Next Crisis about to hit Scottish Football

[SingaporeHibs]

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Goldman Sachs have forecasted a -25% GDP in USA for quarter 2 2020. This economic meltdown will be far reaching and will certainly impact us all personally, including our beloved Hibs as well as all others clubs. American owners of clubs will have a bigger problem than non American.

Come on Global Hibby, why use a GS forecast to put worry in people that Hibs having an American owner is a bigger problem than an owner from anywhere else?
This is a global crisis that will clearly see a global slowdown. Countries globally are closing down in an effort to get on top of the virus. I don’t see why the slowdown will be worse in the US than anywhere else. Provided the US doesn’t stuff up their efforts in comparison to anywhere else but even then in a global environment the difference will be marginal.
A bit like after GFC, free money will only help the rich get richer while everyone else struggles through. It’s not going to be a great time for people generally but my last concern right now is Hibs having a US based owner.

[blackpoolhibs]

Who'd have thought people would struggle with less money coming in?

[chrisski33]

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I'm finding all this hard to deal with.

On the one hand, a football club is way down my list of priorities - my main worries are finances and essentials for myself, my family, friends and community. I've got a lot more to worry about than some football players.

On the other hand, I'm already beginning to realise how much benefit sport and entertainment is to all our lives - we need the escape from the hum drum that it provides, together with the social element of meeting people at the game, at the cinema, for a drink or a meal.

And with a football club, like all businesses, yes, the ones at the top will probably survive it very nicely - but there are a team of support staff and ordinary people who will currently be feeling like they have no control of their futures.

I feel that when this virus is over some folk will worry about other stuff other than football clubs tbh. There will be another virus like this again. Folk will be holding back in their finances.

[CentreLine]

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I feel that when this virus is over some folk will worry about other stuff other than football clubs tbh. There will be another virus like this again. Folk will be holding back in their finances.

Think you are absolutely right in the second part but I actually think people will be very glad if the distraction offered by football. I think people will return in good numbers. They will find other area to make economies.

[Arch Stanton]

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The wages in Scotland are pretty much proportional to gate receipts. In England that's another story.

Presumably SKY and BT will continue funding EPL since they haven't been refunding customers.

[blackpoolhibs]

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I feel that when this virus is over some folk will worry about other stuff other than football clubs tbh. There will be another virus like this again. Folk will be holding back in their finances.

I'd imagine certain schemes that have been implemented over the years like our HSL and the gimps one will see a huge downturn in funds soon.

Football is not the most important thing in our lives anymore, it never really was.

[Global Hibby]

I agree family, friends and loved ones more important than Hibs. However we all do have a passion for Hibs and care deeply. We might have different lenses we look through and we will have different opinions. Decisions are neither right or wrong based on ones analysis...it’s just an opinion. I have an opinion on HSL at the end of this post, which I will try to share how I arrived at that opinion.

Someone asked me why the concern over American Owners more so than others. I have spoken with Ron and I think he is really good guy with a plan that could work for him to make money and for Hibs to prosper as a result. Ron is a very successful business man who has gone through at least two serious financial crashes and came through them. Hibs could have done a lost worse than Ron for sure !

This Tsunami financially on its way to us, is going to be much greater and more impactful than those two before. The crash was on its way before Covid 19.

it’s very difficult to get an handle on businesses and people with structures out of Delaware and I am personally one of those. One doesn’t go to Delaware to hide those things by the way either so don’t be mislead by that statement.

Many American owners of football clubs have a corporate structure behind them for that investment and in many instances it’s joined in with other investments. It’s difficult to find out those structures and why worry some might say. When security of assets is in place it’s not just as simple as looking at say Hibs and saying there is charge from another company but don’t worry we have not borrowed anything. Hibs is an asset owned by that company or individual and could be used as security depending on a number of areas. To be specific the shares that anyone has in any company including Hibs has a value and can be borrowed against. I am not saying Ron is doing this either to be clear and this is not in any way a criticism of Ron and his team and he is vastly experienced.

This Tsunami will have a knock on effect to us all and will affect Hibs and Scottish Football. My last opinion is that HSL should stop giving funds to Hibs in the manner it does today. It should switch to lending Hibs the money as a secured creditor against the assets just in case there is a financial issue in the future. The loan can be dealt with in a number of different ways in the future. For the record I am a member of HSL and supported the funds given to our beloved football club. By lending the money it provides a safety factor for our football club and I am old enough to recall when STF saved us.

This is just my opinion and neither right or wrong. Hope it adds to a good debate whilst we await the return of football.