The European Kings of Debt

Anyone saying “this is what ffp shouldve been for” need to take a look at themselves.

the exact reason ffp was brought in was to protect those very clubs in that list!!
 
Whilst some of that debt is huge, a lot on that list are in a good business basis despite the debt.

Debt is not a bad thing, especially given historic low interest rates.

Interest rates are still low despite the increases but if inflation continues and interests goes up, then you may see debt levels going down as repayments go up.

However, I imagine this debt is in different ways and money is probably borrowed globally.

I think the debt payments should be included in FFP in the same way as transfer fees and wages. There should also be some monitoring of debt level to company value (although this would be very open to interpretation).

However, us simply saying they have debt they must fail FFP, is not understanding the situation in the same way we get.

Overall the whole things wrong anyway, if a club manages itself into admin and drops down the leagues, so what!! Helps another team take their place and their fans see some glory.
 
Kinkys Left Foot said:
Don't we pay an annual lease fee to Manchester City Council? Once upon a time based on attendance and then it used to be £4m / annum, not sure if there's been some revaluation since then. Is that treated as accrual "without invoice"? Best asking one of the accountants on here for a better definition.
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Without getting too technical. The Stadium is rented from the Council on a long term lease. City are responsible for maintaining the Ground under the terms of the lease. Any major costs such as expansion of a Stand will be paid for by the Club, in our case without going in to debt. If that’s the case the cost of the new Stand is treated as a fixed asset which then appears in the balance sheet as the Stand will have a life of over 12 months. To balance the balance sheet the bank account will go down as the expansion is paid for to the Contractors building it. To replenish the bank, the great Sheikh, and other investors introduce more bank funds and the other side of the balance sheet to keep the balance sheet balancing, will be done by the Club issuing more shares to the existing shareholders. Because the Stands won’t last forever, Company Law says the Club have to apply a wear and tear allowance based on the shorter of the period of the long term lease, just in case the Club have to give the Ground back to the Council or, an estimate of how long the stand will last before it needs replacing. This annual wear and tear goes through the profit and loss account in other words comes off any profit we have made for that year. As a completely separate issue the Club pays an amount to the Council each year instead of paying a percentage of gate receipts. Without going through the Accounts I think it’s £4 million and is up for renewal every 5 years. This is a commercial separate agreement between the Club and the Council and is NOT a lease. The amount ie £4 million will appear as a charge to the profit and loss account , in other words, will come off the bottom line profit. The only bit of this which will appear in the balance sheet will be what's owed to the Council , but not yet paid at the balance sheet date. If the Council have invoiced the Club, but are awaiting payment, it will be shown in the Clubs Accounts as part of Trade Creditors, if they have not yet invoiced, it will be shown as Accruals in the Accounts. To further complicate matters, if the Club have paid in advance, and the period they have paid for has gone beyond the balance sheet date, it will be treated as a prepayment in the Clubs Accounts which is a fancy term for saying we haven’t had our money’s worth yet. A bit like when you pay for your Season Ticket up front but not yet seen all the games. Of course if I was to go all technical I could explain things in greater detail but it would defeat the object of trying to explain things in layman’s terms.
 
Gaudion M said:
The stand out there is the Italian clubs. How the F have they got in such a mess.

I dont think they will all get out of this mess - I think we are getting close to the point where a big european club does a Glasgow Rangers. No wonder the push for a European superleague.
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Hope it happens to the Glazer$ and Florentino Pere$! Would be poetic justice and well deserved
 
Jesus, how have Spurs got so much debt? Most of it on the new stadium I'm assuming? It ain't been spent on transfers that's for sure

Honestly, add Levy to my earlier comment, there's a lot that is just *wrong* with that club under him at the moment
 
The Swiss version is at the very least inaccurate (or outdated) around "owner debt to Abramovich"... as he cancelled all owings from CFC to himself as part of, and in order to aid, the recent forced sale to the Yanks...
 
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