17/18 Financial Results

[i-Ram]

38 minutes ago, ossieram said:

Might aswell be written in Latin as far as a dumb git like me is concerned.

Basically Ossie, the accounts state if we hadn’t done a ‘clever’ bit of accounting to produce an exceptional £40m revaluation/transfer of our stadium, we would have lost £40m in 12 months.

A good few on here might want to acknowledge now that Matt Lawton at the Times wasn’t  too far wrong with his £3m per month loss figure. In fact he understated it.  Madness.

Be interesting to know the breakdown on those £16m administration fees. Might have to forge myself a Pitmans certificate and apply for a secretarial position at Pride Park.

[AdamRam]

1 minute ago, David said:

What’s your thoughts on the stadium lease fee? I know you’re not a fan of the idea, but looks fairly reasonable.

A quick Google shows West Ham pay £2.5m for their lease which apparently doesn’t cover the cost of games, that’s London for you though.

For what my view is worth, looks a good deal to me, my concern was that a peppercorn deal could open up further FFP questions but it appears they have addressed that. They also appear to make reference that the use of the stadium is covered going forward which was good to see.

I also think West Ham have got a good deal, 2.5m for a stadium you didn't build or fund, wow, but that’s for another day. 

Would like to know if it’s possible to understand our FFP position from the accounts, and I’m hoping someone may be able to help on that, however given the club have said we are within it, if not then it’s not the end of the world.

[R@M]

11 hours ago, Inglorius said:

Am disappointed but not surprised that more posters haven't commented on the post by @i-Ram 

Morris is a financial whizz by applying an accounting ruse to sell our ground and avoid a loss of £25 million and he should be applauded for that 

Let's go over that figure again as it deserves a second inspection - £25 million loss. That's some number. Hardly what you'd expect to be seeing from an owner whose meant to be the custodian of the club's finances but find's it easier to slopy shoulder the blame onto staff no longer working in the club. 

I'd call that gross financial mis management or fiduciary negligence to paraphrase the same person. Yet we are seeing the accolades and plaudits being handed out on here for such an amazing masterstroke.

I'm not even going to try and be an apologist, that's rank mismanagement by the owner and he deserves to be called out on the matter and he deserves all the criticism coming his way. The fact that this is next to nothing is even more amazing given that he has got the club into a huge financial hole that he has had to circumnavigate by applying an accounting trick.

Very poor all round and needs to be viewed as such.

Can you please show me where the £25 million years loss is explained, or at least officially recognised? All I can find is a note on Companies House that states the full report figures will be available in 5 days.

Without this information, if I may be extremely presumptive born out of ignorance, is it not possible the operating loss was actually within FFP?  Is it not possible the sale still needed to be reviewed by the FL to confirm it is included in FFP figures prior to the forums? Is it possible the sale payments have been split over 2, 3, or 4 years? 

I think before very poor judgements are made, the whole situation should be viewed. 

 

[Rev]

9 minutes ago, R@M said:

Can you please show me where the £25 million years loss is explained, or at least officially recognised? All I can find is a note on Companies House that states the full report figures will be available in 5 days.

Without this information, if I may be extremely presumptive born out of ignorance, is it not possible the operating loss was actually within FFP?  Is it not possible the sale still needed to be reviewed by the FL to confirm it is included in FFP figures prior to the forums? Is it possible the sale payments have been split over 2, 3, or 4 years? 

I think before very poor judgements are made, the whole situation should be viewed. 

https://beta.companieshouse.gov.uk/company/09740438/filing-history

Accounts are there, stadium paid in full.

[Rev]

2 hours ago, Ghost of Clough said:

 

17/18 accounts show wages at about £46.8m... this’ll be slashed down to c£30m when the season ends

How do you arrive at the above figure?

I make it 9 players out of contract, so to save that much would mean average pay of £36k p/w, per player.

Surely that's not correct?

[Rev]

1 hour ago, David said:

What’s your thoughts on the stadium lease fee? I know you’re not a fan of the idea, but looks fairly reasonable.

A quick Google shows West Ham pay £2.5m for their lease which apparently doesn’t cover the cost of games, that’s London for you though.

West Ham's stadium cost £600m of public money, Pride Park cost £15m of Lionel Pickering's.

You're comparing apples with oranges.

I'd say our just over a £1m a year lease on a 20yr deal is fair enough, mind.

 

[Day]

Just now, reveldevil said:

West Ham's stadium cost £600m of public money, Pride Park cost £15m of Lionel Pickering's.

You're comparing apples with oranges.

I'd say our just over a £1m a year lease on a 20yr deal is fair enough, mind.

£30m wasn’t it?

[ram59]

4 minutes ago, reveldevil said:

How do you arrive at the above figure?

I make it 9 players out of contract, so to save that much would mean average pay of £36k p/w, per player.

Surely that's not correct?

I think that's a prediction for next season and so includes players who left last season also, Bent and Shackell etc. 

[northantsram]

5 minutes ago, reveldevil said:

West Ham's stadium cost £600m of public money, Pride Park cost £15m of Lionel Pickering's.

You're comparing apples with oranges.

I'd say our just over a £1m a year lease on a 20yr deal is fair enough, mind.

 

Its 19k a week, there will be players on more a week than that so i think thats very fair.

[Rev]

2 minutes ago, David said:

£30m wasn’t it?

I don't honestly know, for some reason I had £15m in my mind!

Either way, it's not even in the same ballpark as the London Stadium, which is double the capacity in an area where land is worth far more.

I'm not knocking the deal btw, just pointing out it's not in any way comparable.

[Rev]

3 minutes ago, northantsram said:

Its 19k a week, there will be players on more a week than that so i think thats very fair.

So you agree with my point, that it's a fair rent?

[ram59]

3 hours ago, HantsRam said:

haven't followed this in detail, but is that real, or did the transaction write off debts owed by DCFC?

I was just trying to prove a point about the flaws in ffp and was assuming that ourselves and another team starting at the same level, ie £0 bank balance, would be affected by ffp, although we would have become cash rich and in no danger. 

[Rev]

I thought the PBSE was quite informative, at least in how we value players as assets.

We realised actual cash of £11,705,300 on players given a predicted value of £12,819,777.

This is less than 10% off, and shows to me at least that we are making a decent fist of assigning a players true value in the books, and not massaging the figures artificially high as a rule bender.

Hopefully the loss of players at the end of their contract this coming summer won't have quite the impact I suspected it might.

 

[Day]

9 minutes ago, reveldevil said:

I don't honestly know, for some reason I had £15m in my mind!

Either way, it's not even in the same ballpark as the London Stadium, which is double the capacity in an area where land is worth far more.

I'm not knocking the deal btw, just pointing out it's not in any way comparable.

It was only one off my head where it would be easy to find the information given the publicity it had.

I’ve done some digging though. Reading who have recently moved their stadium to a new company under the same owners.

[Ghost of Clough]

36 minutes ago, reveldevil said:

How do you arrive at the above figure?

I make it 9 players out of contract, so to save that much would mean average pay of £36k p/w, per player.

Surely that's not correct?

Sold/released already: Baird, Bent, Hanson, Jerome, Ledley, Shackell, Weimann, Vydra

Contract expiring: Blackman, Bryson, Butterfield, Elsnik, Johnson, Nugent, Olsson, Pearce, Roos

Incomings: Evans, Holmes, Jozefzoon, Malone, Marriott, Waghorn

 

I may have been a bit optimistic with £16.8m being wiped off the wage bill ?

[Van der MoodHoover]

23 minutes ago, ram59 said:

I was just trying to prove a point about the flaws in ffp and was assuming that ourselves and another team starting at the same level, ie £0 bank balance, would be affected by ffp, although we would have become cash rich and in no danger. 

Ok ?

[Rev]

33 minutes ago, David said:

It was only one off my head where it would be easy to find the information given the publicity it had.

I’ve done some digging though. Reading who have recently moved their stadium to a new company under the same owners.

Seeing as the one year figure and five year figures are pretty similar to our own, I'd say this is more reasonable comparison, with us signing a longer lease.

I'd guess there must be a market rent stipulation applied too, to avoid gaming the system.

 

[Turnstile]

4 hours ago, B4ev6is said:

Hopeful roos sign new contract soon.

While I see carson more likely to leave in the summer.

Why would he leave? he might as well sit on his arse like Anya and draw his exorbitant salary.Can you blame him?

[B4ev6is]

Because he will become our number 1 keeper thats why

[Boycie]

Off topic!