McDermott via TalkSport

[Harpers So Solid Crew]

. And afterall we can probably sustain a couple of season's of £4m losses if we have to. We've done it before afterall.

We can only sustain a loss if there is someone to lend us the money, we already know that HSBC called in their overdraft, and JM has no money to put into the club, so where wil this £8mill come from?

[Wycombe Royal]

. And afterall we can probably sustain a couple of season's of £4m losses if we have to. We've done it before afterall.

We can only sustain a loss if there is someone to lend us the money, we already know that HSBC called in their overdraft, and JM has no money to put into the club, so where wil this £8mill come from?

Stop mixing up cash flow and accounting profit/loss.

A business making an accounting profit may still go out of business if they don't have the cash. I noticed on the accounts that we had £2.6m (I think that was the number) sitting in the bank.

[melonhead]

andf thats before this seasons sales/black hole


nice to have a bit of a cushion in these hard times

it must be nearly in war chest proportions now!

[Wycombe Royal]

andf thats before this seasons sales/black hole


nice to have a bit of a cushion in these hard times

it must be nearly in war chest proportions now!

That was end of June 2010 and it is impossible for us to forecast what it was like at the end of June 2011. Guess we'll have to wait and see....

[Harpers So Solid Crew]

. And afterall we can probably sustain a couple of season's of £4m losses if we have to. We've done it before afterall.

We can only sustain a loss if there is someone to lend us the money, we already know that HSBC called in their overdraft, and JM has no money to put into the club, so where wil this £8mill come from?

Stop mixing up cash flow and accounting profit/loss.

A business making an accounting profit may still go out of business if they don't have the cash. I noticed on the accounts that we had £2.6m (I think that was the number) sitting in the bank.

If it does not matter why was JM always going on about the losses in the PL accounts, and saying he had to fill the gaps? So there is 2.6m in cash, yet we can sustain a £4m loss over two seasons, sounds like 5.4m has to come from somewhere.

[melonhead]

andf thats before this seasons sales/black hole


nice to have a bit of a cushion in these hard times

it must be nearly in war chest proportions now!

That was end of June 2010 and it is impossible for us to forecast what it was like at the end of June 2011. Guess we'll have to wait and see....

can surely make a half decent guess:
with tickets remain the same, gates the same,
wage bill less? squad size less?
long and mills out - gorkss, mills, ledge, le fondre etc in

i fail to see how we coul possibly have lost any more money last year

but obviousy we'll have to wait for actual figures to get an actual answer

[melonhead]

If it does not matter why was JM always going on about the losses in the PL accounts,

to answer the braying mongs in the east stand when they sing daft songs about wheres all the money gone.

his point was- yes, we made small but decent profits in the two prem seasons, but what you lot seem to forget is teh year on year losses made every season before that

So there is 2.6m in cash, yet we can sustain a £4m loss over two seasons, sounds like 5.4m has to come from somewhere.

i dont undwerstand- could you explain this question- my brain isnt working this morn

[Cypry]

i fail to see how we coul possibly have lost any more money last year

The figures quoted are from the accounts published in June 2010, which also include the last parachute payment.
Last year and this year our income will be significantly less than in that set of accounts....not only because of the loss of parachute payments, but also a significant reduction in TV income....

[Wycombe Royal]

andf thats before this seasons sales/black hole


nice to have a bit of a cushion in these hard times

it must be nearly in war chest proportions now!

That was end of June 2010 and it is impossible for us to forecast what it was like at the end of June 2011. Guess we'll have to wait and see....

can surely make a half decent guess:
with tickets remain the same, gates the same,
wage bill less? squad size less?
long and mills out - gorkss, mills, ledge, le fondre etc in

i fail to see how we coul possibly have lost any more money last year

but obviousy we'll have to wait for actual figures to get an actual answer

But we have no idea about the cash movements within the club. We don't know how any of the transfer deals are structured for example and when/how much payments are made or due. We have no idea about any bonuses due to the players, etc.......

[Wycombe Royal]

We can only sustain a loss if there is someone to lend us the money, we already know that HSBC called in their overdraft, and JM has no money to put into the club, so where wil this £8mill come from?

Stop mixing up cash flow and accounting profit/loss.

A business making an accounting profit may still go out of business if they don't have the cash. I noticed on the accounts that we had £2.6m (I think that was the number) sitting in the bank.

If it does not matter why was JM always going on about the losses in the PL accounts, and saying he had to fill the gaps? So there is 2.6m in cash, yet we can sustain a £4m loss over two seasons, sounds like 5.4m has to come from somewhere.

He is talking in simplistic terms. Cash is king, not profits. He is just trying to justify why we aren't spending as much as people want.

However it does shed some light on where some of the money has gone - it's sitting in the bank.......

[ZacNaloen]

It's rainy day money,

If we come acropper and can't settle the deficit by selling players, or need to kick our manager out.. or get relegated.

We need some money left over to fill the gaps. It used to come from the chairman, not anymore.

[melonhead]

i fail to see how we coul possibly have lost any more money last year

The figures quoted are from the accounts published in June 2010, which also include the last parachute payment.
Last year and this year our income will be significantly less than in that set of accounts....not only because of the loss of parachute payments, but also a significant reduction in TV income....

apologies- i thought it meant all of 2010. silly me!

now i can see why we might be losing more money now.

[Ian Royal]

HSSC: What do you mean where does the money come from? It doesn't come from anywhere it's a loss, by definition that means we don't have it.

It's a hypothetical, but we aren't going to go out of business the second we make a few loses. It may hurt, but we can survive it if we have to, as long as it's not huge amounts and is short term.

[melonhead]

surely it isnt a loss, cos we sold players to fill that lossy hole

[Ian Royal]

Melonwendy... I'm responding to HSSC's quote of me saying that we can sustain a couple of seasons of £4m loses without funding it through player sales with out going totally up poop plateau, IMO.

[FiNeRaIn]

Showed a neutral this thread earlier, to recap his thoughts:

You didn't invest whilst in the prem but received two years of TV money then parachute payments and you have sold in excess of 40 million pounds worth of players since being relegated and yet continue to sell off all your best players and have signed unknown quantities. Stated the only players he could name from our squad were harte, griffin, kebe and alf ( that guy who scored a truck load in league two) At some point during the line ( and only your chairman and back room staff know) you have been HORRENDOUSLY run and you are still paying for that now. Reading are clearly not what I thought they were as a club.

[Wycombe Royal]

Showed a neutral this thread earlier, to recap his thoughts:

You didn't invest whilst in the prem but received two years of TV money then parachute payments and you have sold in excess of 40 million pounds worth of players since being relegated and yet continue to sell off all your best players and have signed unknown quantities. Stated the only players he could name from our squad were harte, griffin, kebe and alf ( that guy who scored a truck load in league two) At some point during the line ( and only your chairman and back room staff know) you have been HORRENDOUSLY run and you are still paying for that now. Reading are clearly not what I thought they were as a club.

Then he sounds like someone who has no business sense whatsoever like the majority on here. Although I'm sure you will come back and say he is a member of the IoD and runs 30+ businesses.

You need to point out to him that a horrendously run club is one like Portsmouth, Bradford, Norwich, Southampton, etc, etc. We have had no money issues, have required no investment (unlike other relegated Prem clubs), have not even got close to administration, have cash in the bank, have not been relegated to League One (yet), etc, etc....

[Simon's Church]

Interesting. I showed this thread to a neautral as well and they said it's good to see a football club being run properly for once.

[Svlad Cjelli]

Clearly someone else who makes the common mistake of thinking that you only buy and sell players and that what you pay them doesn't figure anywhere in the financial equation.

[melonhead]

Showed a neutral this thread earlier, to recap his thoughts:

You didn't invest whilst in the prem but received two years of TV money then parachute payments and you have sold in excess of 40 million pounds worth of players since being relegated and yet continue to sell off all your best players and have signed unknown quantities. Stated the only players he could name from our squad were harte, griffin, kebe and alf ( that guy who scored a truck load in league two) At some point during the line ( and only your chairman and back room staff know) you have been HORRENDOUSLY run and you are still paying for that now. Reading are clearly not what I thought they were as a club.

random neutral is as wrong as you?

my random neutral says he thinks we are great, the moon is made of chese, and jm is a mekon