Should we be a bit more worried about the risks associated with Bloom bankrolling us?

[Whitterz]

A billionaire? , then why were we nearly relegated from League 1 a few years back?.

Surely a financial backer worth that much wouldnt let that happen?. I think some people might be jumping the gun. I dont know who these "sources" are, but if TB was worth "billions" and cared so much for the club, he'd have stepped in before the banks refused to lend out any money for the stadium build.

 

[bravohotelalpha]

A billionaire? , then why were we nearly relegated from League 1 a few years back?.

Surely a financial backer worth that much wouldnt let that happen?. I think some people might be jumping the gun. I dont know who these "sources" are, but if TB was worth "billions" and cared so much for the club, he'd have stepped in before the banks refused to lend out any money for the stadium build.

I think you'll find he did, as did others. If it were not for certain people digging deep into their pockets our club would have folded.

 

[beorhthelm]

the reason we aren't worried is a) because he's from a long standing association with the club, b) put up the money, no talk just got on with it c) setup the cash injection in such a way that is secure as i understand it and d) Dick Knight happily handed over the reigns to him. After going to all that trouble saving the club, Knight was hardly going to just let it all go bust with some charlatan was he?

as for Blooms wealth, i make no assumption that his worth is more than (Albion investment) + £1m. talk of him being a billionaire is just talk without real knowledge and you cant hide that sort of amount of assets without people know about it, triple so for £3-4 billion. that would put him in the top 5 richest Aussies, which is a bit fanciful while being anonymous. i maintain its not unthinkable (albeit sadly very unusual) for someone with say £2-300 million to say to themselfs, i have all the money i could possibly need so i'll put £100m in to my club. how many here would happily have stumped up half a eurolottery winnings had he not come along?

 

[Deleted member 22389]

Tony Bloom has a degree in Maths. For me and it may sound silly to other people, that speaks volumes on how you should handle your money.

I like the idea of this club being run properly instead of us spunking millions of pounds on players just because we are desperate to get to The Premiership.
If we are hanging around in The Championship for a few more years then so be it.

We now have the proper facilities to build something brilliant for the future. And it seems to me the only way to guarantee long term success is by having a proper plan.
Unless you are Chelsea or Man City with an endless supply of money, then we have to be careful otherwise the dream will be over before we know it.

 

[bhawoddy]

We have a boardroom packed with a load of Bloom's mates. I don't doubt there's a lot of experience there, but the same could no doubt be said of many football boardrooms.

And as for the post above that says it's hilarious to not thing Bloom is a billionaire...why? The only evidence out there seems to suggest he might be, but quite equally might not be. He's stumped up 150 millionish for a football club, that doesn't mean he's got more than, say, 300 million does it?

So you honestly believe that a businessman would invest half his fortune on a football club in this current climate. Stop dreaming and wake up a bit.

 

[bhawoddy]

I expect that T Bloom keeps the investment for the ground as a book debt for the usual tax advantages. If the money was invested as equity then the income of the club would be liable to corporation tax and any dividend from the club liable to CGT. If however it is a debt, then revenue from the club is set off against that debt. This is just speculation but it would be standard. The reality is that the debt is stapled with the equity stake and so the debt is in fact just a book keeping entry to save the club and TB from paying HMRC a fortune who in turn will spend on long teachers holidays. Paul S as an accountant would probably be able to confirm.

yes , your probabaly right

 

[Minge]

He should go shit or busst this summer and spend £30 mill on new players, you have to spekulate to acummulate, even if it dont' work you can always go into admnitstration and do it again, but get a proper manager in as poyet has been rumbled by me and plenrty of mangers in this division

 

[bhawoddy]

A billionaire? , then why were we nearly relegated from League 1 a few years back?.

Surely a financial backer worth that much wouldnt let that happen?. I think some people might be jumping the gun. I dont know who these "sources" are, but if TB was worth "billions" and cared so much for the club, he'd have stepped in before the banks refused to lend out any money for the stadium build.

He had stepped in before the club was granted permisson to build at falmer it would have been financial suicide. No matter how much you support a club you dont want to just throw money down the pan surely.

 

[El Presidente]

I expect that T Bloom keeps the investment for the ground as a book debt for the usual tax advantages. If the money was invested as equity then the income of the club would be liable to corporation tax and any dividend from the club liable to CGT. If however it is a debt, then revenue from the club is set off against that debt. This is just speculation but it would be standard. The reality is that the debt is stapled with the equity stake and so the debt is in fact just a book keeping entry to save the club and TB from paying HMRC a fortune who in turn will spend on long teachers holidays. Paul S as an accountant would probably be able to confirm.

I'm an accountant, not sure where to start with this theory of yours, but I will start with..........what a load of bollocks.

 

[Driver8]

I expect that T Bloom keeps the investment for the ground as a book debt for the usual tax advantages. If the money was invested as equity then the income of the club would be liable to corporation tax and any dividend from the club liable to CGT. If however it is a debt, then revenue from the club is set off against that debt. This is just speculation but it would be standard. The reality is that the debt is stapled with the equity stake and so the debt is in fact just a book keeping entry to save the club and TB from paying HMRC a fortune who in turn will spend on long teachers holidays. Paul S as an accountant would probably be able to confirm.

Dividends would be subject to income tax not CGT. CGT would only apply if the shares were sold at a profit.

 

[Notters]

He should go shit or busst this summer and spend £30 mill on new players, you have to spekulate to acummulate, even if it dont' work you can always go into admnitstration and do it again, but get a proper manager in as poyet has been rumbled by me and plenrty of mangers in this division

 

[Tooting Gull]

a load of bollocks.

I prefer that to "when the auditor determines that the financial statements of an auditee are materially misstated". Bringing auditing to the kids.

 

[bravohotelalpha]

He should go shit or busst this summer and spend £30 mill on new players, you have to spekulate to acummulate, even if it dont' work you can always go into admnitstration and do it again, but get a proper manager in as poyet has been rumbled by me and plenrty of mangers in this division

The train for selhurst departs in 8 minutes

 

[Brixtaan]

Good, so to wrap things up then I come away from NSC on this occasion none the wiser.

 

[andy1980]

I'm an accountant, not sure where to start with this theory of yours, but I will start with..........what a load of bollocks.

Hi ya, do you understand about the ffp rules and how it affects us, from an accountants point of view?

 

[Tooting Gull]

Hi ya, do you understand about the ffp rules and how it affects us, from an accountants point of view?

I'm not an accountant, but I can say with absolute certainty that even if you do not comply, all you have to do is make up a sponsorship figure for the stadium/training ground/shirts, and it would take years in court establishing whether this was (or more likely wasn't) fair market value, and sanctions being taken. This is what will happen at clubs where turnover nowhere near covers costs (Man City, Chelsea etc).

 

[Albion Dan]

The fact the stadium debt is interest free and turns to equity if unpaid means the club need not worry about that money. The fact the stadium is a cash generating monster is even better and gives us a huge advantage over similar size clubs.

What we all need to worry about now is that we do not massively overspend on players and wages when compared to our now very healthy day to day income. Fans expecting TB to unleash millions on the tranfer market are like a cancer and ultimately lead to an unsustainable football club regardless of owner wealth.

That is the important thing we need to be wary of and what ultimately led Palace and Pompey to ruin.

Fortunately I see no evidence that TB is going to run the club recklessly.

 

[pork pie]

In one word - NO!

Just let the good times be enjoyed by all.

Tony is clearly a very clever and prudent man. I understand that he has lent the Club the money himself as long-term loans, not just underwritten loans like others do.

I do not have a clue how much he is worth, but am confident that he has invested wisely in the Club, and has a clear vision of how he will manage that investment - and that is good enough for me.

 

[andy1980]

The fact the stadium debt is interest free and turns to equity if unpaid means the club need not worry about that money. The fact the stadium is a cash generating monster is even better and gives us a huge advantage over similar size clubs.

What we all need to worry about now is that we do not massively overspend on players and wages when compared to our now very healthy day to day income. Fans expecting TB to unleash millions on the tranfer market are like a cancer and ultimately lead to an unsustainable football club regardless of owner wealth.

That is the important thing we need to be wary of and what ultimately led Palace and Pompey to ruin.

Fortunately I see no evidence that TB is going to run the club recklessly.

As the rules say we can only put £3 million into the club every season and it has to be in equity, does that affect this loan if in 2023 he wants to turn say, the remaining £30 million (for example) into equity. Or does the fact that this was part of a loan agreement that was set up 3 years before the ffp mean it is expempt from that rule?

 

[Herr Tubthumper]

I'm not an accountant, but I can say with absolute certainty that even if you do not comply, all you have to do is make up a sponsorship figure for the stadium/training ground/shirts, and it would take years in court establishing whether this was (or more likely wasn't) fair market value, and sanctions being taken. This is what will happen at clubs where turnover nowhere near covers costs (Man City, Chelsea etc).

And all the time this is happening they will have their Europen license suspended. I personally think a club will be stupid to try and run rough-shod over this new law as UEFA do wield lot of power and are rarely challenged successfully and clubs trying to circumvent the rule will get little support from other clubs, associations or supporters. This rule was the main plank of Platini's campaign so a lot of associations voted it in.