asset plus whatever she wants to do next, is far in excess of any commercial mortgage rate.

Still, its the yams and numbers so you have to make allowances.

[HIBERNIAN-0762]

They always have to try and find a way of demeaning us due to the outrageous thieving that went on there and will pick up on any silly little item to try and get back at us, small minds have small pleasures.

The thread on JC is hilarious and well worth a look if you are in need of a little light relief.

[Bostonhibby]

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There's a whole thread about our financial position on the front page.

It's a strange one isn't it?

I know they are not familiar with seeing published certified accounts but why don't they just post what we publish every year. At least they'll get to see what should have been done over all those years before they put themselves into admin to avoid paying all those poor creditors on their own list of shame.

No creditors bumped, charities denied their money, public bodies not paid for services or tax man deceived out of millions. You don't even have to owe the debt to yourselves if you just pay the people who are owed.

Poppy thieves.

[Caversham Green]

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There's a poster here who had a jambo pal post something on a fb comment about our financial cheating. OK, I'll play I said. Can you explain why negotiating conditions favourable to both sides of the deal is the same as forcing one party to accept pennies as you are about to go insolvent? Still waiting.

To be fair, they didn't give the bank pennies, they gave the bank nothing. On the other hand, we gave the bank the amount they asked us for.

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Apparently Lloyds bank are entitled to 40% of any fees we receive from selling players.

Must be true, a fud on Kickback said so!

Just in case someone might believe this, it would have to be disclosed in a note to the accounts. Dundee United and Motherwell have both included such notes in the past, but there is no such notes in Hibs' accounts.

[Frazerbob]

It's ok, we owe it to ourselves.

[Captain Trips]

Hearts may have had a turn at bragging rights in past with results but at the moment can their fans really be discussing our finances? when they are having face painting days, tombolas and large plastic cows to put money in so they can fund things.

Maybe when we are looking to buy a forward and in order to do that we need to have a bake sale they can just get back in their box and can come out for their pumping once league starts.

[Tobias Funke]

This thread can easily be summarised by the following statement;

"The majority of Hearts fans who post on Kickback are thick as mince."

[J-C]

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You mean there are club owners who don't supply interest free funding to their club?

Yep,Queen Budge

[Pretty Boy]

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This thread can easily be summarised by the following statement;

"The majority of Hearts fans are thick as mince."

Sorted.

[Sir David Gray]

I'll not believe this until we see bake sales organised out the back of the West Stand.