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we are £6.5m in debt


davenportram

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7 minutes ago, G STAR RAM said:

Extremely good news.

However let's not forget that most of the debt reduction was done under our previous owners.

Although at least this shows that MM bought the club using cash rather than debt.

didn't the conversion of loans to the owners into equity happen after Mel had bought 20% of the club? My terminology could be wrong but still think he had a major role in that action taking place.

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8 minutes ago, davenportram said:

didn't the conversion of loans to the owners into equity happen after Mel had bought 20% of the club? My terminology could be wrong but still think he had a major role in that action taking place.

You could well be right but I would have thought that GSE would have cleared their debt prior to MM buying his stake, complete guess work though.

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22 minutes ago, G STAR RAM said:

You could well be right but I would have thought that GSE would have cleared their debt prior to MM buying his stake, complete guess work though.

turns out they did it a year before Mel bought in, during the year upto June 2013.

http://m.bbc.co.uk/sport/football/26817533

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It is down to the generosity of MM that we are in this position but dont underestimate what big Sam has done since he joined. The squad and outgoings were trimmed back during the Clough reign and then once Macca took over we kicked on. During the NC times GSE in my opinion did a fantastic job in stabilising us from the mess that they picked up. The anti US feelings from some of the fans at the time they were in charhe was bordering on scandalous.

The Championship must be scratching their heads how we can spend £25M in 6 months and still be within FPL limits. Personally so do i and im not entirely sure how personal wealth can be used to the extent it has, however the income from the many revenue streams we have must be helping. Most probably the transfer fees have been stretched out so that we pay X amount upfront with the rest in installments; call it creative accounting. Either way its a great time to be a Rams fan and if we do go up I fully expect us to kick on and sign some top players and not just make up the numbers. No doubt subsidised by Mel but with the mega bucks TV money helping also.

 

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1 hour ago, Ram a lamb a ding dong said:

It is down to the generosity of MM that we are in this position but dont underestimate what big Sam has done since he joined. The squad and outgoings were trimmed back during the Clough reign and then once Macca took over we kicked on. During the NC times GSE in my opinion did a fantastic job in stabilising us from the mess that they picked up. The anti US feelings from some of the fans at the time they were in charhe was bordering on scandalous.

The Championship must be scratching their heads how we can spend £25M in 6 months and still be within FPL limits. Personally so do i and im not entirely sure how personal wealth can be used to the extent it has, however the income from the many revenue streams we have must be helping. Most probably the transfer fees have been stretched out so that we pay X amount upfront with the rest in installments; call it creative accounting. Either way its a great time to be a Rams fan and if we do go up I fully expect us to kick on and sign some top players and not just make up the numbers. No doubt subsidised by Mel but with the mega bucks TV money helping also.

 

EMT did a story last night. That £25m is the total including appearance clauses etc. In this accounting period only the initial payment counts for FFP, the rest is spread over the life of the contract. Most gave been for 3years or so. So if we've paid 1/3 upfront that's £8m this year. The rest would be spread over the remaining 2 years of the contracts so another £8m each year. It doesn't sound that bad now. Its all in the structuring of the payments.

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4 minutes ago, davenportram said:

EMT did a story last night. That £25m is the total including appearance clauses etc. In this accounting period only the initial payment counts for FFP, the rest is spread over the life of the contract. Most gave been for 3years or so. So if we've paid 1/3 upfront that's £8m this year. The rest would be spread over the remaining 2 years of the contracts so another £8m each year. It doesn't sound that bad now. Its all in the structuring of the payments.

The wage bill must have gone up too.

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10 minutes ago, Gritters said:

The wage bill must have gone up too.

No doubt our revenue stream increases have largely offset that. Don't you find it very kind of Rupert to subsidise our promotion bid - may become even more popular, can't see Leeds getting too many more home games.

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2 minutes ago, Zag zig said:

No doubt our revenue stream increases have largely offset that. Don't you find it very kind of Rupert to subsidise our promotion bid - may become even more popular, can't see Leeds getting too many more home games.

Yes has the tv money gone up this year? There seems to be more games on sky. I assume we get an extra £100k per home game on tv which i think we've had 3 so far. £300k isn't a lot when you think how much johnson, shackle, bent and ince must be on. Mind you they saved a hell of a lot in bonuses last year.

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2 hours ago, G STAR RAM said:

Extremely good news.

However let's not forget that most of the debt reduction was done under our previous owners.

Although at least this shows that MM bought the club using cash rather than debt.

I'd just like to point out at the time that the League of Gentlemen (fronted by Gadsby, but also including Mel) bought the club the debt was over £50m (some reports reckoned £60m), when it was sold to the GSE consortium it was down to £31m. If the debt was really reduced to the loan secured on the stadium c£15m, then GSE reduced the debt by an impressive £16m. However, the LoG reduced it by £19m. Those who say that the club was in a mess when Appleby etc took over don't paint the whole picture. The playing squad was a mess before GSE  got here, but their initial input made it far worse. Offield, the finances were already heading in the right direction and GSE, after initially making things worse by trying to fund an immediate bounce back, really brought things under tight control.

In hindsight, I'd say we've been extremely fortunate with our last three owners. The LoG took us from the brink of disaster and stabilised us. GSE then streamlined the club and made the whole thing more professional - and brought in the ever impressive Sam Rush. Mel has subsequently built on the already strong foundations and is making us competitive. 

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