Mel Morris new owner

[Wolfie]

Ramblur is the Johnny Ball of football finance explanation - 80's reference there, for the young 'uns.

Many thanks for the continued clarifications 

[davenportram]

For what it's worth,having apparently just scraped through the £6m FFP for last year,and with an extra £7m to play with this year,I was a little alarmed to find that new amortisation has probably eaten into £5m of this,not leaving a great deal for additional wages.However,as I pointed out earlier, the loanees factor and probable increased income may well have dragged the situation back-but if we don't go up this year,don't expect much transfer excitement next year (without matching sales),because what we've done now has implications for the future in FFP terms.

the £6m limit is for the 14-15 accounts isn't it? Not been lodged yet not until December.

 

 

 

ignore this please just realise you mean we will be tight to get through when accounts are lodged for 14-15.

 

 

[ramblur]

the £6m limit is for the 14-15 accounts isn't it? Not been lodged yet not until December.

 

 

 

ignore this please just realise you mean we will be tight to get through when accounts are lodged for 14-15.

 

 

Yeh,I was only going by what Mel was reported to have said to our group about not having taken out player insurance last year because we were so tight with FFP. Handy information though in attempting to assess our situation for this year. I posted some time ago that if you strip wages + depreciation/amortisation from the expenditure side,what's left doesn't tend to fluctuate wildly from season to season,so I use that as my starting base (and non player wages will also not fluctuate too much).That's why I say you can effectively add the savings on loanees (+any income increases) to the extra £7m FFP 'allowance' and hope this covers the new amortisation/wages (plus I forgot to add into the credit side the  wage savings on outgoing players such as Ward).These things aside,the elements that contributed to our apparent c£6m FFP loss last year will also contribute to the first £6m of our £13m for this year. Looks tight,but I'm fairly confident,and in any case there's always January to make any adjustments (though we wouldn't want forced adjustments).

[Srg]

http://www.skysports.com/football/news/11696/9978992/derby-county-owner-mel-morris-eyes-promotion-to-premier-league

Derby Owner Aiming High

By Rob Dorsett

Mel Morris is used to buying and selling businesses. It's what's helped him make the top 300 in the Sunday Times Rich List, with an estimated fortune of over £400m. But he says buying his beloved Derby County feels different.

"It's a very strange feeling," says the man who was born in Littleover, Derbyshire. "It's not like a normal business – you feel like a custodian, no more than that, because there are so many more stakeholders in a football club compared with a normal business.

"A fan feels much more passionate about this club than someone with a two or three per cent stake in a normal business, and there are 21,500 season ticket holders at this club – I answer to all of them."

I ask him whether he's a bit nervous about it, maybe even a little terrified by the level of responsibility. "I don't do terrified," was the assured response. I wished I hadn't asked.

Morris was a Derby director in 2006/07, under then chairman Peter Gadsby. He says he's matured since then, as a businessman and as a Derby fan.

"I was very emotional about it back then. People will tell you, I couldn't bear to watch the games," he recalls, with a wry smile underneath fixed eyes. "Since then, I guess I've become more philosophical.

"Now, it's all about what we can build here, the mentality and objective of the football club, and it's a big responsibility. Do I feel elated? Not really, I feel very pleased, but also anxious to get our plans in place. It's a good feeling."

Morris sanctioned £10m worth of spending on two players on Deadline Day, bringing in Jacob Butterfield from Huddersfield for £4m and Bradley Johnson from Norwich for £6m. But Derby's fanbase shouldn't expect Morris to splash that sort of cash on a regular basis.

"People see it as a big spend on the last day," he admits. "But we lost one of our star players [Will Hughes, to a knee ligament injury] early in the season. And we promised the head coach [Paul Clement] we would re-assess. Bradley Johnson was a good opportunity we didn't want to miss. Jacob Butterfield was very important for us to cover the talent gap that Will left us with in midfield.

"I'm comfortable with the level of investment we need to make to get where we need to go. But I see this more as a case of sustainability: we need to think about how we bring new players into the club, and we have a new focus on our academy.

"It has to produce players that can progress into our first team over a period of time – that's its role. And I'd like to think that in five years' time, 50 per cent of our first team squad will comprise of former academy players.

"We've got a big academy, good coaches there, and a lot of investment there. This is a statement of belief in our system, and it's about giving a message to the academy players, and encouraging new talent to join our academy. We can say, look, there is a route through to first team football."

Some have raised concerns that Derby's level of spending will bring them into conflict with UEFA's Financial Fair Play rules. Morris isn't concerned. "We were one of the clubs that was very strong and very clear in supporting the idea of FFP. We feel comfortable this year we will be within the FFP guidelines," he said.

"We want to get to the Premier League, but we want to get to a position where we can sustain ourselves in the Premier League, and that's a very different thing," Morris explains.

"We've seen a lot of clubs over the years – including Derby – go up, and then come straight back down. We don't want to do that. So it's about the structure of the club, the shape of the team. We need to get that right, so that when we get there, we won't need to make too many changes; that way, you've more chance of staying in the Premier League."

Morris says he will spend money elsewhere – he doesn't currently plan to extend the iPro Stadium beyond its 34,600 capacity. Instead, the focus will be on improving the facilities there. The corporate hospitality areas will be upgraded, as will the seating. The players are to be taken on a trip to try out a new semi-synthetic surface to see if they like it, prior to one being installed at the stadium.

He's already spent "several million" pounds on the Moor Farm training facility, including the introduction of a state-of-the-art hydrotherapy centre. "To attract the best players, you need the best facilities," he purrs. "We want the players to say, 'Wow! I want to be here!'"

So what of Derby's poor start to the season? Two months ago before a ball was kicked, along with Middlesbrough, they were favourites for automatic promotion. Derby have yet to win a Championship game.

"There are 41 more games to go – take a look at us at the halfway point," he says with a grin. "The injuries have caused us problems, and there's been a lot of bedding-in needed, but we now feel we have a squad that can compete, and I'm sure the results will improve very soon."

Not that there's any threat to Paul Clement, if the positive results take longer to come.

"We can't bring someone in and say, 'This is your first time as a No 1 and you've got five or 10 games to prove yourself'. One of Paul's key roles is to improve players, and I can see many of them have improved since last season.

"We've had a bad run in, injuries haven't helped, but by the Preston game [on September 12] we'll have a fully fit squad, apart from Will, to go forward with and we are very optimistic."

"You can never guarantee when you'll get in the Premier League. I believe we'll get there when we are ready," Morris adds. "It doesn't have to happen this year – we've told Paul that. After the play-off final two years ago, our then-manager Steve McClaren said if we'd been ready for the Premier League, we'd have got there. He was right.

"If it's not this season, then we'll redouble our efforts next year until we get there."

But given the finances of the Premier League, isn't there a danger Derby might get left behind?

"I doubt there's going to be lots more money flowing around in real terms from next season," he says with a sceptical frown. "You and I know that what happens is, fees and wages for players, agents and the like will spiral to swallow that up. It's supply and demand. The numbers will look bigger, but the amount of free cash you have I don't think will change that much."

What has changed, very markedly in the last few months, is Derby's ownership structure, and the mood around the club as a result. Morris became chairman in June, when he bought a 22 per cent stake in the club. He's now purchased all the remaining shares from North American Derby Partners LLP.

Derby has a local businessman at the helm – one with the sort of financial clout essential for success in top level football, combined with a sense of pragmatism and experience to know there are no quick fixes.

It could be a heady mix.

Also See:

[Gypsy Ram]

@Srg good article, thanks for sharing.

[Rev]

Yeh,I was only going by what Mel was reported to have said to our group about not having taken out player insurance last year because we were so tight with FFP. Handy information though in attempting to assess our situation for this year. I posted some time ago that if you strip wages + depreciation/amortisation from the expenditure side,what's left doesn't tend to fluctuate wildly from season to season,so I use that as my starting base (and non player wages will also not fluctuate too much).That's why I say you can effectively add the savings on loanees (+any income increases) to the extra £7m FFP 'allowance' and hope this covers the new amortisation/wages (plus I forgot to add into the credit side the  wage savings on outgoing players such as Ward).These things aside,the elements that contributed to our apparent c£6m FFP loss last year will also contribute to the first £6m of our £13m for this year. Looks tight,but I'm fairly confident,and in any case there's always January to make any adjustments (though we wouldn't want forced adjustments).

Sorry Ramblur, I was part of the group shown around Moor Farm in May, and I can't recall him mentioning Insurance with regards to FFP at all, if it's slipped my mind I'm sure one of the others will correct me.

I do however remember someone else posting about a later Fan forum type event where it was stated that the players would be insured from this season onwards.

 

[ramblur]

Sorry Ramblur, I was part of the group shown around Moor Farm in May, and I can't recall him mentioning Insurance with regards to FFP at all, if it's slipped my mind I'm sure one of the others will correct me.

I do however remember someone else posting about a later Fan forum type event where it was stated that the players would be insured from this season onwards.

 

Apologies,reveldevil,it must have been there that I read it.Wherever it was,there was a definite link between being tight with FFP and not insuring players.The interesting thing about this is that when the 14/15 accounts are published we'll now be able to work out what the value of our FFP exemptions are likely to be. (P/L loss minus £6m)

[Rev]

Apologies,reveldevil,it must have been there that I read it.Wherever it was,there was a definite link between being tight with FFP and not insuring players.The interesting thing about this is that when the 14/15 accounts are published we'll now be able to work out what the value of our FFP exemptions are likely to be. (P/L loss minus £6m)

One things for sure @Ramblur, while you're on the case nothing will get past you, and therefore us!

As mentioned before, Mel is well aware of your talent for decoding the accounts, I don't doubt at all you're on the money with your recent posts either! 

[i-Ram]

Sorry Ramblur, I was part of the group shown around Moor Farm in May.

Is that right Rev? You've kept that one quiet 

[Rev]

Is that right Rev? You've kept that one quiet 

Have I not told you, you selective quoting bar steward!

[The Scarlet Pimpernel]

A different question Ramblur if you are still feeling up to it. In very broad brush terms do we know how much, collectively, the North American owners received through the sale to Mel as opposed to there initial purchase added to their annual coverage of losses? In other words have they lost a packet? 

[ramblur]

A different question Ramblur if you are still feeling up to it. In very broad brush terms do we know how much, collectively, the North American owners received through the sale to Mel as opposed to there initial purchase added to their annual coverage of losses? In other words have they lost a packet? 

Ha,make the most of it because my good spells are now few and far between- in fact I've just picked up yet another chest infection,and with my autoimmune system suppressed by steroids and countless antibiotics having knocked out what was left of good bacteria,I'm now likely to be out of action for another week.

We won't be able to tell until the 15/16 accounts are published a long time in the distance.Just because Mel may have paid £x (and it appears he's paid 4 different amounts now) for the shares representing his 22%,it doesn't mean to say that he's paid these kind of amounts to buy out the NAP holding,so it's absolutely impossible for me to answer your question.

When NAP originally bought the club things were a lot simpler as they bought Gellaw stock,which gave them ownership of DCFC. I've been trying to work out what Mel must have done and it's fairly clear to me that he must have bought out the NAP holding within Global Derby (UK) Ltd to fully own the stock in this company,which in turn would give him full ownership of Gellaw,which then gives him full ownership of DCFC.I fully expect goodwill to arise within Global Derby - this doesn't mean that NAP will have made a profit,as any such goodwill will reflect the difference between the purchase price and net asset value (which is different to the total amount NAP invested,and probably a lot less)

[ramblur]

One things for sure @Ramblur, while you're on the case nothing will get past you, and therefore us!

As mentioned before, Mel is well aware of your talent for decoding the accounts, I don't doubt at all you're on the money with your recent posts either! 

Tbh mundane accounting bores me to death,but this kind of investigative work is far more stimulating.Mind you,it's only this because it's DCFC.

[rynny]

Tbh mundane accounting bores me to death,but this kind of investigative work is far more stimulating.Mind you,it's only this because it's DCFC.

Always nice to see post @ramblur, thank you for all the effort and making it easier to understand.

[Alph]

Wish you the best health @ramblur

[PodgeyRam]

I've made a blogpost on the subject of the clubs ownership. I've tried to go a little bit in depth into the clubs finaces and how they've led us to this situation, but I've not quite managed to find the detail that @ramblur is capable of

http://viewfromtheweststand.blogspot.co.uk/2015/09/mel-morris-takes-control.html

 

[PodgeyRam]

Tbh mundane accounting bores me to death,but this kind of investigative work is far more stimulating.Mind you,it's only this because it's DCFC.

I have to agree, having done a little prying into the accounts myself, I'd never normally do it if DCFC wasn't involved.

[IronRam 140.6]

White wine, never red

never ever red!

supweyer?

Incorrect. 

White wine, together with white meat  is the reserve of those us blessed with  Vaginas, which is perfectly fine.

Ladies and Male moped riders etc.

Red wine, red meat, red tube. Stay red stay safe.

[Pearl Ram]

  just 

[PistoldPete2]

Really grateful for Mel Morris and his big injection to buy the club and some new players. Shame in a way that the Americans couldn't partner up with him, even Mel Morris will need to watch that his cash doesn't get used up like pickerings was. If we get into the prem huge wads will be needed in wages and transfer fees.