Annual Report - 2019/20

[Centurions]

One thing for certain is we certainly buried this news.

On CL game day then announce KDB next day.

Whether it’s because these accounts are bad or just because we knew how the media would portray them.

Anyone know what kind of loss Madrid/ Barca have had?

Buried them? We're not a public limited company and have no requirement to actually publish do we? If that's right then we could have 'buried' them by simply not revealing them.

I might be entirely wrong in the above, but regardless I don't think we can get an idea of where we stand until at least the next set of accounts in November(?) which will still be heavily impacted by Covid. I'm very far from convinced that next season will be back to 'normal'.

Unless I've vastly oversimplified the figures they're looking at £6million to £26million profit this season which would see 'normalised' losses of less than £60 million for each of the two seasons.

 

[whipper]

Football finance isn't something I know anything about, just wondered with Chelsea making a profit in the same period which I know included the Hazard transfer. With their £200 million plus spending spree they've had, will that put them in the same position as us but a year later loses wise?

 

[Prestwich_Blue]

It seems from a few rumors going around city loaded as much debt as possible into these accounts? There is also some rumors floating around of another new major shareholder on the horizon buying Into the CFG?

There's no debt in these accounts but the rise in wages and operating expenses is very odd, considering the circumstances. One possible explanation is that the legal costs of the CAS hearing are included, maybe even a provision for the €10m fine.

@Coatigan did speculate that we'd stuffed as much bad news as possible into these accounts and after initially being dubious I'm beginning to suspect there's something in that, but we'll only know when the 2021 accounts come out.

The statement from the CEO says we'll return to profitability this year so they'll have a good idea of how the figures look now, with 3 months left.

 

[richards30]

There's no debt in these accounts but the rise in wages and operating expenses is very odd, considering the circumstances. One possible explanation is that the legal costs of the CAS hearing are included, maybe even a provision for the €10m fine.

@Coatigan did speculate that we'd stuffed as much bad news as possible into these accounts and after initially being dubious I'm beginning to suspect there's something in that, but we'll only know when the 2021 accounts come out.

The statement from the CEO says we'll return to profitability this year so they'll have a good idea of how the figures look now, with 3 months left.

sorry Colin I phrased my post badly, not debt but extra costings were loaded into these accounts? It was kind of a free hot year?

 

[feedmpenzaandhewillscore]

Football finance isn't something I know anything about, just wondered with Chelsea making a profit in the same period which I know included the Hazard transfer. With their £200 million plus spending spree they've had, will that put them in the same position as us but a year later loses wise?

They also had a transfer ban as well which would have made their cash in the bank look better with no outgoings on new players. Their finances will look a whole lot different when it reflects the outlay from the last transfer window.

 

[Prestwich_Blue]

sorry Colin I phrased my post badly, not debt but extra costings were loaded into these accounts? It was kind of a free hot year?

I realised that's what you meant but apart from the costs of the CAS case (which might well have been considerable) it's hard to think what they might have put in. The 11% increase in wages just doesn't make sense under the circumstances unless it involves one-offs like loyalty bonuses and signing-on fees.

 

[Prestwich_Blue]

Buried them? We're not a public limited company and have no requirement to actually publish do we? If that's right then we could have 'buried' them by simply not revealing them.

I might be entirely wrong in the above, but regardless I don't think we can get an idea of where we stand until at least the next set of accounts in November(?) which will still be heavily impacted by Covid. I'm very far from convinced that next season will be back to 'normal'.

Unless I've vastly oversimplified the figures they're looking at £6million to £26million profit this season which would see 'normalised' losses of less than £60 million for each of the two seasons.

All companies have to file accounts at Companies House whether they're public or private companies. These are freely available so they can't be hidden.

 

[Sir Joe Aguero]

Really curious to see what the new sponsorships will be. £40mil a season for both shirt & stadium rights seems cheap considering all we've won since. Can see Etihad stadium staying for around £25mil a season, and then £45mil-ish for the shirt sponsor.

Then if we expand Etihad to 60,000, that's about another £6mil a year.

That combined is another £36mil a year.

 

[Blue Coop]

Football finance isn't something I know anything about, just wondered with Chelsea making a profit in the same period which I know included the Hazard transfer. With their £200 million plus spending spree they've had, will that put them in the same position as us but a year later loses wise?

Not quite. They’ll have been able to take the profit on any sale instantly, so if they sold him for £150m they’d have been able to book that to profit entirely (less his current value but they bought him for £30m years ago so that’d be very low in the books).For new purchases, you only have to recognise the cost over the life of the contract, so if they then spent £200m and put them all on 5-year deals the annual cost would be £40m.

If you combine the two. They’ve spent net £50m but this would be recognised as below - which shows how they might have benefited in their profitable accounts last year. If that’s the case I’d expect a big loss from them this coming year.
Year 1 - +£110m (150m less 40m)
Year 2-5 - -£40m per year
Total after 5 years -£50m

 

[Coatigan]

There's no debt in these accounts but the rise in wages and operating expenses is very odd, considering the circumstances. One possible explanation is that the legal costs of the CAS hearing are included, maybe even a provision for the €10m fine.

@Coatigan did speculate that we'd stuffed as much bad news as possible into these accounts and after initially being dubious I'm beginning to suspect there's something in that, but we'll only know when the 2021 accounts come out.

The statement from the CEO says we'll return to profitability this year so they'll have a good idea of how the figures look now, with 3 months left.

Imho, no way the club commits to that contract with kev, and others coming, if they arent confident of returning to profitability, and so soon after releasing the accounts too.

And with chit chat on Uefa allowing one off owner investment to offset covid losses away from ffp, if that were to turn out to happen, having a particularly bad looking year doesn't do harm. And if nothing happens, it simply balances itself out as stated by the heirarchy when releasing the books.

Obviously, pure speculation on my part.