Will British Speedway Survive ?

[MattK]

1 hour ago, Speedtiger said:

Dream on...

The list of business types excluded is minimal. Therefore, there's no reason why speedway clubs shouldn't qualify if they want to take out a loan with a personal guarantee in the current climate:

https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/Ineligible-and-Restricted-Eligibility-Sector-2017.pdf

[arnieg]

31 minutes ago, MattK said:

The list of business types excluded is minimal. Therefore, there's no reason why speedway clubs shouldn't qualify if they want to take out a loan with a personal guarantee in the current climate:

https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/Ineligible-and-Restricted-Eligibility-Sector-2017.pdf

I can't see what this link is supposed to show, can you explain?

[MattK]

2 minutes ago, arnieg said:

I can't see what this link is supposed to show, can you explain?

Yes, it is a list of Standard Industrial Classification (SIC) codes which are ineligible for the Coronavirus Business Interruption Loan Scheme (CBILS) aka the "Government bailout".

Every limited company has one and it describes the nature of the business. For example, Swindon Speedway is "93199 - Other sports activities", Belle Vue is "93290 - Other amusement and recreation activities not elsewhere classified".

It's not an exact science, but neither of those SIC codes are ineligible for the scheme.

[Sidney the robin]

15 minutes ago, geoff58 said:

spot on 

Why is it a loan Geoff???  funny how they worded it the bloody government should be footing the bill.Why should individuals and businesses be punished through no fault of there own they want people to stay at home but how many people live and work from week to week.

[Speedtiger]

3 hours ago, geoff58 said:

you are all doom & gloom never seen one positive post from you !! on a brighter note good job i don't care about what you think 

...seems like you do Geoff 

[SPEEDY69]

13 hours ago, geoff58 said:

not sure it will be loans think they have changed their mind not 100% sure tho ? there is a lot to take in perhaps we will get a explanation of a promoter in time ?? anyway fingers crossed every human being/ business /sports clubs get through this i think you will find answers to your questions tomorrow big speech by chancellor you could be pleasantly surprised pal 

Yes, they are loans which ultimately, we will all pay for.  The money has to come from somewhere and this government has already raised the national debt/borrowing through the roof even before this pandemic.

[The Third Man]

11 minutes ago, SPEEDY69 said:

Yes, they are loans which ultimately, we will all pay for.  The money has to come from somewhere and this government has already raised the national debt/borrowing through the roof even before this pandemic.

I am afraid we will all have to pay eventually and if that's the price to pay to get through it, then so be it

[Stoneroses]

To be honest i dont care how much money it costs, just hope we dont lose our loved one's 

[stevehone]

if it's a loan though how many of the current promoters will be prepared to take it on with an uncertain future?

[waytogo28]

Some tracks might make more money through any possible compo than they would if they were running a full lossmaking season!

[Speedtiger]

11 minutes ago, waytogo28 said:

Some tracks might make more money through any possible compo than they would if they were running a full lossmaking season!

Agreed...WTG and that was my point I made previously....before even making an offer of help the government will audit Sports including BSPA-Speedway and a 1st year novice accountant will see the poor financial state the sport has been in for some time and that will be that. It would be like bailing out Woolworths and BHS.! Also the government will have much more pressing priorities to deal with than speedway. Money will be extremely tight...even for essential services. In the grand plan of this serious worldwide crisis Speedway, I’m afraid, is totally insignificant.

[MattK]

3 hours ago, waytogo28 said:

Some tracks might make more money through any possible compo than they would if they were running a full lossmaking season!

Do you have a link to this "compo"?

[dontforgetthefueltapsbruv]

42 minutes ago, MattK said:

Do you have a link to this "compo"?

Better to ask Geoff - he only comments when he has proof so must have the link you would like 

[Speedtiger]

34 minutes ago, geoff58 said:

what a surprise another doom & gloom post 

Geoff, you need to get your head out of the sand, wise up, grow up and face up to the real world.

[MattK]

36 minutes ago, Speedtiger said:

Geoff, you need to get your head out of the sand, wise up, grow up and face up to the real world.

Can you explain why speedway clubs, which are limited companies, would not to eligible to apply for the Coronavirus Business Interruption Loan Scheme:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

[Speedtiger]

12 hours ago, MattK said:

Can you explain why speedway clubs, which are limited companies, would not to eligible to apply for the Coronavirus Business Interruption Loan Scheme:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

Matt. I’m a realist not a pessimist.

Ive never said speedway clubs are not eligible to apply BUT there’s a big difference in being eligible to apply and actually getting financial help. Not all clubs are limited companies. Speedway doesn’t directly employ that many people as all riders are self employed and Clubs have lots of unpaid volunteers to make the sport work so will not be judge a priority to save jobs which is the main criteria of getting help. Any loans that clubs, who are probably already in debt, may obtain will be only adding to that debt and will no doubt be personally secured by the borrowers. Clubs may have to accept strict loan terms due to desperation because at this stage clubs will have paid out large sums of money in preparation and anticipation of the season starting and much needed cash coming in which leaves them very exposed. As always the devil in all of this will be in the detail. 

 

 

[TB1]

On 3/16/2020 at 11:38 PM, old bob at herne bay said:

With sporting events across the UK now cancelled until further notice, and Speedway surely set to follow once the BSPA has met tomorrow, can British Speedway put 2020 league speedway “on ice” , and possibly just run some ad hoc open meetings later in the year ?

Surely with no meetings, the costs for a club are nil . No rent, no riders wages? These are extraordinary times and covid 19 and the consequential are surely a “force majeure” event ? 

 

 

 

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

[waytogo28]

9 hours ago, TB1 said:

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

Everyone comments on the Government propping up this and supporting that. Yes, of course it's not an endless pot of money - our money - the G. has none of it's own ( other than the around £500 billion they are borrowing on our behalf , for us to pay back ). I agree that the next ten years will be spent ( as the last 10 or so were ) in rebuilding the economy and Yes, income tax and VAT will have to rise. How else do you pay off the biggest ever debt?

And Boris's bold statement of " We will send it packing in 12 weeks" will be yet another foolish utterance and words he will later choke on. The way he has led the handling of the Covid19 crisis, marks the end of his Premiership.

Edited March 22, 2020 by waytogo28
additional point made

[cityrebel]

The announcement that social distancing could persist for another 12 months, will probably rule out most sporting events for the majority of the population.

[MattK]

10 hours ago, TB1 said:

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

A couple of things. Firstly, the Government can't print money, the Bank of England does that. The government issues Gilts (government bonds), which the Bank of England can buy. During the last round of quantitative easing the BoE bought around a quarter of all gilts in existence. The benefit of this is we the taxpayer now no longer have to pay interest on those gilts.

 

Secondly, inflation isn't a bad thing. IN fact most people agree that a bit of controlled inflation is good, as it erodes debts relative to income. In the last decade the government has borrowed roughly £50bn every year, plus we've had £400bn of QE and yet inflation has stayed around historical norms.

I am less concerned about how the government will fund its extravagant plans and more whether help will actually get to those who need it. At the moment I am not so sure.