Calculate the interest

I’m just going to play the Devils Adviocat for a bit.

Benign loans is an interesting term that comes up time and again in regards to the money that John Fenty has loaned to Grimsby Town Football Club.

Benign loans is certainly not a term that is used in the world of commercial lending. It appears to be a term John himself used in respect of the money he is loaning to the club, not his share purchases.

It got me thinking as I’ve had a wee bit of commercial borrowing experience in business myself.

First of all, I guess that the more intelligent amongst us probably realise that high street banks and commercial lenders would never realistically lend these sums of money to Town. We just aren’t a viable proposition, with no security either.

So, John Fenty has stood in and took the place of commercial lenders that wouldn’t touch a football club like ours with a barge pole. He has done so out of his own pocket, and he’s called them benign loans.

Benign in terms of no pressure to pay off any of the capital sum whilst he is still involved at the club. You don’t get that privilege when taking out a commercial business loan. You are expected to reduce the capital sum outstanding every single month.

Benign in terms of John’s agreement to not charge a single penny in interest. You certainly don’t ever get commercial loans at zero % interest. Can you image asking a bank to give you a loan with no repayments for god knows how many years and at zero interest?

Now I know that I’m going to be accused yet again as being pro board. I’m not, infact I’m fairly chilled about it. As I’ve said elsewhere, it doesn’t matter to me if we get new owners or not, just as long as they can do financially, at the very minimum, that what John Fenty has done.

So my questions are this,

1: If John hadn’t made these loans what he calls benign, then could Grimsby Town FC have been able to keep up with the monthly repayments?

2: What sum of money has Grimsby Town Football Club saved in interest charges on the huge capital sum that John Fenty has lent Grimsby Town Football Club at zero %. It must be mega. Especially on what is a sum that has hardly ever reduced significantly.

3: This is the big one. New owners. In paying off John Fenty’s loans, it’s a fair assumption that the loans will still sit on the Grimsby Town FC books, but now owing to you. So my question to the new owners is this. In respect of money you will have to lend to Grimsby Town FC, are you prepared to make these benign too, without monthly capital and interest repayments, where interest is going to be zero %. No pressure to repay whilst your consortium is involved in the club?

Maybe these are questions John Fenty expects to be answered too. Maybe these are the assurances he also seeks to protect the football club he loves.

As I said, just being Devils Advocate

IF the loans are truly benign then he won't care when he gets them back or at what rate.

This is not the case though is it, Mike Parker ring any bells. You know someone who gifted the trust $500K worth of shares with no conditions.

Remember where the benign loans come from, John hired and fired who he liked over the last couple of decades, and paid up players to get shot of them, he did this off his own back and should bear the consequences of that.

I'm sure if the deal goes through John will be paid the £200 K for the shares he got free off the trust so deduct that from any interest rates you want to add to his benign loans and shove it up your pro board bottom.

The ‘club he loves’!

Calculate the cost of the free advertising and use of the club on his crusade to local political positions.

Calculate the damage he has done to the reputation of the town and the club.

Calculate the loss of a whole generation of potential young fans because of his inept regime.

The list goes on...

You could debate this until the cows come home and there is no "correct" answer. He's got a decent deal and should take it.

Ok, Phil Night. Very interesting that you want the new owners to do what JF has done financially, for the club. What about what he’s done for the football side? No man who loves GTFC would have allowed the club to fall into non league, let alone spend six years there losing thick end of £3 million in revenue.

Quoted from Marinerz93

IF the loans are truly benign then he won't care when he gets them back or at what rate.

This is not the case though is it, Mike Parker ring any bells. You know someone who gifted the trust $500K worth of shares with no conditions.

Remember where the benign loans come from, John hired and fired who he liked over the last couple of decades, and paid up players to get shot of them, he did this off his own back and should bear the consequences of that.

I'm sure if the deal goes through John will be paid the £200 K for the shares he got free off the trust so deduct that from any interest rates you want to add to his benign loans and shove it up your pro board bottom.

Far too simplistic in your view/opinion

If he never wanted the money back, then the money would never have been called loans. They are loans and the very essence of a loan is that one day it has to be repaid.

You also have to factor in that theses loans are legal loans listed in the accounts. You can’t just wipe them out without accounting for them. They form part of the business liabilities

Quoted from Knut Anders Fosters Voles

The ‘club he loves’!

Calculate the cost of the free advertising and use of the club on his crusade to local political positions.

Calculate the damage he has done to the reputation of the town and the club.

Calculate the loss of a whole generation of potential young fans because of his inept regime.

The list goes on...

That’s just emotional poppycock. Not a rational business argument

Quoted from Knut Anders Fosters Voles

The ‘club he loves’!

Calculate the cost of the free advertising and use of the club on his crusade to local political positions.

Calculate the damage he has done to reputation of the town and the club.

Calculate the loss of a whole generation of fans because of his inept regime.

The list goes on...

Calculate all the freebies of home and away games for him and his family / friends

Calculate the wining and dining

Calculate the job opportunities for family members at the club.

Calculate the free parking home and away for directors right out side the grounds or travelling on the team coach.

Quoted from GrimRob

You could debate this until the cows come home and there is no "correct" answer. He's got a decent deal and should take it.

So it doesn’t bother you if newco comes along, and expects all of a sudden to start taking out monthly payments with interest ?

He fought for control of the club. He got it. The debt built up and up under his tenure.  So any debt should be for him to cover not the club or it’s new owners.

Then there’s the point about Parker. £1m in shares versus £775k for Fenty (he didn’t pay for the other £200k).

These other guys have got much more capacity to support the club than Fenty. Know-how, money, experience. And they can do it ethically.