Company profit and loss is a matter of public record, it's not an opinion.
The FFP thread
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Company profit and loss is a matter of public record, it's not an opinion.
I thought we hadn't seen the accounts with the £8m loss. Link pls, too lazy to look.
We have. It's the last period to April 22 that we don't yet know, nor do we know the planned wage budget/projected income for the next 3 years which is where I suspect Acun feels restricted in what he is able to lose/invest.
Aah, thought the £8m was 2022.
With respect to the Bowen money being lumped in to future years, there was an article on Hull Live.
https://www.hulldailymail.co.uk/sport/football/ehab-allam-hull-city-takeover-3872998.amp
Steve Jarvis: “Now that we have sold our most prized asset in Jarrod Bowen and got others who were our big earners off the books, will we see any of the money reinvested back into the squad or will the money be used to negotiate a sale of the club?
Given that none of the Bowen money appears to have offset losses to April 2021, there mist be a rather large profit in 2022.Ehab Allam (Boy Wonder) said:
Either that or Allam pocketed it. TWT when the April 22 accounts come out, no doubt.
K
Kalman
Guest
There needs to be some sort of legislation to prevent club owners from paying themselves dividends from selling club assets.
Why? Fans obviously don't/won't like it but it's a business at the end of the day and owners can pay themselfs divided just like other businesses
Is there any real suggestion they paid themselves over-the-top dividends? They didn't need to as they were raping us on interest.
That was my original view at the time on why they reserved Jarrod's fee, so they could pay themselves it in future years.
There just doesn't appear to have being time to suck it up before they sold though so interested to see where it went.
I don't think they raped us on interest, I think the bigger thing is that fact they kept saying they had never taken a penny etc and that it was all a gift.... If they had just said from the start "we will fund all this but we will be changing interest on the loans" I don't think anyone would have really had a problem...
But let's not open up the Allam bag up again, they have gone, we move forward with hopefully a much better ownership and a much brighter future
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K
Kalman
Guest
That’s the thing I kinda object to. I don’t really like the idea of ‘owning’ a football club as it is a community asset.
But that's the issue, it isn't. It's a business in the entertainment/sport industry unfortunately.
I appreciate that's a very black and white view from me
It's not though is it. Which clubs have been bought up as community assets? Which community can fundraise to buy the sort of player the community itself demands.
Clubs have always been owned, often by dodgy folk, and I can't see that changing.
As only a minority of people in any city support their football club, or rugby union or rugby league club they never will be bought up as community assets. Where is the money to run the club and maintain the stadium coming from? Personally I would put a levy on every resident of Hull and East Riding to help fund the club. And double it for supporters of TWS, Liverpool, Man Utd…Can’t see that flying. And at £200 each a year wouldn’t raise enough. Then people would complain those fans who had moved away weren’t paying towards it so should not have priority for seats, tickets etc…
So these people in the media just pick figures out of thin air
Very surprised Acun did't correct him, but maybe he's happy to play into the notion we're near the ceiling.
You can't accrue in
Profit / Loss is different to what you're talking about. We made the profit from Bowen's sale in the F20 year, but we would have used the cash from it to fund the club the following years (which I assume is what Ehab means), but that doesn't change the fact we lost money in F21 (didn't have income in that year to offset the losses).
It's the same trap some in here are falling into with regards to Acun's spending this year. Expenses =/= losses. In the same way that revenue =/= profit.
Maybe we are, maybe we will be spending to near max over the coming years, but whether we are or aren't, it won't harm him for it to be known that cash is not unlimited - especially coming to the frantic end of the window.
Honestly mate, whilst I do think you're underestimating the wage burden over the lengths of contracts being handed out, I do think it more likely they're just being diligent not to create a headache for future years. Ultimately FFP restricts his initial investment to defined limits. He's talking about expecting to underwrite losses to 10-15m per year which suggests to me he's in with his eyes open.
We can (and have) throw theoreticals around ad nauseum but until the retrospectively published accounts show the base-line facts then it's all speculation. The man who knows is Acun, and he and Tan are it until the accounts get published.
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Until then all we can talk about is what's been published, and what's known (KLP's sale). Which is all I've spoken about. No hypotheticals from me.
My aha moment was just that. Separate the two entities. The business, and, the football club.
Simples. Local authority purchases club and sticks it on council tax for the next 50 years alongside the additional increases for the police, health and social care etc etc. It's all community stuff.