Quote Originally Posted by southsider View Post
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Thanks for your reply but it is not easy for people who do not come from a financial background to grasp. For example the FF and West stands were built at a cost of £6.5m. £2.5 m at a fixed rate of 7% over 20 years. With interest rates now at 0.5% has this not been regegotiated ?If not why not ? The further £4m was to be repaid in 10 years at a variable rate. What rate ? Do you see my point ?
From the last set of accounts, interest paid to the holding company was £5,033 on a loan of £250,000 - that's a rate of 2%. A further £1,500,000 was advanced interest free and the total amount paid to the holding company including rent was £29,033. No other rent was paid to anyone.

All other interest was paid to the bank. In round figures this was £132,000 on loans of around £7m, which is a rate of about 2%. That is a substantially lower rate than any other club I've looked at, presumably because the loans are covered by a personal guarantee rather than a security on land.

As Kaiser 1962 says the FF (and the South Stand) was built by the holding company before the whole ground was sold back to the club at a cash loss. No further loans were raised for East Mains, but a further £1.5m was taken on to help finance the £3.8m cost on the new East Stand.