premiership_boundTony Le Mesmer "Over the past three years we've spent everything that we've had"
10% on stadium
10% on signings
30% on wages
50% on loan repayments
...maybe
exactly.
by Tony Le Mesmer » 18 Aug 2008 14:12
premiership_boundTony Le Mesmer "Over the past three years we've spent everything that we've had"
10% on stadium
10% on signings
30% on wages
50% on loan repayments
...maybe
by Nobby » 18 Aug 2008 14:19
by Northern Git » 18 Aug 2008 14:20
Tony Le Mesmer "Over the past three years we've spent everything that we've had"
by Dirk Gently » 18 Aug 2008 14:25
Northern Git Does RFC own the Hogwood Park training complex? If not who does, and how much do RFC pay to use it?
by brendywendy » 18 Aug 2008 14:25
Hoop Blahbrendywendy we will make a loss this season
any incoming transfer money will be weighted towards offsetting the loss we make on the day to day business side of things.
just look at the accounts for our 1st year to see where the money went while in teh top flight , and how much mr mad is "lieing" to us and "stealing " all our money
just taking a look down the leagues at previous prem teams, and the perilous financial state some of the more recently demoted teams are in to see what hes on about
the money is all in plain view, and what we did with it
if we are getting 22 M less in tv money after parachute payments, have fewer fans coming through the gates, and each fan paying considerably less for their tickets,while only making 6m profit when we were up anyway, it doesnt take a rocket scientist to see why we need to"cut our coat according to the cloth" in order to stop us losing money this season
But that rocket scientist must also realise that costs have tumbled too? Wages are supposely slashed by around 40%, or so we were led to believe anyway.
by Royal Rother » 18 Aug 2008 14:46
Hoop BlahRoyal RotherThe 17 Bus And can I add that any profit would have been after any loans had been repaid.
Loan repayments are not an overhead of a business so do not have an impact on the Profit made, therefore the above statement is completely incorrect.
If the club made a profit of £20m then there will have been surplus funds that may have enabled JM to take some repayments on his loans to the club; to be absolutely clear on this, loan repayments do not have an impact on the Profit.
I usually explain this once every couple of months - twice in 3 days is pushing it a bit, but I suppose, unfortunately, it is the hot topic once again!
Loan repayments due in a year, and long term loans are covered in the annual report though, do they not effect the P&L or is this just for the balance sheet?
The books (to June 07) show that the Chairmans loan hasn't decreased but I think from memory a bigger repayment was planned for for 07-08. If money is paid out to reduce liabilities does this not show up anywhere on the P&L?
I know you keep mentioning, but I don't think you've really explained it to be fair, but I'm not really expecting an accounting lesson, but thanks anyway.
by Hoop Blah » 18 Aug 2008 14:46
brendywendy do you think the 40% reduction in wages covers the 22 million we are losing?
and that loss, as explained, is on top of a huge decrease in income from ticket sales
by Arch » 18 Aug 2008 14:47
by Hoop Blah » 18 Aug 2008 14:49
by brendywendy » 18 Aug 2008 14:54
Hoop Blahbrendywendy do you think the 40% reduction in wages covers the 22 million we are losing?
and that loss, as explained, is on top of a huge decrease in income from ticket sales
No it doesn't, obviously, but trimming off the 8 players we've lost from the squad, including somewhere around £8-10m worth of transfer fee's certainly helps as well though.
40% of last seasons wage bill would be about £12m if we had that enforced across the board of the whole of last seasons squad.
Last season I'm sure you were telling us we wouldn't be spending the Premiership money until it was in the bank (ie we won't spend the 07-08 £60m or whatever it was worth). Surely that means we've still got last years windfall plus the parachute payments to kick in yet.
I don't want us to mortage the future of the club chasing further glory, but I would like to have some explanation of the financial situation over and above Madejski coming out and saying "we've spent it all." I know and appreciate they dont owe us this, but it would be nice all the same.
by Once were Biscuitmen » 18 Aug 2008 15:00
by Hoop Blah » 18 Aug 2008 15:03
brendywendy aaaagggghhhhh
its not 60 million profit!!!!
if it was id totally agree with you
i do agree it was me who said that last year , well remembered!
the windfall from this year is going to be a small profit of <10M, probably<5 M
the parachutes only go partly to cushion the blow of losing 30 odd million in tv money
by Dirk Gently » 18 Aug 2008 15:03
Once were Biscuitmen I know what people don't seem to realize is that the vast majority of professional football clubs in the country is operating at a loss.
In our 1st year in the prem I think it was only the three promoted clubs and Man Utd that actually made any profit at all!
The only way to "compete" is to be even less sane than those around you. I'm quite glad we opt out of this madness as far as possible.
by papereyes » 18 Aug 2008 15:13
by brendywendy » 18 Aug 2008 15:14
]Hoop Blahbrendywendy aaaagggghhhhh
its not 60 million profit!!!!
if it was id totally agree with you
i do agree it was me who said that last year , well remembered!
the windfall from this year is going to be a small profit of <10M, probably<5 M
the parachutes only go partly to cushion the blow of losing 30 odd million in tv money
Who said anything about profit?
Last season people were saying, and I was pretty sure it was you, that we wouldn't be blowing all the Premiership REVENUE before we got it because that was a gamble. I may have been putting words into your mouth, in which case I apologise, but it was certainly an arguement used at some point that we couldn't spend money we hadn't already received.
You're right i regards to the parachute payments of course, which is why the club has restructured it's cost base to reflect the fall in income. I guess we just differ on how close the two figures are. Personally until I see the proof I'm of the opinion that we're doing better financially than is made out in some quarters.
by Hoop Blah » 18 Aug 2008 15:15
papereyes I do like this idea of losing the TV money.
This being money we also 'lost' three seasons ago, I guess.
DG - do the club publish accounts? Was a great proportion of our increased revenue over the last two seasons simply eaten up in increased wages, increased outlay of non-playing staff? Does getting the necessary infrastructure in place over the last two years mean that we can potentially turn increased revenue on our next promotion into wages/spending?
by brendywendy » 18 Aug 2008 15:17
papereyes I do like this idea of losing the TV money.
This being money we also 'lost' three seasons ago, I guess.
DG - do the club publish accounts? Was a great proportion of our increased revenue over the last two seasons simply eaten up in increased wages, increased outlay of non-playing staff? Does getting the necessary infrastructure in place over the last two years mean that we can potentially turn increased revenue on our next promotion into wages/spending?
by papereyes » 18 Aug 2008 15:21
well we had it last year, dont get it this year
thats lost in my book
and three years ago we didnt have it, then still didnt have it- so no, thats not lost
by brendywendy » 18 Aug 2008 15:27
papereyeswell we had it last year, dont get it this year
thats lost in my book
and three years ago we didnt have it, then still didnt have it- so no, thats not lost
Ingenious.
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