From what I gather it's up until the end of June 2012, hence why expenditure is so high. I'd imagine our squad wage was alot lower over the summer, although with all the loans PJ and Mick have got in since I'd imagine wages are considerably higher again!!
That is my understanding, I am sure the deal is done they just need to wait for the date to be put on rather than signatures.
Deep ****: From the EADT article: “The directors have concluded the need for, and have requested, ongoing financial support from its principal shareholder MEIL. “Such ongoing support, for at least 12 months from the date of these financial statements, has been given. This will allow the company and its subsidiary undertakings to continue in operational existence and meet their liabilities as they fall due for payment. “Accordingly, the directors consider it appropriate to continue to prepare these accounts on a going concern basis.” “ Going concern is one of the fundamental principles of preparing financial accounts (that’s why assets like the stadium don’t appear at their saleable value and so on), so the mere fact they mention this is ominous. I don’t like the sound of the training ground being sold to the ME Group for 1.3M either – it means our debt to the ME Group is 1.3M lower than it otherwise would be, but 1.3M??? The ME debt standing at 79M must mean he’s (or rather the multi-national that is the ME Group) has subsidised us to the tune of 45M over the last six years? Or have I got that wrong? ME surely cannot “pull the plug” or his group will get next to nowt; only promotion (with a fair few seasons up there – yo-yoing or not) or a fabulously rich buyer prepared to pay the ME Group off will see any sort of return. I was pondering whether the debt to the ME Group could be converted to equity, but share issues have to follow a set legal process and would also (unless I’ve misunderstood the legalities of the ME takeover) extend ME’s shareholding to over 87.5%, which would doubtless prompt even more wild conspiracy theories. Also, share capital is effectively money owed by the company to the owner, c/f inter-company loans which is money owed to the loaner only without the part-ownership of the company.
Don't agree with paying Clegg close to £200k but bear in mind we were paying Keane and are paying McCarthy 10 times that so really it's a drop in the ocean.
Can I just clarify a little on what Jonah says... it's called accounting. You limit your liabilities but also you have to show viability or 'going concern' going forward. George Osborne has had Whitehall pen pushers fudging the public purse accounts to make the national debt figures look slightly more reasonable and all that's going on with the supposed sale of the training ground is making the figures fit. If it weren't for Evans Town would have gone bust some time ago. If he walks away he'll make huge losses - he may choose to cut his losses, but it's nothing for us to be concerned about.
I know it’s called “accounting” (!) and I described what the going concern concept was within the field of accountancy. Published accounts are merely a “true and fair” view of revenue and expenditure during the year (p&l) and a snapshot of the assets and liabilities (balance sheet). The “going concern” you’re talking about is operational liquidity the banks might be interested in. Unless it’s a recent thing, you rarely see a company trumpet that they’re just about capable of carrying on when puclished accounts are released. They just release them and the going concern notion is taken as read, as is the assumptions they've been prepared on the accruals basis and the prudence concept. But as you sort of mention is does highlight the horrific extent to which we’re dependant on the MEG. If the 1.3M sale of the training ground was to “make the figures fit” they’d have had to sell a site more than that to knock out the huge inter-company debt – this 1.3M could otherwise just have been added to that. Much of our operations seem to be funded this way. Edit: Just had a butchers at the accounts and that EADT quote on liguididty was just mentioning a note in the preliminary directors report. Standard stuff. Nothing anything had explicitly felt the need to say.
Two quick points… 1. The annual figures will include all these players we’ve paid off – Bullard, Delaney and many more. So the wage costs will look very bad this year, even though the EADT journos assure us the actual monthly wage bill is much lower than it was. So, next year (unless ME lets MM go completely mad in the transfer market – unlikely) that aspect will be much better. 2. Last year the debt (most is to the ME Group – inter company) was nasty, but until we’re in the Premier League we won’t be in a position to start paying that off, so even when things are reasonably under control that debt will continue to rise. After ME took over the following appeared in the Guardian: Xxx “Evans's MEI has also bought the major lenders' debts, which had risen to £32m. Barclays are understood to have settled for just a fifth of the money owed to them and Norwich Union are reported to have accepted a similarly reduced sum although this has not been confirmed. Certainly Evans has paid the institutions substantially less than the full £32m, but the club nevertheless still owes it all, now to MEI, with interest at over 7%, £2.24m a year. If his £12m investment is spent wisely by Magilton and Ipswich have the wherewithal, pluck and luck to win promotion, Evans could be paid £32m, plus the regular return on his preference shares, and own a Premier League club worth a great deal more than he paid for it. "Marcus Evans was attracted because Ipswich is a community club and he supports the club's values, but clearly it is a business," Sheepshanks acknowledges. "He does stand to make a huge profit, but the good news for our supporters is that his interests are aligned with the club. He will not make that profit until the club can pay it, and that means making it to the Premier League. He has bought Ipswich Town because he wants to own a Premier League club, and all the benefits which go with it." “ xxx On promotion to the Prem’, I don’t think ME was counting on getting his 32M plus getting the club to repay upwards of 40M inter company debt, but that’s the situation he’s in. There’s no obvious reason to do anything but stay and get us up, and for that to happen the debt will have to go up some more.
I think we've had this discussion before. I have no worries at all about Evans making a fortune out of the club. It is a much healthier position to be in than a club that's in trouble. This is the first I'd heard about the debt being settled significantly below the level he's got us in for but if he's managed to negotiate that then fair play to him - and let's not forget he has invested (and risked) a huge amount of cash.
Indeed. For any doom-laden, panic-stricken fears about it all going horribly the shape of a pear, you only have to compare what it costs ME to keep us going and (trying anyway) to challenge for promotion, against what it would cost him to allow it all to go to the wall, as some seem to think is inevitable.
I stand corrected KPR! More than I fetch as a Senior now too - I just cant imagine what these guys do with £194k a year...well, I can. When I was working full time, I was happy on £30-£40k which I felt lucky to have as I also much enjoyed my project work.
I've read in the last few days that Major and Thatcher have had expenses from the public purse of £500k each since 2006 - expenses, not including salary. Blair has had nearly £300k since 2007. It was a fun set up by Major when he was Prime Minister. Now, i have no problem with these people taking a comfortable pension but in Thatcher's frail state I fail to see what contribution she is still making to the country to warrant still needing a staff and expenses of that magnitude paid for by us. Clegg's salary just underlines that for a priveliged few in this country you don't need to be qualified, be accountable, be performing or be doing anything particularly worthwhile or constructive to be living the high life.
Sign of a good businessman? Buys a debt, settles it for a fraction of the cost but doesn't pass those savings on to us as the original owner of said debt. Nice little earner with the 7% interest he's charging us throw in on top.
