City's financial position - continued

[BluefromBridgend]

Other than a little reference from Robbie on the Championship thread, I'm surprised no one else has brought this up.

All told the club's 2022 annual accounts make dismal reading. Another huge loss, VT having to put in more money (some capitalised) plus someone else and an onward downward spiral.

Some economies made to mitigate the position but I'm not sure how much more can be stripped out going forward.

Also how will this impact on our FFP position?

Enjoy the read.

https://www.walesonline.co.uk/sport...kCopy&utm_medium=social&utm_campaign=sharebar

 

[Oldsparkey]

I think the £39M accumulated "3 year loss limit" has been suspended for the moment due to the effects of the covid pandemic. The FA/EFL are focusing more on club's financial irregularities, non compliance with agreed fiscal plans and things like breach of agreements and non payment of wages.

Derby, Reading and Brum are recent examples of this approach and I suspect there are more to come. Apart from the Sala fallout which is currently affecting us, I believe City have a pretty clean sheet on those fronts.

I also noticed that Ken Choo has gone part time as CEO - wonder what that really means.

 

[irishbluebird]

I also noticed that Ken Choo has gone part time as CEO - wonder what that really means.

Well Choo only works part time with Cardiff and the rest is spent with his luxury car business in London so he shouldn’t be drawing a full salary. I suspect also that Tan had told him that he must contribute to the reducing the debt.

 

[FrankfurterBlue]

It was always going to be difficult reading but I would suggest that is the nadir. The new blood is cheaper and will hopefully keep us up. It's cutting our coat to fit the cloth. Tan is still the man and is still supportive......that's the main thing.

 

[FrankfurterBlue]

We've never been a selling club but I think that is now the way of the future in the Championship. One a year sale would be a big boost. Them down West lived off this for a long time.

 

[Oldsparkey]

We've never been a selling club but I think that is now the way of the future in the Championship. One a year sale would be a big boost. Them down West lived off this for a long time.

Agree with that. One of the biggest problems over recent years has been our inability to support the annual accounts with decent player sales income - particularly when in the Championship.

From memory the best we've achieved was the fortuitous £8M for Zahore from Brom a few years back, but more recently other than that, Keiffer Moore's departure to Bournemouth has been the only significant sum - around £3.5M I think.

The likes of Swansea and Bristol City have recouped/generated cash from £20M+ players like Dan James, Ollie Mc turd and Adam Webster that have had a huge impact on their annual P&L figures.

The jacks also had a good record in the Prem with big bucks receieved for the likes of Sigurdsson, Bony and Ayew.

 

[ninian opinion]

Dalman’s company taking 9% on his loan

 

[BluefromBridgend]

Dalman’s company taking 9% on his loan

Yes, but could we get it anywhere else?

Anyway 1989/90 time base rate went to 18%. That caused a few ripples and gives current rates a bit of context.

I wonder if it is fixed or will drop when base rate reduces in future months - as predicted?

 

[Oldsparkey]

Yes, but could we get it anywhere else?

Anyway 1989/90 time base rate went to 18%. That caused a few ripples and gives current rates a bit of context.

I wonder if it is fixed or will drop when base rate reduces in future months - as predicted?

Doubt that very much Bluey. The Dalman (Tormen) loans date back before the year end of the accounts which was May 2022 and were set at 9%. BOE base rate at that time were less than 1% - credit was relatively cheap.

I'd expect that to be an appropriate fixed risk rate, particularly if Dalman has no legal charge and is therefore unsecured. He may hold second charges but Tan holds all the cards on that score and in a failed business situation, Dalman would suffer - hence the agreed high interest rate.

 

[BluefromBridgend]

Doubt that very much Bluey. The Dalman (Tormen) loans date back before the year end of the accounts which was May 2022 and were set at 9%. BOE base rate at that time were less than 1% - credit was relatively cheap.

I'd expect that to be an appropriate fixed risk rate, particularly if Dalman has no legal charge and is therefore unsecured. He may hold second charges but Tan holds all the cards on that score and in a failed business situation, Dalman would suffer - hence the agreed high interest rate.

Fair points Sparks and what we have is probably best summed up by the old adage, beggars can't be choosers.