Martin_T Posted January 21, 2009 Share Posted January 21, 2009 Is this the reason the transfer market in general is almost completely dead? I don't know for certain how clubs finance transfer fees normally, but I would imagine it is partly through extending overdrafts/ taking loans from financial institutions then paying these back when season ticket and TV revenue is received at the end of the season. For most clubs, match day revenue will barely cover wages, running costs etc. Now that the option to extend credit and take loans has dried up, we are left with a situation where only clubs with large cash reserves and billionaire owners can finance any deal at the current time. The only options open to most clubs at the current time would seem to be: Loan with an option to buy Free Transfers Buy now, pay later How many transfer fees have been paid by any Scottish club this transfer window? The only one that I can think of off the top of my head is Celtic paying ?200,000 for Niall McGinn. Link to comment Share on other sites More sharing options...
Commander Harris Posted January 21, 2009 Share Posted January 21, 2009 you're quite possibly correct. obviously we can't make a full judgement on this transfer window until it closes, as I expect that most business will be conducted in the last few days, but it doesn't look like it's going to be a busy one and that may well be down to the lack of credit. Link to comment Share on other sites More sharing options...
Guest JamboRobbo Posted January 21, 2009 Share Posted January 21, 2009 I agree teams will have less money than normal to spend. I have been thinking it'll be a bit of a buyers market this window for those teams that do have a bit of cash they are able to invest. Link to comment Share on other sites More sharing options...
super_vlad Posted January 21, 2009 Share Posted January 21, 2009 Is this the reason the transfer market in general is almost completely dead? I don't know for certain how clubs finance transfer fees normally, but I would imagine it is partly through extending overdrafts/ taking loans from financial institutions then paying these back when season ticket and TV revenue is received at the end of the season. For most clubs, match day revenue will barely cover wages, running costs etc. Now that the option to extend credit and take loans has dried up, we are left with a situation where only clubs with large cash reserves and billionaire owners can finance any deal at the current time. The only options open to most clubs at the current time would seem to be: Loan with an option to buy Free Transfers Buy now, pay later How many transfer fees have been paid by any Scottish club this transfer window? The only one that I can think of off the top of my head is Celtic paying ?200,000 for Niall McGinn. Spot on, not only in Scotland but even south of the broder there is really no real action going on because of the lack of money. Football s not imume to the global crisis but because sevral clubs have some rich sugar daddies they are the ones who will spend the cash. Link to comment Share on other sites More sharing options...
Victorian Posted January 21, 2009 Share Posted January 21, 2009 I agree teams will have less money than normal to spend. I have been thinking it'll be a bit of a buyers market this window for those teams that do have a bit of cash they are able to invest. quite true. at least we have the advantage of having a feeder team to fall back on. we'll always be ok for a supply of new players. Link to comment Share on other sites More sharing options...
PresidentRomanov Posted January 21, 2009 Share Posted January 21, 2009 I'm just grateful we have Mr Romanovs backing, people would do well to remember, without him, we'd more than likely be finished Link to comment Share on other sites More sharing options...
Martin_T Posted January 21, 2009 Author Share Posted January 21, 2009 Spot on, not only in Scotland but even south of the broder there is really no real action going on because of the lack of money. Football s not imume to the global crisis but because sevral clubs have some rich sugar daddies they are the ones who will spend the cash. It's probably a bit early to say so, but I stated before the transfer window even started that I could not see where the buyers for our players were coming from, certainly not at 'acceptable' prices. It remains to be seen however, whether the club was relying on the transfer income as a means of ensuring short term liquidity. Link to comment Share on other sites More sharing options...
super_vlad Posted January 21, 2009 Share Posted January 21, 2009 It's probably a bit early to say so, but I stated before the transfer window even started that I could not see where the buyers for our players were coming from, certainly not at 'acceptable' prices. It remains to be seen however, whether the club was relying on the transfer income as a means of ensuring short term liquidity. Even tho the large debt is at Ukio the overdraft that we use in the short term is with HBOS and this is what concerns me the most. I think we need to sell to service the overdraft also because of the whole of HBOS now being taken over we are in danager were the local desicions taken out of Scotland and made at national level which could be against us. Link to comment Share on other sites More sharing options...
Guest jambomickey Posted January 21, 2009 Share Posted January 21, 2009 I'm just grateful we have Mr Romanovs backing, people would do well to remember, without him, we'd more than likely be finished without him we wouldn't have had our name dragged through the gutter so many times:mad: Link to comment Share on other sites More sharing options...
Charlie-Brown Posted January 21, 2009 Share Posted January 21, 2009 Unless clubs are running at a profit and/or have a positive cash flow ie they've taken in more money than they have to pay out in the short term then i would wager 80% of football clubs are reliant on bank support & credit facilities which are obviously much harder to get the kind of borrowing facilities that were available before....most clubs will be looking at some kind of buy now pay later / staggered payments or loan-to-buy deals etc and try to minimise the amount of cash to be paid up-front..... Link to comment Share on other sites More sharing options...
PresidentRomanov Posted January 21, 2009 Share Posted January 21, 2009 without him we wouldn't have had our name dragged through the gutter so many times:mad: No doubt about it, our name would be one of a proud team that used to play at Tynecastle, who no one has any interest in anymore - assuming we were still surviving rattling around Murrayfield. Link to comment Share on other sites More sharing options...
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