We are in Financial Trouble!

[yxee]

Converting an interest free loan into share equity is hardly the sign of an organisations financial well being.

Ordinarily I'd agree if the loan is funding day-to-day costs. This loan was a one-off investment in infrastructure. I'd say the club is much healthier with that debt removed.

 

[Greg Bobkin]

Anyone for TENNIS got the swingball out in the back garden a jug of pimms and a shit load of strawberries the tv in the garden as well COME ON MURRAY

Blimey, it really IS the posh end of Shoreham-by-Sea for you, T....

 

[supaseagull]

We are in finacial trouble!

Regardless of truth- isnt it ironic that the three clubs who have been promoted this year are all have vast amounts of debt(despite what CPFC fans say)

In fact look at the championship table and I challenge anyone to give me a team who isn't in some form of financial difficulty!

 

[Creaky]

Ordinarily I'd agree if the loan is funding day-to-day costs. This loan was a one-off investment in infrastructure. I'd say the club is much healthier with that debt removed.

Precisely - the club is in a better position which makes me wonder why it was necessary - when a business is losing money and the debts exceed the assets and debtors the auditors have to be convinced that it has an ongoing viability - converting a director's loan into shares does just that by reducing the current debts and increasing the commitment of the primary share holder - was the conversion necessary in order for the club to continue to be viable?

 

[Iamapen15]

one of my Directors at work.....

 

[Titanic]

Precisely - the club is in a better position which makes me wonder why it was necessary - when a business is losing money and the debts exceed the assets and debtors the auditors have to be convinced that it has an ongoing viability - converting a director's loan into shares does just that by reducing the current debts and increasing the commitment of the primary share holder - was the conversion necessary in order for the club to continue to be viable?

Perhaps TB always intended 'writing it off' in this way... and is doing it in regular chunks rather than leaving it on the books for years and doing it in one massive chunk??

 

[GreersElbow]

N'awh - to make them feel better, they've got to try and undermine the club.

 

[The Large One]

Precisely - the club is in a better position which makes me wonder why it was necessary - when a business is losing money and the debts exceed the assets and debtors the auditors have to be convinced that it has an ongoing viability - converting a director's loan into shares does just that by reducing the current debts and increasing the commitment of the primary share holder - was the conversion necessary in order for the club to continue to be viable?

Maybe, maybe not.

But there is still an estimated £40m debt outstanding.

For a club like the Albion which is not worth anything like that amount, I'm reminded of Paul Hayward's foreword in Build A Bonfire - "as a figure, it's about as relevant as the angle that the Titanic went down..."

Of course, that would all change with a sustained period in the Premier League.

 

[Creaky]

Perhaps TB always intended 'writing it off' in this way... and is doing it in regular chunks rather than leaving it on the books for years and doing it in one massive chunk??

Maybe he did - it really is the only alternative to his being forced to do so.

If he has intentionally written off the debt in this way then he has demonstrated an incredible level of generosity! - It is a genuine "write-off" of that £40 million, as he owns the vast majority of the shares and the proportion of the club he owns has been increased by a really insignificant amount due to the additional investment.

 

[Titanic]

Maybe he did - it really is the only alternative to his being forced to do so.

If he has intentionally written off the debt in this way then he has demonstrated an incredible level of generosity! - It is a genuine "write-off" of that £40 million, as he owns the vast majority of the shares and the proportion of the club he owns has been increased by a really insignificant amount due to the additional investment.

Exactly.

 

[les dynam]

What's a 'subbie'? Is it slang for a sub-normal person aka palace fan?

 

[yxee]

It's not a total write-off, his holding went from 77% to 91%.


https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC8QFjAA&url=http%3A%2F%2Fwww.northstandchat.com%2Fattachment.php%3Fattachmentid%3D40798%26d%3D1364033360&ei=39PWUZfYDubW0QXM7YC4Cg&usg=AFQjCNFcKtKqgY4n2wj8eX6Z0rdMMVEQlQ&sig2=w5zrJB2EDW4R8KV3acpKuQ&bvm=bv.48705608,d.d2k&cad=rja


Very last page, items 28 & 29.

 

[Miffy]

So not only has the accountant breached the most basic of his or her professional requirements and risks losing their professional qualification, disciplinary proceedings with their professional body and left the firm open to be sued by their client but if things are worse than they look they are also saying that they, and the auditors, have submitted fraudulent accounts in order to hide the position. Hmmmmm would love to know who they are but I'd say that's total and utter

Maybe, maybe not.

But there is still an estimated £40m debt outstanding.

For a club like the Albion which is not worth anything like that amount, I'm reminded of Paul Hayward's foreword in Build A Bonfire - "as a figure, it's about as relevant as the angle that the Titanic went down..."

Of course, that would all change with a sustained period in the Premier League.

Don't the club own the stadium? That's a pretty valuable asset on the balance sheet well in excess of £40m. Agree club is not worth anything like £40m ... I'd say worth quite considerably more

 

[Rookie]

Just reading that thread, not only do they believe it they now think Bridcutt will be sold on the cheap. Strange

 

[Return of the Rev]

Lost 16 million over two years with record crowds and income but the arrogance kicks in and we stick our heads in the sand

 

[dougdeep]

I challenge anyone to give me a team who isn't in some form of financial difficulty!

I think Peterborough are pretty sound but of course they went down.

 

[Sergei's Celebration]

Lost 16 million over two years with record crowds and income but the arrogance kicks in and we stick our heads in the sand

Where does it say 16million over two years when only 1 years of accounts have been released? Or did i miss somehting

 

[Creaky]

Don't the club own the stadium? That's a pretty valuable asset on the balance sheet well in excess of £40m. Agree club is not worth anything like £40m ... I'd say worth quite considerably more

The stadium is owned by Community Stadium Ltd - the club by Brighton and Hove Albion Football Club Ltd - the shares for both companies being 100% held by Brighton and Hove Albion Holdings Ltd.

One company in the group can fail without it affecting the whole group.

 

[seagullsovergrimsby]

Lost 16 million over two years with record crowds and income but the arrogance kicks in and we stick our heads in the sand

new sponsorship deals and a new caterer , staff reductions to remove surplus jobs , these suggest the tide is turning.

 

[Rookie]

Lost 16 million over two years with record crowds and income but the arrogance kicks in and we stick our heads in the sand

Is it sticking head in the sand or failing to believe that an accountant (putting his job at serious risk if true) over lunch has told someone confidential information about one of his accounts which has then in turn been passed on to a Palace fan to post on the internet. All this done without any wind of it on here or beyond the knowledge of people on here who are good at looking at the accounts of the club and questioning things