Got something to say or just want fewer pesky ads? Join us... 😊

[Albion] Albion make £12m profit in 2017/18





Sheebo

Well-known member
Jul 13, 2003
29,226
I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...
 


portlock seagull

Why? Why us?
Jul 28, 2003
16,979
I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

Laundering. He has to move cash about whilst waiting for the new ‘Colombian harvest’ :wink:
 


Creaky

Well-known member
Mar 26, 2013
3,835
Hookwood - Nr Horley
I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

For some reason players are treated for accounts purposes in much the same way as say a saw bench is for a joinery firm. The full amount of the purchase price has to be paid to the seller but it is only the depreciation amount that is charged against the P&L.

Buy a player for £100m on a 5 year contract - only £20m is shown as a ‘cost’ on the P&L but you still need to pay the seller the full amount immediately. The money for that has to come from somewhere.
 






LlcoolJ

Mama said knock you out.
Oct 14, 2009
12,982
Sheffield
Great stuff this. I'll digest the full picture tomorrow but one thing is certain.

We now have definitive proof that we're in MUCH better financial shape than Palace.

Can't wait to see their 2018 accounts.......... Oh.

I look forward to Else Pres doing a full analysis so I don't have to read much more of the boring stuff (and I love accounts). But the wages/amortisation v turnover looks like we're doing it right.
 


Good news, finally in the black, Tony’s investment was worth it.

With identical broadcasting income to us, it will be interesting to see how Fulham and Wolves fare in their first PL accounts. Given their huge spend in fees, agents fees and wages for well known internationals.

Since TB has invested over 200 million? and first season to turn a profit I suggest not a great investment over 5 years. 1.2% per year. Might take him another 15 years to recoup at this return. How many of us would gamble on the next 15 seasons. Lucky he is a fan which thankfully seems to override his remarkable business brain.
 






Weststander

Well-known member
NSC Patreon
Aug 25, 2011
63,407
Withdean area
Since TB has invested over 200 million? and first season to turn a profit I suggest not a great investment over 5 years. 1.2% per year. Might take him another 15 years to recoup at this return. How many of us would gamble on the next 15 seasons. Lucky he is a fan which thankfully seems to override his remarkable business brain.

£130m on infrastructure which he wanted for the club regardless of their division.

But on the players side, his backing was telling in getting us to the PL, meaning he won’t need to pump in £25m a season ad infinitum, so his plan worked.

As with most clubs, it is not a normal business model, with return on investment. Done for love of the club, or in other cases selling later for a higher sum.
 




m20gull

Well-known member
Jun 10, 2004
3,414
Land of the Chavs
For some reason players are treated for accounts purposes in much the same way as say a saw bench is for a joinery firm. The full amount of the purchase price has to be paid to the seller but it is only the depreciation amount that is charged against the P&L.

Buy a player for £100m on a 5 year contract - only £20m is shown as a ‘cost’ on the P&L but you still need to pay the seller the full amount immediately. The money for that has to come from somewhere.
Some transfers are now done on an instalment basis, but ours have been funded by additional "borrowing" from Tony.

So although we have made a profit, it is fairly notional. For me, the interesting point is that our income is £140, with costs of over £100m. While you can increase income by finishing higher in the league the main area to increase is commercial income. So even with our salary control, until we can turn an income from property or academy sales we will have about £30m for new players and additional wages. So not even one Benteke.
 




Lower West Stander

Well-known member
Mar 25, 2012
4,753
Back in Sussex
I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

It would be interesting to see the cash flow statement.

Ebitda (the figure left after costs) is pretty small and out of that has to come capex on the stadium, working capital, interest and tax (although I doubt TB charges interest on his loans).

It has probably gone on to cover some of this. Cash flow is very different from profit.


Sent from my iPhone using Tapatalk
 




Gary Leeds

Well-known member
May 5, 2008
1,526
so we had an increase on TV money of 110 million and spent £46 million extra on wages (which we would have to on first season in higher division), Palace got an extra £41 million and spent £31 million of that on increased players wages (having already been an established PL team for a few years and having one of the best squads in the country). Sounds good business sense to me :)
 




GOM

living vicariously
Aug 8, 2005
3,222
Leeds - but not the dirty bit
You want a glimpse behind the curtain of this ultra-slick and professional media organisation? You got it.

#BarberIn

02743861fb76a5008c1a17435ed5c123.jpg

Do people still say soz ? - Clearly they do, I'm definitely no longer a 'with it' 'down with the kids' person
 


spence

British and Proud
Oct 15, 2014
9,811
Crawley
Do people still say soz ? - Clearly they do, I'm definitely no longer a 'with it' 'down with the kids' person

Agreed. Never used it in my life. You would have thought that was for kids. Obviously not
 


Bozza

You can change this
Helpful Moderator
Jul 4, 2003
55,575
Back in Sussex
It would be interesting to see the cash flow statement.

Ebitda (the figure left after costs) is pretty small and out of that has to come capex on the stadium, working capital, interest and tax (although I doubt TB charges interest on his loans).

It has probably gone on to cover some of this. Cash flow is very different from profit.


Sent from my iPhone using Tapatalk

Here's most of it.

Screenshot 2018-12-12 at 08.58.24.png
 






jasetheace

New member
Apr 13, 2011
712
Actually, I'd be interested in some of the fan related minutae. How many more pints/pies/strips/programmes/halfandhalfs etc...
 


hans kraay fan club

The voice of reason.
Helpful Moderator
Mar 16, 2005
61,094
Chandlers Ford
For me, the interesting point is that our income is £140, with costs of over £100m. While you can increase income by finishing higher in the league the main area to increase is commercial income. So even with our salary control, until we can turn an income from property or academy sales we will have about £30m for new players and additional wages. So not even one Benteke.

Your summary assumes that no players will ever be SOLD (or even just be released - freeing up wage commitments)
 



Paying the bills

Latest Discussions

Paying the bills

Paying the bills

Paying the bills

Albion and Premier League latest from Sky Sports


Top
Link Here