[quote author=FoxForceFive link=topic=39787.msg1090939#msg1090939 date=1271804072]
TBH, I'd take another leveraged buyout if it guaranteed funds for the stadium & players until the stadium is built.
[/quote]
I have been at the wrong end of a leveraged buyout and that's not how it works. In fact, the seller usually strips out all the cash before the company is transferred to the new owner.
In a leveraged buyout, the buyer borrows the funds needed to pay for the company from a bank as a short-term loan at a fairly high rate of interest. Then when they have taken over the company, they arrange a secured loan to pay off the temporary loan mortgage all the property of the company they have just bought, down to the last paper clip. The secured loan is cheaper because of the level of security.
The result is that the buyer has used your own assets to buy you with. The leveraged buyout is only to pay the acquisition costs.
TBH, I'd take another leveraged buyout if it guaranteed funds for the stadium & players until the stadium is built.
[/quote]
I have been at the wrong end of a leveraged buyout and that's not how it works. In fact, the seller usually strips out all the cash before the company is transferred to the new owner.
In a leveraged buyout, the buyer borrows the funds needed to pay for the company from a bank as a short-term loan at a fairly high rate of interest. Then when they have taken over the company, they arrange a secured loan to pay off the temporary loan mortgage all the property of the company they have just bought, down to the last paper clip. The secured loan is cheaper because of the level of security.
The result is that the buyer has used your own assets to buy you with. The leveraged buyout is only to pay the acquisition costs.