Embargos, HMRC Payment defaults, non payment of wages, the usual under Dai Wrongge

[Stranded]

Anyway, at least we aren't under embargo this June like we were last.

[Snowflake Royal]

Anyway, at least we aren't under embargo this June like we were last.

Well you've jinxed it now.

[6ft Kerplunk]

Are we not for all the points deduction stuff last season?

[Franchise FC]

Are we not for all the points deduction stuff last season?

Isn’t it that we can’t pay a fee ?
If that counts as an embargo then we already are

[tmesis]

I just hope they haven’t had to start spending the season ticket money already.

Would it be early? ST money is generally used to fund clubs over the summer when they have no other income.

Well the season doesn’t normally end until May and contracts officially end rump of June. And ST income covers matchday attendance next season.

So I'd like to think ST money is allocated to cover a %age of costs each month from July/August through to June/July.

Prize money etc won't be paid out until the end of the season, so any well run club should be using that to round out the end of season costs.

I'd actually suggest these days, when a high proportion of the total crowd is season ticket holders, season ticket money would be used to do rather more than keep us ticking over during the summer.

[Snowflake Royal]

Would it be early? ST money is generally used to fund clubs over the summer when they have no other income.

Well the season doesn’t normally end until May and contracts officially end rump of June. And ST income covers matchday attendance next season.

So I'd like to think ST money is allocated to cover a %age of costs each month from July/August through to June/July.

Prize money etc won't be paid out until the end of the season, so any well run club should be using that to round out the end of season costs.

I'd actually suggest these days, when a high proportion of the total crowd is season ticket holders, season ticket money would be used to do rather more than keep us ticking over during the summer.

Yeah, that was my point.

[Stranded]

Are we not for all the points deduction stuff last season?

Isn’t it that we can’t pay a fee ?
If that counts as an embargo then we already are

Its not an embargo as we can register players. This time last year, we weren't even allowed to do that.

Admittedly given the complete lack of any movement as yet, the speed of this takeover has us in a self imposed embargo anyway.

[Franchise FC]

Are we not for all the points deduction stuff last season?

Isn’t it that we can’t pay a fee ?
If that counts as an embargo then we already are

Its not an embargo as we can register players. This time last year, we weren't even allowed to do that.

Admittedly given the complete lack of any movement as yet, the speed of this takeover has us in a self imposed embargo anyway.

Ah, understood

[Forbury Lion]

Cash flow and revenue are not the same thing
Cash will be used when required
Revenue allocated to relevant months simply as an accounting treatment

For the benefit of others, it's the same with costs.

You might have to pay a transfer fee on set dates, maybe even fully up front but you may choose to account for the cost over the length of the contract, Same with player bonuses, They may be paid at the end of the season but you might account for them in installments up to that point

[Clyde1998]

Cash flow and revenue are not the same thing
Cash will be used when required
Revenue allocated to relevant months simply as an accounting treatment

For the benefit of others, it's the same with costs.

You might have to pay a transfer fee on set dates, maybe even fully up front but you may choose to account for the cost over the length of the contract, Same with player bonuses, They may be paid at the end of the season but you might account for them in installments up to that point

Most clubs won't pay everything upfront either. From what I've seen, only half gets paid up front on average - with the remainder scaling down over the length of the contract (that obviously depends on what's negotiated and the fees in question).

This is probably a factor as to why we struggled to get financially stable in the Championship - we were probably still paying off transfer fees for players like Joao, Puscas, Ejaria, etc. as their fees would've been spread out over a period of time and that's on top of their wages. And any player we sold would've had the reverse issue - we don't receive everything up front.

[Dirk Gently]

Most clubs won't pay everything upfront either. From what I've seen, only half gets paid up front on average - with the remainder scaling down over the length of the contract (that obviously depends on what's negotiated and the fees in question).

This is probably a factor as to why we struggled to get financially stable in the Championship - we were probably still paying off transfer fees for players like Joao, Puscas, Ejaria, etc. as their fees would've been spread out over a period of time and that's on top of their wages. And any player we sold would've had the reverse issue - we don't receive everything up front.

As an aside, that's one of the reasons why the club bit off Hoffenheim's hand when they wanted Gylfi in 2010. They do a lot of finances differently in Germany, and Hoffenheim paid the whole fee in one lump sum, up-front.

[Snowflake Royal]

Most clubs won't pay everything upfront either. From what I've seen, only half gets paid up front on average - with the remainder scaling down over the length of the contract (that obviously depends on what's negotiated and the fees in question).

This is probably a factor as to why we struggled to get financially stable in the Championship - we were probably still paying off transfer fees for players like Joao, Puscas, Ejaria, etc. as their fees would've been spread out over a period of time and that's on top of their wages. And any player we sold would've had the reverse issue - we don't receive everything up front.

As an aside, that's one of the reasons why the club bit off Hoffenheim's hand when they wanted Gylfi in 2010. They do a lot of finances better in Germany, and Hoffenheim paid the whole fee in one lump sum, up-front.

Corrected

[Mr Angry]

With the news today that the exclusivity period for Chiron is up and withh no sale in sight, the omens are bad for the payment in full and on time of June's salary commitments.

FFS.

[Franchise FC]

With the news today that the exclusivity period for Chiron is up and withh no sale in sight, the omens are bad for the payment in full and on time of June's salary commitments.

FFS.

Is it safe to assume that, were we to enter administration prior to the next due date (20th ish of June for HMRC), we would get the 12 point deduction but avoid any of the suspended ones due to the protection administration affords ?

Just hoping as my fingers are slipping on this straw

[WestYorksRoyal]

I think it could be a few months until cashflow issues come to a head again. This time of year brings season ticket cash, solidarity payments from the PL and the opportunity to sell players if necessary. Plus there could be a big Olise windfall coming in. Would have been nice for that money to help us build for a new era but instead it allows Dai and his toxic regime to linger.

[Clyde1998]

I think it could be a few months until cashflow issues come to a head again. This time of year brings season ticket cash, solidarity payments from the PL and the opportunity to sell players if necessary. Plus there could be a big Olise windfall coming in. Would have been nice for that money to help us build for a new era but instead it allows Dai and his toxic regime to linger.

I think an Olise payment could be the only saving grace - it would hopefully give us enough funds to get through a number of months without needing any additional investment from elsewhere. That would give enough time for another purchaser to be found, should Chiron be completely dead as an option.

Of course, we would all rather it would be used to build something - not continue to allow the current situation to drag on.

[Brogue]

An article in the chronicle and the last paragraph says this

https://www.readingchronicle.co.uk/spor ... -takeover/

The club are unable to partake in the transfer window until governing bodies receive assurances of the ownership situation being solved.

What does this mean, ‘unable to partake in the transfer window’? Is it just poorly worded and it just means we can’t pay for players like last season? Or does it mean we can’t even bring in freebies?

[Stranded]

An article in the chronicle and the last paragraph says this

https://www.readingchronicle.co.uk/spor ... -takeover/

The club are unable to partake in the transfer window until governing bodies receive assurances of the ownership situation being solved.

What does this mean, ‘unable to partake in the transfer window’? Is it just poorly worded and it just means we can’t pay for players like last season? Or does it mean we can’t even bring in freebies?

I would say that simply means the FL won't register any signings until they have absolute assurances that we will be a going concern.

They will not want to allow a player to join the shitshow whilst there is concerns about us actually being able to pay them. It is the key reason why this prolonged delay will only impact us negatively in the short term even if a deal is finally complete.

[Snowflake Royal]

An article in the chronicle and the last paragraph says this

https://www.readingchronicle.co.uk/spor ... -takeover/

The club are unable to partake in the transfer window until governing bodies receive assurances of the ownership situation being solved.

What does this mean, ‘unable to partake in the transfer window’? Is it just poorly worded and it just means we can’t pay for players like last season? Or does it mean we can’t even bring in freebies?

I would say that simply means the FL won't register any signings until they have absolute assurances that we will be a going concern.

They will not want to allow a player to join the shitshow whilst there is concerns about us actually being able to pay them. It is the key reason why this prolonged delay will only impact us negatively in the short term even if a deal is finally complete.

I imagine the players association would also be advising against signing for us until sorted given Dais record on paying, and don't they try to pick up wage support for players whose club folds?

On the other hand the Chronic is shit, so we can't really rely on anything they say.

[Sutekh]

An article in the chronicle and the last paragraph says this

https://www.readingchronicle.co.uk/spor ... -takeover/



What does this mean, ‘unable to partake in the transfer window’? Is it just poorly worded and it just means we can’t pay for players like last season? Or does it mean we can’t even bring in freebies?

I would say that simply means the FL won't register any signings until they have absolute assurances that we will be a going concern.

They will not want to allow a player to join the shitshow whilst there is concerns about us actually being able to pay them. It is the key reason why this prolonged delay will only impact us negatively in the short term even if a deal is finally complete.

I imagine the players association would also be advising against signing for us until sorted given Dais record on paying, and don't they try to pick up wage support for players whose club folds?

On the other hand the Chronic is shit, so we can't really rely on anything they say.

Makes some sense. Wonder if there's any chance of anyone communicating just what the **** is actually going on at the moment. If he's being an arse to deal with then just pull the plug now so we/STAR/whoever can get on with forming Reading Phoenix FC at some level or other.