Hibs - Interest payments
The club has a number of different borrowings that it has to be off. The graph below shows the breakdown of these.
The amount of interest paid to the bank peaked in 2000 at nearly £150,000 but has declined since then to under £20,000 in 2006. The total amount left to be paid off to the banks was £680,000 in 2006, but was reduced dramatically in 2007 to £70,000.
The mortgage payments required to pay for the ground development is steady at around the £350,000 to £370,000 mark. There are two mortgages in place. The first was for an initial £4m. This is being paid off with a variable interest rate. The second mortgage is for £2.5m. This also has a variable interest rate, but the club have an agreement with the lenders to make no payments until a single one off payment on this in July 2020. This looks an excellent deal in the short term. The total amount left to pay off on the mortgages is £6.5m.
Their have been several re-negotiations of the terms of the mortgages. It would seem that the club is paying off the interest on the loans but none of the capital. The interest rate rises in 2007 took the mortgage interest payments above £400k for the first time. As can be seen from the graph the mortgage interest is by far the biggest contributor to interest costs, and it has to be hoped that the rate does not rise any further.
There have been a number of short-term loans over the years. These currently have £30,000 outstanding on them.
In 2003 money was leant to the club by Messrs Farmer and Petrie. The big drop in interest payments between 2004 and 2005 came from some of these these loans being written off when the car park was sold. See here for an more detailed look at the money that goes between the club and HFC Holdings
2008 - the loans from the HFC Holding company have all but been cleared, and all the loans now relate to mortgage payments of ground and training facilities
