The Albion posts losses of £14.7m

[The Large One]

Delighted to say El Pres will be a guest on the Albion Roar this week.

I'll try to understand what he'll be on about. I can always pretend.

 

[Alex Alex Dawson oo! oo!]

So is FFP based on "trading loss" not including depreciation? Because the amortisation of a 100million pound stadium over 25 years will be a hit to the accounts of £4m a year. So if we have £15 million loss now, we need to get that down to £8m loss next year. (that is £7million profit plus the £4 million amortisation ) so we need to turn a £11 million profit next year over what we have done this year to hit an 8 million loss.

Where are we going to save £11 million pounds?

Amortisation of stadium and training ground builds and the like are excluded from FFP as are a number of other things including the cost of AITC.

 

[Westdene Seagull]

No depreciation for 2012/13 because the stadium was still in the course of construction. It's a bit surprising, but acceptable.

As one of the top Mods, could I ask that when the final accounts are available and you've dissected them, could you start a new thread ? There's too much in this one to spot the real financial posts over the "quirky" ones !

 

[One Love]

With the costs of running a stadium our size, Championship football does not pay the bills. No-one makes money in the Championship.

We have to make the Premier League even if it means we come back down for the huge financial windfalls.

 

[mejonaNO12 aka riskit]

At least we've saved money on the recruitment side now. No need to send countless scouts on trips abroad. Just let David and his team fire up their second-hand copy of Football Manager 2008/9 and find the players there.

 

[Publius Ovidius]

The FFP rules state that investment in infrastructure need not be included in accounts submitted to them although they will be included in the statutory accounts.

really?

So for FFP, is the trading profit/loss figure purely based on the playing side of the business + the day to day running costs, nothing to do with capital costs?

If so surly that is bad accounting as you must take into account amortisation/depreciation of your assets against your profit ( whichever way you do it in your annual accounts)

Sorry AAD just seen your post.

So it is purely based on trading then.

 

[Peter Grummit]

No. Those costs are excluded, as the stadium and training ground is owned by a separate company, and my understanding is that those costs are not written off to the profit and loss account until the stadium and training grounds are completed.

So losses will be worse (next year?) when these costs are incorporated, although as I understand it they won't count in the FFP equation?

PG

 

[Publius Ovidius]

With the costs of running a stadium our size, Championship football does not pay the bills. No-one makes money in the Championship.

We have to make the Premier League even if it means we come back down for the huge financial windfalls.

or what?

 

[Alex Alex Dawson oo! oo!]

No depreciation for 2012/13 because the stadium was still in the course of construction. It's a bit surprising, but acceptable.

Interesting, and surprising. So you have the accounts (x3) then, I couldn't see them on the CH website earlier today?

 

[Machiavelli]

What's needed is a Europe wide, club level, salary cap system. That's never going to happen.

It won't happen because it contravenes EU employment law. So it won't happen so long as the EU stays as it. It also won't happen if the UK decides to leave the EU. It could happen if there is a change to EU employment law.
This would entail one hell of a struggle.
Ultimately, we need to accept that regulation at various levels is not some evil -- produced by an EU or global super-state -- but something that can bring benefits. This would be one of those benefits.

 

[MattBackHome]

I would be more happy having a competitive Championship team which was affordable to watch than a struggling mid table down Premier League team who overpaid average players, charged a lot for tickets, and was interested only in competing with the other bottom eight clubs.

What is the POINT of having the Premier League millions unless you are one of the teams competing at the top end?

I totally agree.

 

[One Love]

or what?

Rely on a rich benefactor or other funding to finance the losses.

Or go bust.

 

[Peter Grummit]

I am still struggling with why commercial (including ticketing) income has gone up so little despite the significant increase in gates. EP has suggested shirt sales were in the '2nd year' category but I can't believe that is a very significant factor. One area I have heard feedback on (from people who work at the Stadium) is that in Year 2, the novelty of Xmas parties, functions etc had subsided - and in truth many felt were poor value for money - and had dipped significantly.

TLO - any chance of getting Barber on with EP this Saturday (or when the detailed accounts are available) so we could have a forensic public debate on all this?

PG

 

[Dick Knights Mumm]

Delighted to say El Pres will be a guest on the Albion Roar this week.

I'll try to understand what he'll be on about. I can always pretend.

No-one expects you to. Give your expert guests the time to make their points, and do not worry too much that not all your audience will follow all of it. You should collect questions from NSC - there are some knowledgeable people on here.

 

[The Large One]

TLO - any chance of getting Barber on with EP this Saturday (or when the detailed accounts are available) so we could have a forensic public debate on all this?

PG

None. He's not available on matchdays.

It's quite short notice, and the accounts aren't even available for minute scrutiny yet.

 

[Peter Grummit]

None. He's not available on matchdays.

It's quite short notice, and the accounts aren't even available for minute scrutiny yet.

Fair enough Al re. this Saturday. But that's why I suggested 'when the detailed accounts are available'. Got to be worth a try.

PG

 

[Acker79]

Perhaps that's the way forward - establish ourselves as a competitive Championship team, flirting with the playoff each year, and really focus on going as far as possible in both cup competitions - after all, this is the only place where any vestige of 'romance' in football remains.

But it remains to be seem how competitive we can be in an FFP world where there will be a constant cycle of teams who have massively higher tv income, and an initial years amnesty on FFP allowing them to pay the best players the fees they want leaving the clubs who don't have that income having to settle for lesser players.

 

[The Large One]

Fair enough Al re. this Saturday. But that's why I suggested 'when the detailed accounts are available'. Got to be worth a try.

PG

If we want El Pres and PB together, the earliest opportunity would be 21 Feb (for broadcast the next day) if - IF - El Pres was to come down a day early. Personal schedules don't tally, sadly.

 

[El Presidente]

So losses will be worse (next year?) when these costs are incorporated, although as I understand it they won't count in the FFP equation?

PG

They will be for the parent company but not the Albion itself, as the club does not own the stadium.

 

[jabba]

One way to bring in revenue From BBC website.

Brazilian First Division club Gremio are to open their own chain of fast food restaurants in a bid to diversify and bring in cash to sign new players.