Clubs debt rises to £110 million!

[Sluffy]

Seems we lost a staggering £26 million last year (It was a loss of £35 million the year before that!).

I've not had a lot of free time recently so I can't really study the current accounts as I would like but it seems the club is very worried about relegation and says this -

"The primary risk, in the core activity of football, is related to the uncertainty of on-the field results. Ongoing investment in the playing squad aims to reduce this performance risk but the Board acknowledges that the level of this investment must be managed within the Club’s financial constraints".

So expect us to be buying in January - but on a limited budget!

Seems Eddie Davies is good for almost £100 million of the debt but the worry is how we can afford any more of it - I guess Mr Davies is maxed out on what he can pump into the club?

The clubs account for last season are here -

http://www.bwfc.co.uk/staticFiles/5c/92/0,,1004~168540,00.pdf

[Wiggy]

Perhaps we should look for another invester as well as Eddie.

[pfk]

Yes I can see them just queuing up to invest in a club which bleeds upwards of £25m per year and is heading straight for the Championship.

[DaveBWFC]

When we got promoted to the premier league we had a debt of something like £35 million. Everyone said the debt would be wiped out with the money we'd be getting for being in the premier. That didn't quite happen did it.

[Dunkels King]

This part of the accounts had me laughing.....

The directors estimate the current value of the playing squad to
be approximately £61,500,000 (2010: £64,050,000).

In which case, sell everyone and start again !

Other interesting items, one director was paid 494,000 in the financial year, excluding his pension contributions etc. Total wages paid (including admin staff etc) came to nearly 50 million.

Can't see us lasting long if we get relegated to be honest. How has the debt spiralled so much. I remember it only being around 20 million when we first moved to the Reebok.

[Ad85]

http://t.co/HW1ojeTE

http://t.co/HBxDundz

Interesting reads, the second link is from 4 years ago so u may of already seen but kind of relates to the firsts.

[Natasha Whittam]

This part of the accounts had me laughing.....

The directors estimate the current value of the playing squad to
be approximately £61,500,000 (2010: £64,050,000).

In which case, sell everyone and start again !

Other interesting items, one director was paid 494,000 in the financial year, excluding his pension contributions etc. Total wages paid (including admin staff etc) came to nearly 50 million.

When you put it like that this club deserves to go bust. Fcuking £500k to a director is fcuking laughable when we're in this much shite.

[Le God]

What is Gartside paid? Coyle? Do they release that or?

thats another positive about the American systems these contracts are published - no hidden clauses which allow tossers like Carlos Tevez to pocket 300k a week with "smile bonus" and "clean socks bonus"

utter cretins.

[Outpost]

When we got promoted to the premier league we had a debt of something like £35 million. Everyone said the debt would be wiped out with the money we'd be getting for being in the premier. That didn't quite happen did it.

Thought it was around £24m myself. But maybe that was in 1997 when we moved into the Reebok.

[Natasha Whittam]

Seems Eddie Davies is good for almost £100 million of the debt but the worry is how we can afford any more of it - I guess Mr Davies is maxed out on what he can pump into the club?

Ok sluffy, you're the financial expert, here's a question for you.

People keep saying if we get relegated we'll go bust....how likely is that?

[Sluffy]

I doubt very much that will happen.

Think of it this way -

You owe a lot of people money - so if they shoot you dead and take all the money you have in your pockets - then that is all they are going to get.  That is like the club going out of business and being liquidated (all the assets being sold off and divided amongst the creditors).

Better then that you don't kill the club off then and agree how much you can pay off your debts and agree with your creditors (over the coming months / years) to write off the rest - this is sort of like going into Administration.

But who does the club owe money too?  Most of it seems to be to the club owner Eddie Davies.  So it would seemingly be against his own interests to take himself to court to get the money (or at least a part of it) off himself!

As long as the club / Eddie Davies can keep the Taxman (and the banks) happy AND has no need for the money elsewhere in his business empire then the club will almost certainly survive.

Don't forget we will also have £40 million over the next four years as parachute payments to ease the financial blow of relegation.

The players on big salaries will be moved on - but most of them are donkey's anyway - so relegation will not be pleasant (under Eddie Davies ownership) be it won't be as fatal as many think it will.

[Natasha Whittam]

I doubt very much that will happen.

Think of it this way -

You owe a lot of people money - so if they shoot you dead and take all the money you have in your pockets - then that is all they are going to get.  That is like the club going out of business and being liquidated (all the assets being sold off and divided amongst the creditors).

Better then that you don't kill the club off then and agree how much you can pay off your debts and agree with your creditors (over the coming months / years) to write off the rest - this is sort of like going into Administration.

But who does the club owe money too?  Most of it seems to be to the club owner Eddie Davies.  So it would seemingly be against his own interests to take himself to court to get the money (or at least a part of it) off himself!

As long as the club / Eddie Davies can keep the Taxman (and the banks) happy AND has no need for the money elsewhere in his business empire then the club will almost certainly survive.

Don't forget we will also have £40 million over the next four years as parachute payments to ease the financial blow of relegation.

The players on big salaries will be moved on - but most of them are donkey's anyway - so relegation will not be pleasant (under Eddie Davies ownership) be it won't be as fatal as many think it will.

Thanks for spelling that out. Perhaps I should put my plans to start FC Bolton on hold.

[Squidgy]

Don't forget we will also have £40 million over the next four years as parachute payments to ease the financial blow of relegation.

The players on big salaries will be moved on - but most of them are donkey's anyway - so relegation will not be pleasant (under Eddie Davies ownership) be it won't be as fatal as many think it will.

Relegation appears to have more financial benefits than staying up.

New set of players and new wage structure and write off the 100million we owe Eddie.  Telly money aside, we are never going to generate much more revenue than we currently are, so the Championship would probably suit a club of our size a lot more when all said and done.

[Big_Sharps]

Parachute payments, fcúk off you dick head.

[Squidgy]

Was that directed at me?

It is a bit early for one of your angry rants.

[Big_Sharps]

Was that directed at me?

It is a bit early for one of your angry rants.

No sir, me and you seem to be on the same page on this scenario.

[Squidgy]

No sir, me and you seem to be on the same page on this scenario.

Superb.

Carry on.