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Jacob - we're gradually sorting things out

Jacob - we're gradually sorting things out

Talk of a £15m loan coming into the club has been on the agenda for some time now - this loan coming from Hong Kong based businessman Balram Chainrai.

This talk has of course led to 'rumour' that he was set to become the third owner of the club in just about as many months but this has constantly been played down with Ali Al Faraj's right-hand man Mark Jacob often at the forefront of this.

Once again, talking to sky sports, Jacob has said this is nothing more than a loan: 'it's a facility provided by a third party, that's all.

'Like you or I would go to the bank and borrow money on our property or whatever.'

As sky sports pointed out quite what this loan has been offset against - with talk of future TV revenue money, among other things, being used to secure this - is not known. We just have to hope that this is not going to lead to more troubles down the line.

Sorting out the situation at Pompey is also something that Jacob says is happening, with people working hard to make this happen: 'we're gradually sorting things out.

'We're working around the clock to do so. But it's not going to happen overnight - we've been in charge (only) four weeks.'

Again, all we can do is hope that this is all going on and we will soon be in a 'decent' and 'stable(ish)' position.

What I do ask is?

Why are we still seeking loans from people though to keep us afloat, are these people not meant to have the means the likes of which 'we would not believe!'

I guess we need to have some trust, which I know is hard given what we have been witnessing for so long! For their sakes, as well as ours, do not make this trust misguided though, although by my own admission I am finding it increasingly hard to believe too much of what is said to us from those senior at the club to be honest...

PLAY UP POMPEY!


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Writer:pompeyrug
Date:Tuesday November 3 2009
Time: 3:00PM

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Comments

0
A loan???...Call me stupid, but why has "Our Fridge" bought this club and then immediately gone out and got a loan? We were in debt before he bought us; and now we're in even deeper...Well thanks for nothing you muppet, do you not have any money of your own? Do me a favour, sell up to someone who has got money and clear off you joker!
pentonpompey
03/11/2009 14:51:00
0
And then what....
FootyFans
03/11/2009 15:22:00
0
Pentonpompey, these people don't get rich by using their own money, they work on the principal that what they are borrowing will have a lower interest rate then the earnings they hope to make; the risk is if they don't what is the money secured against? My concern about Jacob is after his no borrowing and no interview took place statements he is 0-2 down on accuracy so far.
russellm
03/11/2009 15:39:00
0
From what is in the public domain at the present time, I can only draw the conclusion that PS is totally inept and incompetent - although I know this cannot possibly be true - can it? That aside, we now have a situation where we have swapped paying star footballers wages to pay interest on another 15m of debt. The money Sacha loaned the club was serviced at a whopping 17%, how much are we paying Chainrai? I don't know about re-structuring, we are just robbing Peter to pay Paul at the moment. Although I may be wrong, without all the info we cannot possibly know, but this is what it looks like, given what we know.
gandor1
03/11/2009 15:43:00
0
I would imagine This is the way most premier league clubs are run. As RusselM States, whilst they borrow 15 million, Al Frag can utilise his money to say dig for oil, making billions, thus payinh the debt off with his healthy profit. Good in theory!! But a risk. Wonder how man city is run, you cant just spedn 200 mill where does it come from??
evildwarf
03/11/2009 16:01:00
0
There are very few clubs in the top two flights that are running in positive figures - Even the apparently 'brilliantly run' Tottenscum will have a few debts here or there. The world works on credit these days, and clubs like Man City just got incredibly lucky. I think it's safe to say, we will continue running up debts until the core infastructure is completely re-designed - I'm talking about a new stadium and training facilities. Once we have a boosted ground capacity, and can price the hardcore back in, only then will we be likely to see a boost in our earnings. We're shifting debts around - paying one off by lending from another - but, if Faraj's long-term plan is what I'm piecing it together as, then things should start taking shape, hopefully before the end of the season. This club was clearly horrifically run over the past few years, and there are people still working here that have to take some of the blame, but I agree with Jacobs, with what's been happening here, it can't just be sorted overnight, even if they have the money to do so.
powered_by_pies
03/11/2009 16:22:00
0
The thing is that the new owners must be in it for the long term, say ten years to start with but longer would be better. Pompey will have to be in even more debt before it gets better and the revenue starts coming in its about turning Pompey into a worldwide name really this is where the money comes from ie merchandise etc. But we really need to put the infrastructure together with a new stadium and training facilites first on the list. Then when that happens the loans will need to be paid off. I am hoping by next summer the training ground and stadium will start to move forward. But in the meantime it is about investing in the january transfer window and bringing in some more quality players to boost the squad. About 4 quality signings would be good and maybe get rid of a few more deadwood players.
evildwarf
03/11/2009 16:41:00
0
Lay off PS guys! I know he's no angel, but - these new owners will only tell him what they want to tell him (i.e. "you have THIS MUCH to spend"). I know he's the Cheif Exec, but that means he runs the club day to day with the money he has at his disposal. What concerns me is what they are securing the loan against!! TV Money !!! Have they not noticed, but there is no guarantee that we will be getting that for much longer. Never a dull day. PUP
BarneyArmy
03/11/2009 16:53:00
0
What I don't get is the massive difference in the supposed amount the club are in debt for. In the more reliable journals the figure of £75mill is banded about. One of these being the Guardian who have been pretty accurate about the shenannigans at PFC over the past months. Others are talking of £10mill, and saying we are in a healthy position compared to most in the EPL. If the £75mill is right is this £15mill going to be tagged on to that?
cornypomp
03/11/2009 16:54:00
0
Russellm, I appreciate Business people don't use their own money, they use others; but this is usually put up against something tangible...But unless Our Fridge has put up our Tv money or he has got the land from the Fake Doctor, then i struggle to see where got his collateral from. If he has borrowed £15 mill to pay debts and Octobers wages, then what is he going to borrow for November, Dec, Jan, Feb....Blah blah blah. That is what I mean by find a buyer with financial backing instead of this embarrassing scenario. My exFather in Law this year bought a Maserati and a Merc M class for himself and his wife. I asked him if things were that good, Fine he said, it wasn't his money, it's the banks. He put the 120k up against the business. At least he has a business to put it against. Pompey from where i'm stood don't, they have what I would call an existence at the moment.
pentonpompey
03/11/2009 17:51:00
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