G STAR RAM Posted January 9, 2016 Share Posted January 9, 2016 55 minutes ago, CornwallRam said: 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. I may be wrong here but wasn't some of the debt 'parked' by LoG? Regardless, yes they have contributed to the trajectory we are now on. With LoG it didn't always feel as though football was the primary objective to me, but with Mel alone things seem to be different Link to comment Share on other sites More sharing options...
CornwallRam Posted January 9, 2016 Share Posted January 9, 2016 1 minute ago, G STAR RAM said: I may be wrong here but wasn't some of the debt 'parked' by LoG? Regardless, yes they have contributed to the trajectory we are now on. With LoG it didn't always feel as though football was the primary objective to me, but with Mel alone things seem to be different I believe that it was parked, but became active again when we were promoted. It was included in the overall debt calculations, which actually makes the LoG's achievement slightly more impressive. Link to comment Share on other sites More sharing options...
Uptherams Posted January 9, 2016 Share Posted January 9, 2016 4 hours 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. I would assume that payments are staggered across several installments. If we failed to make the PL this season I wouldn't expect to spend much the following two seasons. Link to comment Share on other sites More sharing options...
Uptherams Posted January 9, 2016 Share Posted January 9, 2016 2 hours ago, Gritters said: 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. The payments from the PL deals to the Championship are increasing significantly. Off the top of my head something like an extra £2.5m or more. Which is why I think we saw not only silly money from us but many clubs bidding in the summer. Link to comment Share on other sites More sharing options...
davenportram Posted January 9, 2016 Author Share Posted January 9, 2016 15 minutes ago, Uptherams said: I would assume that payments are staggered across several installments. If we failed to make the PL this season I wouldn't expect to spend much the following two seasons. don't forget that any payments from old transfers that are no longer being paid can be used without increasing FFP liability. Link to comment Share on other sites More sharing options...
admira Posted January 9, 2016 Share Posted January 9, 2016 Martin Lewis always advises to clear your debts as interest is payable on them before you start saving. £6.5m is roughly what Bradley cost so you'd imagine MM would have just paid the mortgage off to stop leaking interest. Sure there is a good reason for it but seems a bit odd that he is splashing the cash when he could go debt free. Link to comment Share on other sites More sharing options...
Herdwick Ram Posted January 9, 2016 Share Posted January 9, 2016 Just a few points ... I seem to remember the stadium was in the books at c£15m, with an interest only mortgage at a very low interest rate. When MM bought the club it would have been valued at the current market rate which I'm guessing is much higher, so it makes sense to keep the mortgage on if you can get a higher return for your cash elsewhere. I believe the Coop did indeed "park" some debt when the LoG, took over - but as this wasn't repaid, so effectively was written off ... vaguely remember reading somewhere that the bank took a massive hit on it. Also, you need to distinguish between cash and profit/loss for FFP. You actually buy a players registration - so say you pay £3m and give him a 3 year contract you amortise that at £1m/year through the profit & loss account. The way the cash payments are staged are irrelevant. So just ball park and very simplistically, say we spent £21m on payers with three year contracts, that's £7m a year. Previous losses are c£6m plus the £7m = £13m , which is the new FFP limit. Obviously, you also need to cover the additional wages etc - but hopefully there's other revenue streams for this. Link to comment Share on other sites More sharing options...
unclej Posted January 9, 2016 Share Posted January 9, 2016 7 hours ago, Srg said: Bet it's that ******* Greggs. Knew we should have been higher class and gone for Birds. Why is Greggs never open on match days? Link to comment Share on other sites More sharing options...
sage Posted January 9, 2016 Share Posted January 9, 2016 11 minutes ago, unclej said: Why is Greggs never open on match days? So it doesn't compete against Derby's food kiosks Link to comment Share on other sites More sharing options...
davenportram Posted January 9, 2016 Author Share Posted January 9, 2016 and the shop isn't big enough for the potential amount of customers. It would be chaos. Link to comment Share on other sites More sharing options...
G STAR RAM Posted January 9, 2016 Share Posted January 9, 2016 3 hours ago, admira said: Martin Lewis always advises to clear your debts as interest is payable on them before you start saving. £6.5m is roughly what Bradley cost so you'd imagine MM would have just paid the mortgage off to stop leaking interest. Sure there is a good reason for it but seems a bit odd that he is splashing the cash when he could go debt free. I think Martin Lewis' advice is aimed at individuals rather than companies. Are you suggesting that MM should have cleared the mortgage rather than buying Bradley? Link to comment Share on other sites More sharing options...
Rampage Posted January 9, 2016 Share Posted January 9, 2016 Double page spread today in Daily Mail on Derby County made interesting reading. I assume it has been mentioned on here (have not read all the posts yet). Mel will have cracked out a bit over £100 million after spending the upcoming £12 million on the Academy. Not clear who owns the Stadium but £6.6 million is owed and Mel has big chunk of ownership of the stadium. Link to comment Share on other sites More sharing options...
Wolfie20 Posted January 9, 2016 Share Posted January 9, 2016 2 hours ago, G STAR RAM said: I think Martin Lewis' advice is aimed at individuals rather than companies. Are you suggesting that MM should have cleared the mortgage rather than buying Bradley? Only if Martin Lewis says it's ok Link to comment Share on other sites More sharing options...
Rampage Posted January 9, 2016 Share Posted January 9, 2016 Mel may not own the whole stadium. Link to comment Share on other sites More sharing options...
Chris Mills Posted January 9, 2016 Share Posted January 9, 2016 11 hours ago, Daveo said: @ramblur What happened to the chap that used to come on here and seemed to know everything about the club finances? Talked a load of gobbledygook that no one understood. Forgot his name now. Link to comment Share on other sites More sharing options...
R@M Posted January 9, 2016 Share Posted January 9, 2016 Just to add a bit of debt management knowledge ( and speculation) to the discussion......the agreement with the coop, that involved writing off a huge chunk of the debt, would likely have included a zero ( or near ) interest rate. This would mean that The Amazing Mel could have already theoretically paid off the debt by putting money aside and actually making money on the interest on that balance, therefore increasing the Club's income. Link to comment Share on other sites More sharing options...
sage Posted January 9, 2016 Share Posted January 9, 2016 2 minutes ago, Chris Mills said: What happened to the chap that used to come on here and seemed to know everything about the club finances? Talked a load of gobbledygook that no one understood. Forgot his name now. Ramblur Link to comment Share on other sites More sharing options...
Chris Mills Posted January 9, 2016 Share Posted January 9, 2016 1 minute ago, sage said: Ramblur Ah was it, didn't ring a bell. Whats happened to him? Not logged on since September. Link to comment Share on other sites More sharing options...
sage Posted January 9, 2016 Share Posted January 9, 2016 Just now, Chris Mills said: Ah was it, didn't ring a bell. Whats happened to him? Not logged on since September. He was pretty ill. I hope he was just bored of the puns and nothing more serious. Link to comment Share on other sites More sharing options...
Chris Mills Posted January 9, 2016 Share Posted January 9, 2016 9 minutes ago, sage said: He was pretty ill. I hope he was just bored of the puns and nothing more serious. Hopefully he will return soon! Link to comment Share on other sites More sharing options...
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