Club debt

[tbrudges10]

Hi guys was just wondering about when a club is in debt, apart from the monthly payments, if they get in a secure financial position do they start paying more of if they can rather then having payments carry on going until 2025 or something ridiculous I was just wandering the quickest way to pay of the debt?

[Raikan007]

most loans are structured in a way that you will pay x amount (say 800k) for a period of x amount of years (say 20)

banks structure them like this so that they include the interest over that amount of time to make it lucrative enough for them to lend that amount of money out at once..

most banks do not allow more money (say an extra £5m if you have a good month) to be paid in per month on that loan as it diminishes its interest.

however, that is real life and I assume it is the same in the game

[tbrudges10]

Right ok so basically you will be paying the loan back until the end date say 20 years and that's it, if you get taken over what will happen to the finances then are they aloud to wipe the clubs debt if you get takenover by a tycoon?

[Raikan007]

Right ok so basically you will be paying the loan back until the end date say 20 years and that's it, if you get taken over what will happen to the finances then are they aloud to wipe the clubs debt if you get takenover by a tycoon?

basically yes..

I am not sure, I barely get taken over at all.. I assume if they have the cash they will write off the debt, but may pay a larger fee than the original loan