Albion STILL losing money

[El Presidente]

My personal view is repayments have started for the loan, what other reason could it be ?

Without wanting to bore you about accounting, loan repayments are a total irrelevance when it comes to profitability. It's only the interest on the loan that is an issue, and as the loan is interest free then it has no bearing on the Albion's profits.

 

[El Presidente]

I'm sure we're losing money as far as the annual accounts are concerned. However, this will be down to payments made for construction of the stadium and training facility. As others have already stated: the accountants would not be doing their job if they showed the Albion making a taxable profit given all the investment made over the past couple of years.

I'd find it very hard to believe that the operating costs exceed the income given that we get 25K+ for most home games!

Construction payments are not included when calculating profits.

 

[Chicken Runner61]

Turnover = Vanity
Profit = (in)sanity
Cash = Reality

 

[Se20]

Without wanting to bore you about accounting, loan repayments are a total irrelevance when it comes to profitability. It's only the interest on the loan that is an issue, and as the loan is interest free then it has no bearing on the Albion's profits.

So could it be the wage bill ? I thought you have a strict wage structure, as illustrated by Murray moving to us ?

 

[El Presidente]

The clubs in the Championship lost approximately £180 million last season.

If you want more details I suggest you read this

http://www.deloittestore.co.uk/Football-Finance-2012-p/foot2012f.htm

........and no, you can't borrow my copy.

 

[dejavuatbtn]

I'm sorry and I don't wish to be rude but most people on here have no idea about the costs of running a business let alone a stadium.

All some people see is 25k fans turning up every other week and spending say £50-60 each. That might seem a lot of money but its not and when you take off match day costs its probably not enough to run the stadium each year let alone players wages and day to day staff wages.

When you add on wages and the costs of running AITC and all the other daily costs you would probably then understand where all the TV, shirt sales, corporate and 1901 etc etc money goes and I bet we are running at a loss still.

The ground and training costs must be adding to losses even with TB's money and without that I bet we would have had a very small budget stadium.

You try running a business and you will be amazed at where money disappears too no matter how much is coming in. If our crowds drop to 14k while we are still paying off debt I suspect the club could have a real problem unless TB keeps funding us.

Exactly what I was trying to say above.

 

[Working class pride]

Only the interest on the loan (or loan arrangement fees etc) are costs against profit.

Yes thanks, that is not a million miles away from what I thought. The loan is could actually a valuable asset, as they will be able to charge interest on the debt, which is then serviced, keeping the money with TB instead of the taxman. Then when he wishes to covert the loan to equity, then he can do so. But frankly, i have no idea and neither does anyone on this board. What we do know is the club gets the highest gates in the division by some distance and that seems a solid base to run a club from

 

[El Presidente]

So could it be the wage bill ? I thought you have a strict wage structure, as illustrated by Murray moving to us ?

My understanding is that we do have a wage policy, as do most clubs (I remember reading in the Standard that Palace had a limit of £8,000 when they signed Gardner last season, and that he was wanting more).

The gossip and rumour is that a few people at the club thought that with an amazing stadium they could go on a spending spree to match on non playing issues, and that is why TB brought in new directors and Barber to prevent the club haemorrhaging money this season.

 

[El Presidente]

Only the interest on the loan (or loan arrangement fees etc) are costs against profit.

Yes thanks, that is not a million miles away from what I thought. The loan is could actually a valuable asset, as they will be able to charge interest on the debt, which is then serviced, keeping the money with TB instead of the taxman. Then when he wishes to covert the loan to equity, then he can do so. But frankly, i have no idea and neither does anyone on this board. What we do know is the club gets the highest gates in the division by some distance and that seems a solid base to run a club from

Err..........it's an interest free loan.

 

[Triggaaar]

Err..........it's an interest free loan.

I know. Just explaining about loans in general, and their relation to profit and loss

 

[El Presidente]

I know. Just explaining about loans in general, and their relation to profit and loss

I was referring to WCP's comment, not yours, sorry for confusion.

 

[dingodan]

I assume the costs of expansion and the training ground plans are included in the calculation?

 

[El Presidente]

I assume the costs of expansion and the training ground plans are included in the calculation?

No, those costs will be capitalised and don't directly affect profit.

 

[seagullsovergrimsby]

If they are genuinely losing money on these gates and players wages are only 50% of turnover, it surely must mean they are repaying the loan to TB, what else could swallow up a significant portion of the other 50%?

Electricity bill ?

 

[fcportaloo]

Well there is one way to find out where the clubs money is going.

Anyone got a spare £18?

Company information for BRIGHTON AND HOVE ALBION FOOTBALL CLUB,LIMITED(THE) (00081077) incorporated 27-05-1904

You can get a lot info from duedil.com. Eg accounts of June 30 2011 show wages spend £6,897,256 up 25% year on year. Loss shows £6.6m

 

[pork pie]

All this is very worrying. With the lack of entertainment offered by Poyet's brand of "football", the only way gates and revenues are going is downwards!

 

[Weststander]

The forthcoming accounts will show a heavy loss due to operating costs, despite turnover rocketing from £6m to £25m+.

The cause is not mainly player wages, it's the wages being paid to the 1,000 other part and full time staff. There has been extravagance with no budgeting or sticking to budgets.

In light of these massive figures, Glenn Murray's pay aspiration of a pay rise from £169k per annum to £312k, seems chicken feed for a class player and even better striker.
Many of the current squad earn far more than that.

All will be revealed when they file their accounts deliberately as late as possible next spring.

 

[Buckley's Mad Eye]

Makes you wonder if its all worth it really. Sell out crowds, pies and pints sunk by the thousand, everyone buying the tat from the super store and the suits still can't turn a profit. What a pile of wank football finance is.

 

[Chicken Runner61]

Makes you wonder if its all worth it really. Sell out crowds, pies and pints sunk by the thousand, everyone buying the tat from the super store and the suits still can't turn a profit. What a pile of wank football finance is.

There is wisdom in what you say!

 

[Pretty pink fairy]

Makes you wonder if its all worth it really. Sell out crowds, pies and pints sunk by the thousand, everyone buying the tat from the super store and the suits still can't turn a profit. What a pile of wank football finance is.

short answer is it isn't worth it , loads of clubs out there who i suspect are on borrowed time, HOW LONG CAN IT GO ON FOR