Breakdown of BHA Financial Report

[fosters headband]

Sometimes you have to spend to turn things around, redundancy costs for example, there was probably a lot of wastage pre-Barber.

I think its going to be 12 months time before we can really see what is happening. It should be remembered these accounts are 7 months out of date and almost certainly include ZERO income regarding the Amex sponsorship who's deal must be significantly higher than B&H Jobs was. Also they may include the full cost of the digital advertsing boards and we only had 5 months income from them.

Thanks for trying to explain things for me, but you have raised another point I don't understand. Redundancy payments. Unless things have changed since I retired no one qualified for redundancy until after two years service, surely they could not have had many staff at the Amex with enough service to get these payments and make a significant figure on the accounts?

 

[Gazwag]

Thanks for trying to explain things for me, but you have raised another point I don't understand. Redundancy payments. Unless things have changed since I retired no one qualified for redundancy until after two years service, surely they could not have had many staff at the Amex with enough service to get these payments and make a significant figure on the accounts?

There could have been a number of staff who were at the club through the Withdean years that were made redundant, some of whom could have been high earners with a number of years service

 

[Bozza]

Thanks for trying to explain things for me, but you have raised another point I don't understand. Redundancy payments. Unless things have changed since I retired no one qualified for redundancy until after two years service, surely they could not have had many staff at the Amex with enough service to get these payments and make a significant figure on the accounts?

Redundancy terms can be whatever any company chooses them to be in excess of any statutory obligation.

 

[knocky1]

Albion in the Community lost top staff members.

 

[cloud]

So we have made a big loss for the last couple of years. That loss can be carried forward, so when we do reach the Premier League, we can offset the loss against any taxable profits we make in the future. So it's not necessarily all bad. In fact, future tax savings can even be put on the balance sheet now, as an intangible asset (deferred tax).

Obviously you don't want that to happen long term, otherwise you can end up with artificially high assets which is meaningless (Groupon were slated for doing this).

 

[Lord Bracknell]

Albion in the Community lost top staff members.

Then surely those redundancy costs will appear in the AITC accounts, not the BHAFC accounts?

 

[El Presidente]

So we have made a big loss for the last couple of years. That loss can be carried forward, so when we do reach the Premier League, we can offset the loss against any taxable profits we make in the future. So it's not necessarily all bad. In fact, future tax savings can even be put on the balance sheet now, as an intangible asset (deferred tax).

Obviously you don't want that to happen long term, otherwise you can end up with artificially high assets which is meaningless (Groupon were slated for doing this).

You seem to be assuming lots of Premier League clubs make profits. I would disagree on that issue as according to the last figures I saw 12 made a loss. Bolton, for example lost £26m and £22m in their last two years in the top flight. Stoke (which is effectively owned by Bet365), lost £31 million.

 

[Kevlar]

in society in general and football in particular financial and fair play just do not go together.

 

[Bedsex]

So we have made a big loss for the last couple of years. That loss can be carried forward, so when we do reach the Premier League, we can offset the loss against any taxable profits we make in the future. So it's not necessarily all bad. In fact, future tax savings can even be put on the balance sheet now, as an intangible asset (deferred tax).

Obviously you don't want that to happen long term, otherwise you can end up with artificially high assets which is meaningless (Groupon were slated for doing this).

The tax losses can only be recognised as a deferred tax asset if there is sufficient evidence of future profits. I'd say it would be almost impossible to recognise those assets yet.

 

[The Merry Prankster]

I am not a financial person other than my household budget. I really do not understand how can we have a guy brought in, who's job it is to get the club financially on track and announce a loss of £8 mill (not his fault) in his first year and pronounce at the time, that next years loss he expects to be the same, but he will working hard to reduce this level of loss. The very next set of accounts under his control he not only fails in his projection, but the loss increases around 40%. Is that an unfair summary of what has happened?

Because whilst PB may have every other club cost under control, by far the largest cost, the players budget, increased by a huge amount (some £6m) from memory. That won't have been his decision.