G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 1 minute ago, HantsRam said: Apologies - I didn't intend to patronise. I'm an actuary, part of which is trying to interpret accounts in order to decide whether to invest in something. Bur I'm not an expert in accounting rules. No apologies required, I didn't take the post as patronising at all! I'll save you the hassle...DCFC aren't worth investing in based on their last set of accounts...unless you're a local businessman with a lot of spare money! Link to comment Share on other sites More sharing options...
G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 4 minutes ago, reveldevil said: So it isn't possible the club paid GSE, and Mel repaid the club? Sorry to sound dense! Short answer is no that didn't happen! Won't bore you with an explanation but it definitely did not happen. Link to comment Share on other sites More sharing options...
Rich3478 Posted December 29, 2016 Share Posted December 29, 2016 Does that suggest we lost £40m then?! After the £12m external debt taken away from the £52m investment? Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted December 29, 2016 Share Posted December 29, 2016 17 minutes ago, G STAR RAM said: No apologies required, I didn't take the post as patronising at all! I'll save you the hassle...DCFC aren't worth investing in based on their last set of accounts...unless you're a local businessman with a lot of spare money! Nah mate - strictly institutional. Football clubs not usual investment for pension and insurance funds But I still like to think of myself as being a literate user of accounts so quite enjoy turning the numbers into a narrative. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted December 29, 2016 Share Posted December 29, 2016 11 minutes ago, Rich3478 said: Does that suggest we lost £40m then?! After the £12m external debt taken away from the £52m investment? Not yet. We can't quite tell what's happened to the 52m until we see the 2016 accounts. The suspicion is that 12m was used to extinguish debt, then some to purchase players (so that you replace cash with another asset being the player) and some is just "spent" as an operating loss - hopefully the amount of which is within ffp limits. Link to comment Share on other sites More sharing options...
G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 Just to be clear here, I am going off one stand alone document here on Companies House so do not have full facts, so there may be more to this transaction than meets the eye...there could even be a typo! More will be come clear in March when accounts are filed. I just thought if this transaction had happened someone would already have some inkling about it but I don't recall seeing anything! Link to comment Share on other sites More sharing options...
G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 16 minutes ago, HantsRam said: Not yet. We can't quite tell what's happened to the 52m until we see the 2016 accounts. The suspicion is that 12m was used to extinguish debt, then some to purchase players (so that you replace cash with another asset being the player) and some is just "spent" as an operating loss - hopefully the amount of which is within ffp limits. Done a bit more research... In the last accounts (signed off November 2015) there was a statement to say £22m funding had been received since the year end (June 2015). Therefore external debt at that point would have been £34m. Pure guesswork that the £52m cleared that debt plus circa £18m of losses for last season. I also wonder if the £22m included the redemption of the preference shares mentioned by another poster, as there was a statement in April 2016 which shows that had been redeemed from the Americans. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted December 29, 2016 Share Posted December 29, 2016 11 minutes ago, G STAR RAM said: Done a bit more research... In the last accounts (signed off November 2015) there was a statement to say £22m funding had been received since the year end (June 2015). Therefore external debt at that point would have been £34m. Pure guesswork that the £52m cleared that debt plus circa £18m of losses for last season. I also wonder if the £22m included the redemption of the preference shares mentioned by another poster, as there was a statement in April 2016 which shows that had been redeemed from the Americans. Sounds entirely plausible - 2015 was quite a big spending transfer window also and we bought Johnson and Butterfield late so that might also have required funding not originally foreseen. Link to comment Share on other sites More sharing options...
G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 4 minutes ago, HantsRam said: Sounds entirely plausible - 2015 was quite a big spending transfer window also and we bought Johnson and Butterfield late so that might also have required funding not originally foreseen. £22m spent in that window with payments spread over 4 years Link to comment Share on other sites More sharing options...
Stedcfc Posted December 29, 2016 Share Posted December 29, 2016 The document itself only tells us that MM has made a capital injection into DCFC of £52m. It's all been done as equity, rather than debt. What that money is used for is probably a number of things. Academy investment, player investment, covering past and future operating losses (players wages!) etc. Still great to see the money going in as equity rather than debt. Link to comment Share on other sites More sharing options...
G STAR RAM Posted December 29, 2016 Author Share Posted December 29, 2016 14 minutes ago, Stedcfc said: The document itself only tells us that MM has made a capital injection into DCFC of £52m. It's all been done as equity, rather than debt. What that money is used for is probably a number of things. Academy investment, player investment, covering past and future operating losses (players wages!) etc. Still great to see the money going in as equity rather than debt. We know that net debt at June 2015 was £12m, so £52m sounds like a huge amount of money to be putting in! Probably best not to make assumptions until I have seen the accounts! Link to comment Share on other sites More sharing options...
Alph Posted December 29, 2016 Share Posted December 29, 2016 5 hours ago, G STAR RAM said: Not posted since April. Used to message him from time to time off the forum to make sure we were not boring everyone on here! 5 hours ago, Gritters said: His last post was something about remember me for this. Then went on to explain what GSE and the previous regime did to get the club finances back in a good shape. All double Dutch to me but if he was happy so was I. We've never heard from him since. I hope he's ok. Well that is a proper depressing thought. It's **** Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.