And you have 3x10m installments from the previous 3 years, so 40m.
All these factors are taken into consideration before coming up with said budget
That window where we only bought Cech is gonna pay off eventually!
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I trust your expertise in our accounting practices.
Aww
Yeah I get that but we still spent almost 10 million on interest. That is a lot lower than it was but still not irrelevant.
Interest payment is included in gross debt Iād imagine, so our reserves cover that as well.
We basically have the money to either extinguish the debt today or just keep paying the annual installments out of our reserves. Our operational budged should be completely independent from the debt.
Yes but it is still not the same as having zero interest payments. We have more money to spend than before without spending reserves. And when we retire the debt, we will have close to 10 million more, without touching reserves.
The point of the reserves is to service the debt. There is little sense in a debt-free company to keep reserves, especially of such proportion. We spent 10 years saving cash in the reserves so we can service the debt, we didnāt do it so that we simply can have reserves.
So yeah, itās basically like having 0 interest payments left to pay, because we already have saved the money for that and we can do it any time we like.
I agree that you have debt often as a company, but this is debt from one big, giant investment that is going away. Interest payments have absolutely had an impact on our spending bc it directly impacts cash flow. Even if you argue it is irrelevant in the sense that it isnāt a big burden bc of reserves, which id still quibble with, it absolutely has an impact if we are trying not to be loss-making.
Does anyone know where the idea of a 200m warchest came from, and was it as big as that, or was it just made up to keep the supporters quiet?
Kroenke is a penny pincher. We will be lucky if we get any decent talent come summer.
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It is bs and not even sure it is direct quote. If we are beholden to only spending what we make, then it is also irrelevant. Iāll have to check on latest reserves figures, but a bunch of that is there for operating expenses, contingencies, and some as required by loans iirc.
So while we clearly could still spend a bunch of our reserves, we havenāt tended to do that. The notion we were ākeeping our powder dryā seems BS although we have spent a lot more the last 3-4 years.
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I donāt buy the whole 40 million thing, with the Adidas deal, Emirates sponsorship, if we get CL football and selling off a few of the squad. Some of the press know how to rile up the Arsenal fanbase by putting out 40 million and watch the fanās click onto their sites for views.
I do wonder how the fanās will react with a summer of cheaper buys while other clubs bring in top names. I could see protests happening towards Kroenke and his cronies unless Emery and the guys who are looking out for talent bring in names who hit the ground running and Youngsters who turn into top class talent overnight.
Imagine if the Scum win the CL (just thinking of it makes me sick), even if we win or lose the EL final. The fanās will be calling for the board to spend big money, this penny pinching stuff wonāt go down well. This summer needs to be a statement or I could see us falling behind even more and protests happening sooner then later.
I wait until the summer to see what happenings before I pass judgement.
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Yes Iām sure the boards briefing Ornstein weāre only spending 40 million because itās really only the first installment of a 120m budget to deliberately piss off fans and reduce season ticket renewals because of accounting.
No itās because 40m is our entire budget inclusive of installments over 3 years.
Are we all taking into consideration that Emery has 600 peopleās wages to cover?
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They are pals right
Ornie has an inside source at the club who briefs him
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Whatās his hit and miss record like for Arsenal rumors?
Infinitely better than any other source.
Something people never want to accept as it invalidates following any other account for rumours.
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