Doug3101
Member
- Joined
- Feb 26, 2015
- Messages
- 249
The money now gifted to the club from the trust would be classed as income for FFP purposes if it was still a loan.About 800k is a loan. A while back it was changed to a donation. We were told it was so we could use more money for playing budget to fit in with the maximum 55% of turnover financial fair play rules, but I can't say I ever believed that.
The £800K loan has not been called in as it is there as a deterrent to any 'predators' who would try and take over the club and have a degree of ill will about them. Having to service a debt of that amount should see off people of that nature.
Personally I don't see the point of the club paying it back atm, the trust is there to help the club stand on it's own two feet and all the money the trust gets ultimately goes to help the club. The trust would be in a situation of calling in a loan and then being duty bound to give it back thus leaving the club cash rich and open to a takeover.