Taking a 20 million pound loan out to cover ‘day to day running costs of the club’.
This isn’t to have a splurge or gamble on promotion: we’re taking a loan out to function; to serve our purpose.
When the owners clearly have no intention of repaying either of the loans - reported to be up to £12 million pounds - I’d say that I these factors very much affect our immediate financial future.
I take it you have no concerns with our current ownership then?
I have serious reservations with our current ownership, but we will have a significant negative income/wages gap at the end of this season, due to parachute payments running out.
The £20 million loan over 4 years was inevitable to make up that shortfall in income, especially if you want to retain key players.
If we get promotion this season, the problem goes away to some extent, but, if not, the £20 million loan gives us another 4 chances.
Until, the Lai loan(s) are officially defaulted, we have to assume they will be repaid, but thus far the signs are not good.
I only have a limited knowlege of company law, but I believe if Lai does default on the loans, there would be serious consequences on him, & possibly also on Ken.