£100m Arsenal deal is cheap at the price

Discussion in 'Arsenal Talk' started by Feis-al, Oct 6, 2004.

  1. Exiled In Newcastle

    Exiled In Newcastle New Member

    Very difficult to say as it involves many property sales.

    Best case scenario would see us totally debt free before the end of the decade, but from the way the board have weighted the payments from Emirates I think they're playing safety first and imagining the debt finalised by 2012.
  2. leongsh

    leongsh New Member Elite

    I recall the Arsenal board saying that they would be refinancing the loans when Arsenal moves to the Emirate Stadium at Ashburton Grove. This is to obtain more favourable interest rates and possibily looking towards extending the tenure of the loans. So I don't think Arsenal would be totally debt-free even by 2012. Besides, if the cost of funds (i.e. interest rates) available to Arsenal is sufficiently low, Arsenal would probably hold a small and manageable level of debt to take advantage of those rates.
  3. Dr. Alban

    Dr. Alban New Member

    A small amount of debt is always preferable so that you can have the possibility of using it to get tax deductions.

    The bank loans were to be paid back in 14 years. I wouldn't be surprised if the refinancing would mean that the loans will be paid back over 25-30 years.
  4. fuzz

    fuzz New Member

    "In the new stadium we can invest in the team. We have a very long term deal and we have security over a very important revenue source. It is crucial in that respect."

    This was in an article on the arsenal website and pretty much explains why we have taken such a long deal. Like i've said before it's security that the club are most interested in which i am happy to hear about. I'd hate to think we were gambling with the clubs future as the saying goes "it's better to be safe than sorry".

    and to all the doom mongers plotting our financial demise, well i think this highlights atleast in some small way that we aren't going anywhere, but up!

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