Bolton (merged) Lennon leaves club

It's a shame to see it happening. I often wonder how any organisation can end up being in over £150m worth of debt. Surely after the first £20/£30m you'd have a little think about sorting something out?
 
I work in financial services and have worked with various football clubs over the years.

One thing you have to separate out of the equation is quasi equity i.e. money that owners put in as loans that they know they are unlikely to ever see again. For various reasons they are called loans although the reality is the money funded losses and the clubs involved never had or are never likely to have the capacity to repay them. If an owner is willing to put this money in then fine but they should be willing to write it off when the time comes and that appears to be the case with Bolton so fair enough.

The ongoing losses and the ability to break even (or run cash neutral) is a separate issue and the Bolton situation is indefensible. Clubs can forecast income forward pretty accurately and whilst they can’t ever predict relegation they will always have it as a possible scenario. Well run clubs will always have a plan, it might take a few years and result in some losses but you have to adjust and implement the plan. It is pretty clear Bolton have failed massively to adjust to dropping out of the Prem league and its years down the line now and they are floundering.
 
Didsbury Dave said:
There but for the Grace Of Mansour go we.

i can't gloat at any football club (unless it was Man Utd) facing ruin. They have fans, some of who are my friends, who have given their life to the club.

I hope they sort it out for the fans' sake.
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I have to agree with this totally.

"There by the Grace of.......".

Go I.
 
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Gaudion M said:
I work in financial services and have worked with various football clubs over the years.

One thing you have to separate out of the equation is quasi equity i.e. money that owners put in as loans that they know they are unlikely to ever see again. For various reasons they are called loans although the reality is the money funded losses and the clubs involved never had or are never likely to have the capacity to repay them. If an owner is willing to put this money in then fine but they should be willing to write it off when the time comes and that appears to be the case with Bolton so fair enough.

The ongoing losses and the ability to break even (or run cash neutral) is a separate issue and the Bolton situation is indefensible. Clubs can forecast income forward pretty accurately and whilst they can’t ever predict relegation they will always have it as a possible scenario. Well run clubs will always have a plan, it might take a few years and result in some losses but you have to adjust and implement the plan. It is pretty clear Bolton have failed massively to adjust to dropping out of the Prem league and its years down the line now and they are floundering.
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You've summed up my main objection to FFP. The bottom line is one thing but it's cashflow problems that kill clubs (and other businesses). Your net profit of three years ago is completely and utterly irrelevant but your cash burn-rate is absolutely key and FFP doesn't look at that at all.

We were in the same position when we moved to the new stadium, which was criminal when we were in the same league and getting crowds that were 50% higher than they wer at Maine Road. We were burning more cash than we generated, which is why Wardle and Makin had to constantly lend us money. That twat Thaksin 'bought' those loans at a significant discount then got the full amount from ADUG a year later.

Eddie Davies has offered to write off his £170m, which is incredibly generous and as long as they can restructure and live within their means, then they' should have a future, even if they initially go into administration. That future may be in League 1 though.
 
Prestwich_Blue said:
You've summed up my main objection to FFP. The bottom line is one thing but it's cashflow problems that kill clubs (and other businesses). Your net profit of three years ago is completely and utterly irrelevant but your cash burn-rate is absolutely key and FFP doesn't look at that at all.

We were in the same position when we moved to the new stadium, which was criminal when we were in the same league and getting crowds that were 50% higher than they wer at Maine Road. We were burning more cash than we generated, which is why Wardle and Makin had to constantly lend us money. That twat Thaksin 'bought' those loans at a significant discount then got the full amount from ADUG a year later.

Eddie Davies has offered to write off his £170m, which is incredibly generous and as long as they can restructure and live within their means, then they' should have a future, even if they initially go into administration. That future may be in League 1 though.
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PB Your insight and knowledge about City is fantastic.

I hope one day, you will put pen to paper in some form, it would be incrediable reading thats for sure.
 
It is just beautiful to watch! I remember when I always felt an affinity with other local clubs,hey I even went to Wembley to support Stockport against Peterborough when I lived in Kent! That all changed when we were at our lowest ebb ourselves as a club and they all took great delight in mocking us and kicking us when we were down....so fuck them!!!!
 
Mr Ed (The Stables) said:
PB Your insight and knowledge about City is fantastic.

I hope one day, you will put pen to paper in some form, it would be incrediable reading thats for sure.
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@Prestwich_Blue

Shut-up-and-take-my-money.jpg
 
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