Taken as a snapshot from the annual accounts, aren't most championship clubs in **** street. Load up the club with debt and take the gamble that some transfers pay off to sustain the debt or promotion gives a chance to load the club up with more debt.
Most Championship clubs were not debt free three years ago and most Championship clubs have not taken £50m in transfer fee since. The accounts are shocking. Questions need to be asked.
Just a reminder that this thread is about what someone posted on Facebook. It's one person's opinion and no more.
If this is an accurate assessment of the club’s finances, then it suggests one of two things about Acun. Either he or Acun Medya don’t have the financial clout to sustainably fund a football club via injecting equity, or he’s just trying to milk the club for profit and he’s impatient to get his return, hence the obsession with getting to the Prem ASAP.
We have some facts in the accounts, some things that aren't public or aren't quantifiable at all, and it's up to the individual to interpret that picture as they choose. Personally I am acutely aware that this fan base is extremely reactive lately and so I would wait for the interpretation of an unbiased expert on such matters who isn't influenced by emotion, such as that Kieran Maguire who is usually the man on these matters. For example, this person says the club is being run in a totally unsustainable way. That is an opinion, and it relies on contextual information which we don't have. They also say that the finances rely entirely on player sales; I'm no accountant but I would allow for the possibility that in a retrospective set of accounts, we have specifically chosen to spend an amount based on the player sales we know we've made. Perhaps if we hadn't made those sales then we wouldn't have spent so much, in which case it would be wrong to say that we're totally dependent on player sales as if that's a dangerous and unsustainable thing. Ultimately, we don't know enough to come to any sort of conclusion, football is a nonsensical industry financially and our choice is to trust or not the trust the people in charge. I think you are prudent to not trust Acun unconditionally, and football club owners in general. But I also think he's done nothing to deserve our distrust in a financial sense.
The owner is having to pump money in every week to keep it afloat, we are hugely in debt and our wage bill is approx 140% of our revenue and an operating loss over £26m. Feel free to explain how you feel that club being run in an unsustainable way isn't Correct
Wasn't that explained in the write up it that Acun Medya is passing on the commercial interest they have to pay to borrow the finance to fund the club? How is he making money?
It is unsustainable, but so is most of the championship, so how are we any different to say, a middlesboro?
You don’t ever covert debt to equity, unless it’s completely unavoidable, as it leaves you unable to get that money back in the future without ending up with a massive tax bill.
With all due respect, I honestly couldn't care less about other clubs finances or if they're run sustainability or not. They won't bail us out if we get into trouble or suffer points deductions etc. We are being run unsustainably, that isn't an opinion as PLT claimed. It's a fact and that's all I'm bothered about, not other clubs
The other thing not being considered is the value of the asset more or less covers the amount of debt. 65m debt Vs 63.5m estimated value according to Transfermarkt.
But it is an inherent problem with the championship in general as opposed to something specific to City, and the debt doesn't appear to be significantly more than the value of the club as an asset. I'm not too concerned that we're carrying an unsustainable level of negative equity. Theoretically the debt is paid when the club is sold as long as it's not allowed to spiral.
Well, that’s the thing. No businessman should ever purchase a football club with the intention of making money. Owning a football club is a sinkhole and every owner should be prepared to lose millions. Really, they should consider themselves custodians and benefactors rather than owners. For all his faults, that’s exactly how Abramovich was when he owned Chelsea. Marinakis also converted debt to equity at Forest.
TBF it's very easy to be like that when you're worth the kind of money he is/was, plus the constant stream of money coming into him personally hour after hour
