Prestwich_Blue said:
They made a cumulative loss of around £90m in the previous 2 years, which is why UEFA investigated them. The additional BT Sport money from the PL will have pulled them in or close to break-even and the CL money might well have put them into profit. They may get something like £20-25m a season from the extra seats in the expanded Main Stand so if all that carried on, they'd be pretty healthy I'd say.
Yes, but it was a cumulative loss post accruals, no? Operating income, EBITDA relatively robust. Also if the facility is an RCF, they don't have to draw down, although they will get charged on unused amounts. The intercompany loan doesn't have a schedule on it. From a business perspective and, I stress, having only perused the most recent annual report, they look ok. If stagnant.
However, this is what I agree with:
Prestwich_Blue said:
But they won't be getting any more CL money for a while (unless they're very lucky) and they'll lose £20m of PL prize money compared to last season if they finish where they are now. You'd also have to question whether a team that can only offer mediocre football and Europa League in a good year will be able to command the premium prices for coprporate facilities that they're looking to achieve. So there's a chance they'll be £50m a season worse off than they might have expected if they were factoring in regular top four finishes and CL income.
And it's quite possible they were relying on a lot of that £50m to pay for the stand.
the company is only as good as the present value of its future cash flows. This an issue, if revenues don't pick up and the regulatory pressures continue, they will struggle to raise financing.
