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  • Colyn Colyn Mar 6, 2013 09:36 Flag

    The latest account figures

    I thought I'd put this up as a seperate thread although it's been discussed in parts elsewhere I feel the topic is worthy of its own section.

    Firstly when I first saw the figures they raised eyebrows but when you delve in deeper there's a kind of mixed reaction. All of acceptance and concern and good.

    many thanks to Andy W for posting this link. The graph in the article is useful and the video is excellent. teh Directors report is also there on page 2.


    Remember the figures are for August 2011 to May 2012. Debt has risen but when you look into things a little deeper then the reasons are there to see. Firstly we must remember that we're reporting over a 10 month period here, not a full 12 months. That means our accounts are now aligned with the football season. Sensible but it means that there's bits missing.

    there's some right offs in there butthe accounts also show that we've bought big, paid big wages and sold for peanuts. Not good business at all. They haven't helped on the field either.

    There's a £46m interest free loan from FSG on the books. I'm not happy about this as it suggests the club can't stand up but most of that has gone against writing off the abortive new stadium plans.

    I've also looked at this article which makes far better reading but it also illustrates the damage that our previous cowboy owners dis. WE'RE STILL PAYING FOR IT!


    I've still got a lot of reading and trying to understand it all. I'm no accountant but overall I think in the next couple of years we'll see a steady improvement although the Carroll debacle will appear on the books at some point. It also demonstrates that Europe is so important. Lastly I still have a concern that our costs are still very high against revenue and that will mean there's less cash available for attracting top talent.

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    • It is all very confusing, having read a number of articles and seen a host of statistics it just gets cloudier. The income seems to constantly go up despite having no champions league which I assume is something to do with the better Sky premier league deals and cup runs but surely is the case for all clubs not that ours is doing well in that department. The worrying thing is the next year will show the loss on Aquilani and obviously in a few years that Andy Carroll signing will show a horror account stat. What we do know for sure is that the wage bill has been drastically reduced, players such as Maxi, Joe Cole and Jovanovic who were pulling an unbelievable £17m per year between them to sit on the bench will be off the list. That is the biggest key for building for the future was replacing the bench earners with Suso's, Sterling's, Wisdom's, Shelvey's who arguably offer more already then their equivalent senior counterparts.

      If you think in terms of squad players, would you rather Sterling or Cole? Wisdom or Kyriagkos? Shelvey or Poulsen? Assaidi or Jovanovic? It is an easy choice for us to see now. I think this will eventually show the an upturn in the books in 2-3 years but writing off a lot of loses on the way might make more bad reading short term with a long term gain.

      • 1 Reply to Hobitez
      • I've been thinking about that Hobs. Aquilani wont hit the books and Carrol might not either. Well not in the way you think. If the cost of purchasing those two has already been paid a year or so ago then that money is gone and already reported in that financial year. Their sale (for whatever it is/ was) will bring a little bit of cash in and is reported in a different financial year. There is also the bonus of their wages etc. not showing on the books.

        So I think (hope really) their sale will be reported in a positve light. The true damage of those transfers was the initial cost against their contributions to the club. F all in reality.

        The increase in revenues is a good thing especially without Europe but sadly some of that is down to cup runs etc. Basiclly more games and we might take a dip this year.

        I'm mixed on the £46m loan from FSG. On one side it's a good thing because we no longer owe anything related to the previous regime's stadium mess / rip off / con. Yes it was a con. Hicks own Architects were running the project. On the other side I don't like the fact that we owe money. It's almost like a first little signal that FSG want the club to stand on its own and they will not pump money in without expecting it back. That too can be seen as a good thing but we all agree that the squad still needs considerable investment. So how will that be funded? At least it's interest free and not a Glazer deal so I think I'm cautiously comfortable with it.

        i want to fuly understand the costs. They appear very high at first glance. Ayre himself says that player movement (transfers) and wages are the biggest draw on the bank balance and I'd just like to undertsand the detail of it.

    • Colyn...glad u read this stuff mate its what I was trying to indicate in that thread I started when I said if the figures had been reported couple months later it would have reflected a very different picture where monies IN monies OUT were concerned. Thats accounting though books can very often paint a bleak or bright picture of essentially the same situation dependent upon when u are required to report.

      • 1 Reply to colin
      • Cheers Colin. I read it. Understanding it is another matter. There's a lot in there but when you consider that it's reporting a period that finished nearly a year ago, and football deals (transfers) span a number of years typically then you can see our problems stemming from a poor transfer policy.

        It always astounds me how much damage those Cowboys did as well. They truly ripped every penny they could and the report illustrates that only last year were we finally shaking lose from their influence.

        What you say is true as well. The press have latched onto the debt increase but there's more in there. Revenue is up despite no Euro football. We're the only club in the Elite top 10 of money earned that isn't in Europe.

        Sadly though I think this seasons poor cup runs will hit us a bit. Less games etc. Europe is still the ultimate aim though. It's worth £30m a season!

        I'm trying to get round our costs which are very high. I'm just rying to understand what's in there.

        The exceptional costs makes ineteresting reading. Nearly £10m of ouch which included the costs of getting rid of Kenny and his staff. Not sure what else is in there. Next year will include Joe Cole's pay off. Ouch