Their Financial Results

Anyone recogn this is what could be up with them? More that meets the eye.

I hope we are okay! I know we haven't silly spent
 
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mart22 said:
The cost of the investigation would be accounted for if it actually took place. Fabricated investigations and cover ups, it'll all come home to roost.
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I think once Hollicom had a look under the bonnet they decided to do a runner. It could not be cheap to have them drawing cash out the company either.
 
Whoa, £13m drop in revenues without any change in competitions they participated in?

That is crazy. Unless they are doing some creative accounting to make next years losses look not so bad, they are in a slightly compromised position.

They're running at an (effective) £24m loss before signings, didn't really sell anyone and the cash reserves have been burned on this seasons signings and wages.

They are going to be deep in the red by the end of the season unless they unload a few players, but some of the markets they get rid of players into aren't buying players and definitely aren't buying players for the values they want.

They needed the Champions League money this season by the looks of things, but can just about cope without it through a load of overdraft facilities being opened up.

However, should we take the title off them this season and they fail to navigate some tough rounds to the Champions League then Dave King will be proven right.
 
Sasa said:
Gents, I’m an accountant and have experience previously with football clubs.

That £24.2m gain on player sale is Kieran Tierney. That’s about it id imagine.

According to google his fee was £25m.

He would have been valued on their books at his agents fee. Which is next to nothing.

When you come up through the ranks of the kids - like I think he did - he has no value. He wasn’t bought. Therefore he is valued at a nominal fee, usually his agents fee.

So they’ve made a £100k operating profit after making around £25m on the sale of Tierney.
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This is good news. Thanks for the insight.
 
Sasa said:
That’s not true, unless you know the actual circumstances of each individual sale.
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It's true as a general rule. Transfer fees are normally structured in installments. Most teams do not pay the entire transfer fee up front.
 
Sasa said:
Gents, I’m an accountant and have experience previously with football clubs.

That £24.2m gain on player sale is Kieran Tierney. That’s about it id imagine.

According to google his fee was £25m.

He would have been valued on their books at his agents fee. Which is next to nothing.

When you come up through the ranks of the kids - like I think he did - he has no value. He wasn’t bought. Therefore he is valued at a nominal fee, usually his agents fee.

So they’ve made a £100k operating profit after making around £25m on the sale of Tierney.
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Okay im a delivery driver so I wouldnt understand a thing. Is their a possible chance of popcorn and vodka time?
 
Sasa said:
Gents, I’m an accountant and have experience previously with football clubs.

That £24.2m gain on player sale is Kieran Tierney. That’s about it id imagine.

According to google his fee was £25m.

He would have been valued on their books at his agents fee. Which is next to nothing.

When you come up through the ranks of the kids - like I think he did - he has no value. He wasn’t bought. Therefore he is valued at a nominal fee, usually his agents fee.

So they’ve made a £100k operating profit after making around £25m on the sale of Tierney.
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So their revenue would have only been circa £46m if not for the Tierney sale? In that context, £80m of expenditure is nuts.
 
brain said:
So their revenue would have only been circa £46m if not for the Tierney sale? In that context, £80m of expenditure is nuts.
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I haven’t seen the statements but it’s unlikely.

“gain on sale of players” is usually a separate line altogether and not a part of revenue or cost.
 
Sasa said:
The profit before tax of £0.1m is a misnomer.

INCLUDED within that number is the gain on sale of players of £24.2m.

So without player sales, they ran a £24m LOSS.

No champs league money this year again, they need to shift some players.
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So selling Tierny saved them
 
Big Buff said:
Folk need to understand that transfer fees are not paid immediately and all up front. They're paid over the course of 2 or 3 years.
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That's cashflow though, which is different from the gain made on the sale of a player (recognized immediately in their accounts) or the registration of a new signing (amortized over the player's contract length).
 
Sasa said:
The profit before tax of £0.1m is a misnomer.

INCLUDED within that number is the gain on sale of players of £24.2m.

So without player sales, they ran a £24m LOSS.

No champs league money this year again, they need to shift some players.
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Who have they sold?
 
Sasa said:
Truthfully - I doubt it.

They don’t really tell us anything we don’t really know already.

1. Covid has impacted them. (And us).
2. They need Champions League football or else they have to sell players.
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Thanks for that. Well they are good at hiding things so who may knows what will happen
 
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