Club Chairman Loan, Restructure Finance, Cash Injection.

Edit - For anyone who searches for this stuff:

Bank Loan - New Stadium - When the club purchases a new stadium the debt is put onto the club as a 15 year repayment with fee/interest of around 20% on top.

Bank Loan - Chairman takeover - Often news items a club about a takeover will say that the new chairman will have to 'clear the debt'. In this case, it generally refers to the debt the club currently has in the 'balance' part of the financial window. If a chairman takes over, they will clear this debt 'balance' and may require the club to pay this back by way of a Bank Loan. This loan is a 25 year long loan, with about 25% fee/interest on top.

Club Chairman Loan - When a club gets into debt, the Chairman may choose to pay off the debt that the club has incurred but want the money back through a loan. The club incurs a 15 year long-term monthly repayment of the money back to him with a fee/interest of around 20% on top.

Cash Injection - When a club gets into debt, the Chairman may choose to 'inject money to help with the running costs of the club'. In this case, no loan is generated. It is essentially a gift. It is never required to be paid back.

In my dafuge challenge save with Nantwich I keep coming into cycles of debt, loans, finances and cash injections due to our stupid board building a 16,000 max capacity stadium.

I've basically been backloading the transfers over 4 years, to help secure better success. Now I didn't initially expect to end up in debt to refinance it, but the game has a 'lag', and in my case, it meant the board refinanced debt when we were going to clear the debt with prize money.

So I kept buying players for success (as well as selling what and when I could).

I understand this could potentially ruin the club, but it's the only way to succeed with such a small stadium.

Anyway.

I can't find too much concrete information on the differences in certain areas.

Right now I've got the following financial (I'm in 30.5.2033):

Bank Loan of £5.75m (£38.5k per month for another 2 years) 7.5.2035 - 15 Year New Stadium loan.

Bank Loan of £2.2m (£9.25k per month for another 20 years) 12.12.2053 - This loan is a 25 year period that started when my current Chairman took over the club.

Club Chairman Loan £24.5m (156k per month) 27.2.2045 - 12 years.

Club Chairman Loan £18.5m (118k per month) 23.4.2046 - 13 years.

Club Chairman Loan £16.75 (106k per month) 6.5.2047 - 14 years.

Have I got these right in my understanding:

Bank Loan - Either for a new stadium, or for paying off an old chairman. The 2.2 million seems to match with an investment/cash injection made just before the last chairman quit.

New Stadium Loan - At least for my stadium, the "fee/interest" on top of the actual loan appears to be 21% of the actual loan added on top.

Chairman Repayment Loan - For this repayment, which I believe came when the old chairman left, it's 26% of the actual loan added on top.

Club Chairman Loan - These all matched with a news item which said the club had successfully refinanced the debt or something to that effect. The debt is stretched over 15 years of monthly payments with a 'fee' of 15% (consistent for all 3 debts) of the total debt added on top.

£24,500,000 worth of debt.

£156,000 * (12 months * 15 years = 180 months) = £28,080,000

£28,080,000 - £24,500,000 = £3,580,000 Fee.

15% of £24,500,000 is £3,675,000 to confirm the 15% fee.

Cash Injection - Now my question, everything else is pretty straightforward.

The news item for a Cash Injection says:

Chairman provides cash injection

Chairman [name] has loaned the club [Amount] in order to help with the club's running costs.

In my case, he gave me £33,500,000.

It shows up in the investment part of the financial screen income.

Will I have to pay back this so-called "Loan"?

Will I pay it back after/when the chairman leaves?

Will he claw it back in dividends when the club is profitable?

Or is this more like a gift.. something I never have to worry about?

Bank Loan of £5.75m (£38.5k per month for another 2 years) 7.5.2035 - 15 Year New Stadium loan.

Bank Loan of £2.2m (£9.25k per month for another 20 years) 12.12.2053 - This loan is a 25 year period that started when my current Chairman took over the club.

Bank Loan - Either for a new stadium, or for paying off an old chairman. The 2.2 million seems to match with an investment/cash injection made just before the last chairman quit.

New Stadium Loan - At least for my stadium, the "fee/interest" on top of the actual loan appears to be 21% of the actual loan added on top.

Chairman Repayment Loan - For this repayment, which I believe came when the old chairman left, it's 26% of the actual loan added on top.

Your % seem to be right, I don't know if its fixed or differs from loan to loan depending on club etc.

All you really need to know is the repayments and the amount due per month/year/in total so you can cover them.

Club Chairman Loan £24.5m (156k per month) 27.2.2045 - 12 years.

Club Chairman Loan £18.5m (118k per month) 23.4.2046 - 13 years.

Club Chairman Loan £16.75 (106k per month) 6.5.2047 - 14 years.

Have I got these right in my understanding:

Club Chairman Loan - These all matched with a news item which said the club had successfully refinanced the debt or something to that effect. The debt is stretched over 15 years of monthly payments with a 'fee' of 15% (consistent for all 3 debts) of the total debt added on top.

£24,500,000 worth of debt.

£156,000 * (12 months * 15 years = 180 months) = £28,080,000

£28,080,000 - £24,500,000 = £3,580,000 Fee.

15% of £24,500,000 is £3,675,000 to confirm the 15% fee.

Again your figures look fine to me, this is obviously money the chairman has loaned to the club with a fixed repayment schedule.

Cash Injection - Now my question, everything else is pretty straightforward.

The news item for a Cash Injection says:

Chairman provides cash injection

Chairman [name] has loaned the club [Amount] in order to help with the club's running costs.

In my case, he gave me £33,500,000.

It shows up in the investment part of the financial screen income.

Will I have to pay back this so-called "Loan"?

Will I pay it back after/when the chairman leaves?

Will he claw it back in dividends when the club is profitable?

Or is this more like a gift.. something I never have to worry about?

If it isn't in your loan section then it isn't a loan and you don't have to make repayments.

If your Chairman leaves chances are the incoming chairman may have to take out a bank loan to cover any debt shown in your main balance (Like your £2.2m bank loan above)

When your club is profitable he may take dividends out but this is true irrelevant of having loans or not so in truth its more like a gift.

Overall you seem to have quite a rich chairman £60m of loans and then a £33.5m gift, use it wisely

Again your figures look fine to me, this is obviously money the chairman has loaned to the club with a fixed repayment schedule.

Interesting. I'd just assumed we'd taken out a long-term bank loan or something. I suppose it could be the chairman. Not sure. Doesn't matter in the end, as it is what it is (ie, a long term loan).

So that 2.2m bank loan would've been because we had 2.2 million in debt when he bought the club? Ah, I thought it was something like the old chairman needing to be paid back.

Huw Jenkins of Swansea "injected" 12 million that didn't need me to pay it back.

Then he lent the club 30 million to help with running costs. the term was "lend" but absolutely no mention of me needing to pay it off either.

then there was a 27 million bank loan which i do need to pay off.

so he put 42 million into the club for free.

What's strange is that it was his own doing. Our balance was around about 1 million upon securing promotion and he told me "transfer budget of 30 million, stay up" and I was like "eh...are you sure?". Erring on the side of caution, I spent half of it, then the running costs got out of end, then he just bailed out the club anyway. It seems if the Chairmans hidden attributes mean he's mega-rich he'll just let you spend yourself into debt then pay it off for you.

edit:

rather than - I should say - giving the money to start off with

I got another injection this season. We were 6 million in the red. The board also cancelled a planned youth recruitment upgrade.

A week later we got Champions League TV money. That put us up to about 15 million.

Then the chairman injected £20 million on his own. Thanks boss

I'm guessing there is some kind of set moment the chairman decides to inject or not, but that didn't take into account the CL revenue.