Bulldoze The Debt

[LostDoggy]

Sounds like a pretty good plan to me! Really surprised we didn't do something like this earlier especially after seeing how succcesful Melbourne's debt reduction campaign has been. I for one will be adding on some extra dollars to my monthly payment. How do you think it will go?

[EasternWest]

I'm not sure if it will work to be honest. We're traditionally a less well off supporter base, and I'm not sure we'll be able to pony up the money.

But my biggest concern is this: what if we only manage to raise say three million? That'd leave us two million still in the hole, and it would only be a few years before the interest on that two million would swallow all the funds we'd managed to raise.

That would make the plan a spectacular failure. And with the taste of that still hanging around, how could the club come back to us, the members and supporters, and ask for more again?

I like the idea, I hope it works but I'm wary of the ramifications if it doesn't.

[Remi Moses]

The debt has been a Severe hinderance forever I for one will be donating,can understand how some people can't.Just hope the club has some plans drawn up and just isn't going to sling all it's members

[Bulldog Joe]

I'm not sure if it will work to be honest. We're traditionally a less well off supporter base, and I'm not sure we'll be able to pony up the money.

But my biggest concern is this: what if we only manage to raise say three million? That'd leave us two million still in the hole, and it would only be a few years before the interest on that two million would swallow all the funds we'd managed to raise.
That would make the plan a spectacular failure. And with the taste of that still hanging around, how could the club come back to us, the members and supporters, and ask for more again?

I like the idea, I hope it works but I'm wary of the ramifications if it doesn't.

Not sure how meeting the interest on a reduced amount could create difficulty as opposed to trying to meet the interest on the entire current principal amount.

[EasternWest]

No that's a fair point but the interest on two million is still a lot and if we can't find the means to service that fairly quickly, the total will compound fairly quickly.

[The Coon Dog]

[Topdog]

No that's a fair point but the interest on two million is still a lot and if we can't find the means to service that fairly quickly, the total will compound fairly quickly.

At the moment we are paying ~$450k a year on the interest.

If we reduce the debt by $3m we will be paying ~$180k a year. So we could leave the debt untouched for another ~8 years before it will be back to $5m debt. Not sure why you think that we won't touch the debt after raising funds via this scheme though.

[bornadog]

At the moment we are paying ~$450k a year on the interest.

If we reduce the debt by $3m we will be paying ~$180k a year. So we could leave the debt untouched for another ~8 years before it will be back to $5m debt. Not sure why you think that we won't touch the debt after raising funds via this scheme though.

Can we all put in $50 and present a WOOF Debt reduction.

We need a seperate thread with a sticky and a pledege from all. WE could easily raise a few thousand.

[EasternWest]

At the moment we are paying ~$450k a year on the interest.

If we reduce the debt by $3m we will be paying ~$180k a year. So we could leave the debt untouched for another ~8 years before it will be back to $5m debt. Not sure why you think that we won't touch the debt after raising funds via this scheme though.

I'm not saying that I don't think we will. I'm saying it concerns me that we may still have an amount outstanding that will be accumulating interest (this is of course working on the assumption that we wont reach the five million, which of course I hope we do).

If you're referring to the reasons as to why I think we might struggle to reach the full debt amount, I think that is fairly self evident. Low member base, traditionally socio-economically low area. The fact that we even have the debt reflects these things.

I'd love for my concerns to be proven misplaced, but it will be a bitter pill to swallow if we hand over what we can afford now and in ~8 years the club comes back to us again for more.

[Topdog]

I'm not saying that I don't think we will. I'm saying it concerns me that we may still have an amount outstanding that will be accumulating interest (this is of course working on the assumption that we wont reach the five million, which of course I hope we do).

If you're referring to the reasons as to why I think we might struggle to reach the full debt amount, I think that is fairly self evident. Low member base, traditionally socio-economically low area. The fact that we even have the debt reflects these things.

I'd love for my concerns to be proven misplaced, but it will be a bitter pill to swallow if we hand over what we can afford now and in ~8 years the club comes back to us again for more.

I doubt we will reach it but can't see how any gains could be seen as a negative.

Many clubs have debt and we have had this debt for a long, long time now. With our balance sheets each year heading in the right direction I am confident that the club will be rid of this debt in 2 years.

The club could only come back to us if they are managed poorly. If that happens I doubt we will still have a football club in ~8 years.

[EasternWest]

I doubt we will reach it but can't see how any gains could be seen as a negative.

Many clubs have debt and we have had this debt for a long, long time now. With our balance sheets each year heading in the right direction I am confident that the club will be rid of this debt in 2 years.

The club could only come back to us if they are managed poorly. If that happens I doubt we will still have a football club in ~8 years.

1. Not sure where I said it was a negative?

2. The club could come back to us at anytime, regardless of management. If we don't completely pay off the debt with this push, then we still have an amount that a) needs servicing from somewhere and b) accumulates interest. That's my concern.

[Topdog]

1. Not sure where I said it was a negative?

2. The club could come back to us at anytime, regardless of management. If we don't completely pay off the debt with this push, then we still have an amount that a) needs servicing from somewhere and b) accumulates interest. That's my concern.

Well you are wary of ramifications which sounds negative because as I mentioned above there really can't be any.

If they do come back to us than it will be due to poor management. If $3m gets wiped off the debt than they will have failed as an organisation to not be able to manage that debt.

[EasternWest]

Well you are wary of ramifications which sounds negative because as I mentioned above there really can't be any.

If they do come back to us than it will be due to poor management. If $3m gets wiped off the debt than they will have failed as an organisation to not be able to manage that debt.

There's a big difference between being wary about something and being negative towards it. It appears as if you've confused the two, or think I've confused the two (I haven't).

Look, it seems I need to be more direct on this for you: it's a great idea and I'm all for it. I will happily hand over what I can to contribute. I'm concerned about the ramifications of us coming up short and not entirely clearing the debt, paying more interest and getting in strife again.

That's it. End.

[Topdog]

There's a big difference between being wary about something and being negative towards it. It appears as if you've confused the two, or think I've confused the two (I haven't).

Look, it seems I need to be more direct on this for you: it's a great idea and I'm all for it. I will happily hand over what I can to contribute. I'm concerned about the ramifications of us coming up short and not entirely clearing the debt, paying more interest and getting in strife again.

That's it. End.

OK quite simply there aren't any ramifications. If we come up short we are still X million better off than we were and continue on as normal.

[EasternWest]

OK quite simply there aren't any ramifications. If we come up short we are still X million better off than we were and continue on as normal.

Disagree. But respect your opinion.