jeep is not anywhere on our kits for next three league games!.maybe EXPO wanna cough up more money.
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The Financial Situation (27 Viewers)
- Thread starter ReBeL
- Start date
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Guys, I saw a lot of article about that 50M loan was provided by Exor what we can spend untill end of this year.
http://www.calcioefinanza.it/2015/02/27/prestito-exor-juventus-50-milioni-di-euro/?lang=en
What is the truth behind that?
http://www.calcioefinanza.it/2015/02/27/prestito-exor-juventus-50-milioni-di-euro/?lang=en
What is the truth behind that?
afaik (didn't read much into it) those money are needed to have cash avaible for some laws. Since every summer we're losing money Exor/FCA need to refill a certain ammount .
Anyway i'll look into it.
There are 2 options
1) those money are needed to refill our cash as every summer we're losing money. Between -15 and -20m
2) we were short on cash to pay installments
Anyway guys don't worry it's not like anything will happen even if Exor lend us cash. They did it in 2011 summer when they gave us a budget of 120m to restart. remember?
Anyway i'll look into it.
There are 2 options
1) those money are needed to refill our cash as every summer we're losing money. Between -15 and -20m
2) we were short on cash to pay installments
Anyway guys don't worry it's not like anything will happen even if Exor lend us cash. They did it in 2011 summer when they gave us a budget of 120m to restart. remember?
found this:
it's taken from here http://www.tifosobilanciato.it/2015...-juventus-e-la-stagionalita-delle-semestrali/
It's the best economical website about italian football. Tough it's only in italian so you gotta use google translator or whatever you use.
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it's not cause they didn't gift money to Juventus.... but they lent with a market value of 2% on the sum.
And reading more into it Juventus didn't take and spent 50m.
Exor and Juventus agreed to make (making it simple) a "Bank account" in which Exor put "50m" usable by Juventus from 1/2/2015 up till 31/12/2015.
So it's like pocket money avaible to use in case of need.
it's taken from here http://www.tifosobilanciato.it/2015...-juventus-e-la-stagionalita-delle-semestrali/
It's the best economical website about italian football. Tough it's only in italian so you gotta use google translator or whatever you use.
- - - Updated - - -
it's not cause they didn't gift money to Juventus.... but they lent with a market value of 2% on the sum.
And reading more into it Juventus didn't take and spent 50m.
Exor and Juventus agreed to make (making it simple) a "Bank account" in which Exor put "50m" usable by Juventus from 1/2/2015 up till 31/12/2015.
So it's like pocket money avaible to use in case of need.
Extract from the HY report regarding that line of credit.
A line of credit is more like an option to borrow, the option will expire on 31 dec 2015 and if any balance is owed at that date it would have to be paid back.
So this is possibly to solve some liquidity (cash) problems at Juve and to provide an alternative source of finance to banks and factoring companies. Up until recently Juve had another source of finance: football clubs (by paying in installments). This is not included in the financial debt part of F/S disclosure and FFP doesn't allow that source of financing. Hence even though net spend in last two transfer markets were nearly zero, Juve's financial debt(banks and factoring co) went up because Juve were paying off past installments.
Also since the terms of this line of credit are under market conditions with interest of Euribor+2%, this is not deemed as a related party transaction, so no issue with FFP.
A line of credit is more like an option to borrow, the option will expire on 31 dec 2015 and if any balance is owed at that date it would have to be paid back.
So this is possibly to solve some liquidity (cash) problems at Juve and to provide an alternative source of finance to banks and factoring companies. Up until recently Juve had another source of finance: football clubs (by paying in installments). This is not included in the financial debt part of F/S disclosure and FFP doesn't allow that source of financing. Hence even though net spend in last two transfer markets were nearly zero, Juve's financial debt(banks and factoring co) went up because Juve were paying off past installments.
Also since the terms of this line of credit are under market conditions with interest of Euribor+2%, this is not deemed as a related party transaction, so no issue with FFP.
A cash flow deficit is different than a financial loss. My understanding is as long as the club isn't losing under a certain threshold on an accounting basis, getting a line of credit to cover cash shortfalls is not a problem.
Also getting a loan is different than investing. There is a limit on equity contributions each year. Roma is in hot water b/c if you look at their accounts, they are losing money every year and funding the following year by issuing equity.
Ok:
Company X is breakeven on an accounting basis, but has a cash shortfall due to cash requirements from payables. It covers the remaining cash by opening up a line of credit to bridge the gap.
Not ok:
Company Y has an accounting loss each year. It wants to buy Yaya Toure so its owner contributes $80 million through the issuance of shares in order to pay his transfer fee and his salary.
Also getting a loan is different than investing. There is a limit on equity contributions each year. Roma is in hot water b/c if you look at their accounts, they are losing money every year and funding the following year by issuing equity.
Ok:
Company X is breakeven on an accounting basis, but has a cash shortfall due to cash requirements from payables. It covers the remaining cash by opening up a line of credit to bridge the gap.
Not ok:
Company Y has an accounting loss each year. It wants to buy Yaya Toure so its owner contributes $80 million through the issuance of shares in order to pay his transfer fee and his salary.
