Good Morning Everyone, Let's talk LUFC finances.... 1. Things are much improved over the last financial period The last time Leeds United submitted financial records for the period ending June 30 2014, the club was hit by a Football League transfer embargo with losses of £22.9m – above the £6m ‘deviation’ permitted under the Football League’s Financial Fair Play (FFP) rules. In this term’s submission, the losses have dropped from £22.9m for the financial period ending 2014 to just a loss of £2m for the last set of records that have just been submitted. As the club point out, the careful management of “its operating cost base” has allowed Leeds United to make a 91% reduction in losses made. 2. Things seem to be looking up in other areas When the 2014 set of financial records were submitted, the ones with the overall £22.9m losses on them, Leeds United had liabilities totalling £13.5m. This time around has seen this figure wiped out and the currently submitted records showed that Leeds United actually had net assets of £1m; this representing a turnaround of £14.5m. 3. Do Leeds United owe a debt towards Massimo Cellino Love him or loathe him, the current owner of Leeds United has sunk money into Elland Road and the submitted accounts are testament to that. These show that Eleonora Immobiliare SpA, who are the parent company of Eleonora Sport Limited, have injected capital to the amount of £42.96m into Leeds United during their involvement with Leeds United. Massimo Cellino himself told the club website that it was a club effort that resulted in the massively different set of results submitted for the year ending June 30 2015. Cellino gave praise saying, “I would like to thank the senior management team and all of our employees for their hard work and effort during this difficult period to help achieve these improvements in the business performance of the club. “The accounts illustrate the commitment that has been made to resolve the financial issues which have surrounded Leeds United Football Club. The club is now on a stable financial footing for the first time in many years.
Can someone who genuinely understands this account summary explain to me the status of the £46.96 mill injected by elonora sports. Put simply, is it as I understand it, a loan that has to be paid back? If yes, is their an interest rate attached to the loan? If yes, what is it?
Morning all... Accounts look good on paper, I am no expert but I dare say the restructuring of the loan with GFH and the transfer fee of Ross had something to do with it? We had losses of 22.9m that is down to 2m yet Eleonora have pumped in nearly 43m? It doesn't make sense to me... All cleverly worded and structured to avoid another embargo? No mention of future pending court costs, no shirt sponsor money coming in, lower gates, the figures don't match up, do they? Cellino is happy with them, he has said now is the time to improve the quality on the pitch, let's see...
Yesterday Phil Hay said the Ross money wasn't mentioned so not used in these accounts. That money was obviously taken out of the club in either a bates type invoice between the holding company and the club, or used in financing player trading. Either way I think these are the best accounts/results the club have posted in a dozen years and Cellino must be applauded. Steve Evans in his presser the other night said there would be some fantastic news coming out of the club shortly regarding finances, and we all assumed Parkin was investing. I think its these results so love him or hate him he has done what he promised and giving him the benefit of the doubt regarding ER and players, I think GFH have held him back because they would have profited from his investment without doing much. Think we need to give him this summer to finish what he started regarding building the team for next season. However he may have done it to get it ready for a sale as he's had enough of being slagged off. Understandable as I'v slagged him too
How on earth is it possible to believe a word convicted fraudster Cellino and his cohorts say. I hope you are right, but am convinced you are not.
Glory we won't know full details until full results are made public which should be in a few days. But I imagine the 42m is a mixture of loan and capital investment, since day 1. E.g. 6m was transferred to capital in this year. When full results are published you should also be able to see how much interest is paid. It will come under related party transactions. Some other points raised e.g. Ross money. I saw the YEP article yesterday saying the Ross money wasn't included and couldn't believe such poor journalism. It has to be included and it will come under player trading. Btw these accounts are audited
In regards to full results being made public in a few days.... Why not wait till then? Call me cynical but does Cellino want to highlight a few positive points hoping we don't zoom in and focus on what is really going on when the full set are released.
http://www.yorkshireeveningpost.co....f-a-lack-of-front-line-action-evans-1-7747081 Evans is sounding more out of touch every week. Two main reasons attendances are down. 1. Evans has got us playing the most boring football I have ever seen, we are tedious to watch and never entertain. 2. The vindictive eytie fraudster ripping the fans off and treating us with contempt. Cat A games that arnt, pie tax. Segregating our own support. Blokes just taking the piss. Even with a ****e league position, if we looked like we were making progress people would still be going.
Chipster you could well be correct mate and I went over the wall a few months ago and joined you. However after studying the accounts for years every time FSF and Bates released them, I see a massive difference. Bates always posted a positive spin but on looking deeper the true facts were we were posting a loss every year because he included player sales. So he sold our best to bolster his books on paper but taking out player sales saw loss after loss, and always a load of invoices between his offshore shell companies for consultancy to the club, which milked us every year. This set of accounts is hugely different, however Cellino could be cleverer than Bates (Not hard) and ripping us off more politely, but I'm open to anyone who can prove it.
All companies with a turnover of more than 10m have to be independently audited, by law, and the accounts can't be published until they are audited. There will have been a team of auditors at the club for 2-3 weeks. That is assuming yesterday's statement is extracts from the final accounts. The fl may do additional work later for stuff like ffp, I don't know, but assuming yesterday's figures come from the actual final accounts then they will have been independently audited
Last set of accounts you had £22M of loses due to GFH charging you £1.5M per month in fees. If you take that £18M off of the bottom line then you only made a £4M loss. Compare that to this years £2M loss and factor in the reduced wages & sale of McCormack, then you have over £10M that seems to be unaccounted for - and it hasn't been used to pat Elanora as their debt went up by another £13M (From £30M in 2012/13 to £42.9M in 2013/14). These accounts have been submitted to Companies House so anyone can access them for online for £10. Key things you need to look out for once available - debt to GFH, debt to Cellino & admin costs!!
At risk of even more grief from happy clappys and waverers I share your understanding.... The devil will be in the small print. Smoke and mirrors but our financial position isn't any better than last year. No progress on or off the field.
http://m.yorkshireeveningpost.co.uk...ntil-may-simply-isn-t-an-option-hay-1-7746376 Makes sorrowful reading.. Of the backroom team put together last summer, only goalkeeping coach Richard Hartis is still in the building. Stuart Hayton, the club secretary, is the other surviving member of a deliberate, and briefly encouraging, attempt to give Leeds some managerial framework before this season began. He rarely mentions it but Steve Evans still wants for a first-team coach, four months after taking Rosler’s job. Leeds have drifted from an effort to thrive to an effort to survive; back to a life of making do.
Cellinos business history is littered with this hire and fire cycle. Next we can look forward to him telling us for the third time that he didn't understand English football, will step back and let football people get on with it. Six months later he will have sacked them all and will be doing everything from cutting the grass to picking the team..... Again. It's like putting a five year old in charge of the sweetie shop. Can't help himself.
