This is exciting stuff. I guess that £15m of that £33m loan is for the training ground development, and swapping their debt for shares shows that the Liebherrs have a lot of confidence in the long-term future of the club. Worth remembering that those accounts are for league one, so our wages are nowhere near 93% of turnover now. My quick and probably flawed maths reveals that with the 70% increase in turnover, the same outlay on wages would account for about 55% of turnover, which is much more sustainable (although of course we have added to that wage bill with new signings). Taking into account the sale of AOC, we are in a very strong financial position indeed, we probably have more money in the bank than most of the premier league clubs at this point!
Indeed These are figures for a championship squad playing in L1 with bonuses on top. Coming second means a lot of bonuses. Same squad, slight rises, a few additions, a major outgoing, increased crowds, mega increase in TV rights (don't forget it isn't just the Sky and BBC, we get money for all those countries that show the other matches which we then watch on stream.) Increased merchandise sales etc. I wouldn't be surprised if our increased turnover for this year (to be announced next ) meant that our player wages to turnover ratio was much closer to the planned UEFA limits, and that is without any 'fake' Etihad stadium' 'sponsorship Next year add to the fact that NA's policy (and rightly so) is to maintain the current squad spirit and strengthen only where needed. No doubt all will be calling for 8 first team additions and saying the squad is not good enough however the best teams (Man U) maintain the backbone year on year whilst on paper their squads look weaker than the pretenders (Man C / Chelsea.) Stability and familiarity is worth much more than a team of superstars So take into account next year the huge increase in world TV money, the full house every week, much more exposure gaining worldwide merchandise sales etc and I could see Saints turning a profit (not including the academy spend.) Good times to come me thinks. And Cortese can up his salary to over £1m with the confidence he is worth every bit of it Don't forget he is in reality an employee so he has to be paid for doing his job.
Those of you who want to understand it, you probably won't unless you go and read a book on debt restructuring. It's really not a complex process and happens quite a lot.
Precisely what is wrong with our country. Do you not want to learn? Go to China, India, Brazil.... they would, given the chance read up on it to develop their knowledge. No wonder we're going to be a third world country in 50 years.
To be honest no i don't want to learn about finance as i have absolutely no interest in it,except knowing my own finances! I learn about things i'm interested in and i can't know everything,which i'm sure you don't either,have you never asked someone about something you know nothing about? or do you know everything there is to know about every subject? I don't know about finance so i asked a legitimate question for someone to answer in a respectful way.As it happens i have now read the interview with the chief finance man of the club and he has put my mind at ease so that's all i was after.We draw a blue line under it and move on.
Yes I have, but didn't expect to be spoon fed an answer. No I don't know everything, that's why I'm continuously reading to develop my own knowledge.
That's upto you if you want to read,fair play but i don't want to.Spoon fed an answer? OMG you're serious? I asked a question about something i have very little knowledge of,i was expecting a answer of yes it's good or no it isn't great but we'll be ok,that would of done for me but instead of that you want me to drive to a library and get a book out and read around a 1000 pages to find out for myself? You may try to come across as more intelligent than other people but let me tell you that would be a pretty stupid thing to do!
Get real Gordon, you don't need any specialist knowledge to know this is good news. I can't remember the last time I read a post by you where you didn't make a big deal out of the fact you work in finance. We're all very impressed but it's getting a bit tiresome.
No, I never said to do that, although it wouldn't be a bad idea. Libraries need more use. I've not made a deal out of working in finance though, have I! All I've said is that if people want to know what it's all about, go read up about it.
Correct me if I’m wrong but basically the following has happened; These reports are for last season in league 1. Over the last two season 2009-2010 and 2010-2011, The Liebherr’s has invested 33million into the club (including paying off the 13 million debt) The Liebherr’s have decided to change their loaned debt of 33mil into equity (shares). This means the Liebherr’s have decided to wipe clean the 33 million. Last year 93% of our overall profit was spent on player and staff wages. About 1.4 million was spent on one off payments. But since June 2011 then the club has recorded a 70% increase in the clubs profit/turnover while in the NPC. This isn’t including the prize money for the final league position. Personally I like to believe that the improvements which are happening at the staplewood have cancelled out the OXO sale. So overall the club has no debt and is in a healthy financial position if we get promoted into the PL. If we did get promoted I would expect to see allot of deadwood being sold and maybe one or two experienced PL player joining the club. The only thing I don’t understand is why you would buy shares in a club you already own. Maybe it’s a sign that the club maybe sold in the near future. Sorry for the poor grammar but I’m really tired.
Converting a loan to equity means that you are increasing the value of the club. The club is now "worth" £33M more than it was prior to this happening. That's a simplified description which might be corrected by someone with a greater understanding of these things but that's how I understand it in the broadest sense.
thanks hotbovril i was talking to a friend earlier and he said the 33 mil lose isnt that bad as it sounds. Theres 13 on debt which would mean we made a lose of 10 mil a year. But he told me that over 60% of that debt was invested into the club and wasn't down to wages. So if my maths is right that only a lose of about 3-4 mil a year when we have players on championship wages when we were in L1. Good times
I suggest you read this then... http://www.ehow.com/how_2067350_be-less-arrogant.html I think it could help wonderfully with your development as a human being. Then after implementing some of these ideas people may actually want to listen to what you have to say because sometimes, personally, when I bother to look past all the vitriol, I think you actually make some good points but good god man you don't know how to sell your point of view.
