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Anyone who reckons ME is the saviour of Ipswich Town should at least be able to explain ITFC nearly £100,000,000 of debt (bearing in mind ITFC is only a league one outfit)!
Just in case you're being serious, let's go through an example with some hypothetical numbers:
A football club makes a loss (income less expenses) of 300k per month. That loss includes various cash flows including wages physically paid in cash by football club to those employed by the football club.
Company XYZ lends 300k a month to the football club (on a non-interest bearing loan) to allow football club to meet its liabilities as they fall due. That loan gradually builds up and becomes [x]m after 10 years.
Company XYZ is transferring physical cash to football club on a loan facility such that overall the common owner of Company XYZ and football club is losing 300k per month by holding a loss making football club.
If you can't see the difference between you giving your wife £100 to go and spend on something nice or Wonga loaning it to her then there's no helping you.
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