[Albion] Albion accounts 2020/21 [Loss reduced to £53.4m from £67.2m ]

[andy1980]

Thanks. WRT the doom-clangers, my bed stays dry till you post that all is now lost.

If some on NSC ran BHA's finances we would have long since downsized to being a small guest house in Worthing, accepting only members of the Royal family, when open (between the twelftieth and umptyfirst of Never).

What I don't get is on the one hand Tony talks about achieving our target of being a top 10 team by clever recruitment, productive academy and sustainable budget, then I read that only 3 teams have lost more than us with 4 more teams yet to announce their accounts. Surely that means at least 12 more teams have been more financially savvy than us?

 

[Lower West Stander]

Why is Barber’s supposed salary such an issue to some?
Any CEO of £100 mill + a year business would expect to earn such an amount or even more. You (or Tony Bloom in this case) pay for top employees.

Yes - but Barber has zero control over the finances of the club even though he’s CEO and Deputy Chairman (whatever that is).

Tony runs the club - Barber is his gopher.


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[Easy 10]

Wasnt it rumoured that part of the negotiations were slow because Brighton wanted all the money immediatly?

Might have dreamed this but.. though it would have made 100% sense considering the crazy inflation.

Well I've got no inside track any more than anyone else, so who knows. But that would lend weight to the length of time the negotiations took - precisely because its not standard practice for clubs to stump up the entire fee up-front, so the "spread" of the payment of the transfer fee was perhaps a sticking point.

But it could've been any number of things. Agents cut, signing-on fee, length of contract etc.

 

[nwgull]

No, I'm aware of amortisation and the difference.

I'd been under the (mistaken) assumption for a long time that transfers fees are paid in full, up front. They are not.

This is why, when a club goes into administration, you often see a lot of "football debts" owed to other football clubs, which (after HMRC), are prioritised if/when funds become available.

There may be variations on deals depending on various factors (who's dealing with who, desperation of the buying/selling club etc), but it is quite standard for the transfer fee to be paid over the course of the players contract.

Don’t know about the actual cash changing hands, but as far as financial reports are concerned the fee is generally a one-off, extras and sell-on clauses nothwithstanding. It’s like when a business invoices a customer, tax is payable on the date the invoice was sent not when the customer actually gets round to paying.

 

[Weststander]

Yes - but Barber has zero control over the finances of the club even though he’s CEO and Deputy Chairman (whatever that is).

Tony runs the club - Barber is his gopher.


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Other than maximising income, controlling overheads and dealing with a tidal wave of supporter complaints.

 

[Weststander]

What I don't get is on the one hand Tony talks about achieving our target of being a top 10 team by clever recruitment, productive academy and sustainable budget, then I read that only 3 teams have lost more than us with 4 more teams yet to announce their accounts. Surely that means at least 12 more teams have been more financially savvy than us?

4 of which receive vast CL riches.

 

[Lower West Stander]

Other than maximising income, controlling overheads and dealing with a tidal wave of supporter complaints.

“Tony. We’re negative free cash this year. Can I have £32m please?”

“Sorry Paul. Need the money for a new business”

“Oh. Er what shall we do then? We’ve no liquidity”.


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[Easy 10]

Don’t know about the actual cash changing hands, but as far as financial reports are concerned the fee is generally a one-off, extras and sell-on clauses nothwithstanding. It’s like when a business invoices a customer, tax is payable on the date the invoice was sent not when the customer actually gets round to paying.

Football isn't like any other business though, as we well know.

I'd assume its simple enough to find out though. We sold Mooy for £4m to some chinese mob in 2020. Did that £4m appear in full in our accounts that following financial year ?

I wish there was someone we knew who could clarify all this. Someone dull.

 

[Harry Wilson's tackle]

What I don't get is on the one hand Tony talks about achieving our target of being a top 10 team by clever recruitment, productive academy and sustainable budget, then I read that only 3 teams have lost more than us with 4 more teams yet to announce their accounts. Surely that means at least 12 more teams have been more financially savvy than us?

Feel free to repost when the facts are relesed.

For example, what is 'lost'? Debits or balance? Amortized or not?

As far as savvy is concerned, there is only one EPL table and the points are not accumulated on an unfiltered measure of financial savvy, whether money lost, debited or balanced.

 

[nwgull]

What I don't get is on the one hand Tony talks about achieving our target of being a top 10 team by clever recruitment, productive academy and sustainable budget, then I read that only 3 teams have lost more than us with 4 more teams yet to announce their accounts. Surely that means at least 12 more teams have been more financially savvy than us?

I think you’ve read wrong. There are, so far, 5 teams that have lost more and with 8 still to report.

 

[andy1980]

4 of which receive vast CL riches.

8 don't

 

[Springal]

“Tony. We’re negative free cash this year. Can I have £32m please?”

“Sorry Paul. Need the money for a new business”

“Oh. Er what shall we do then? We’ve no liquidity”.


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If it wasn’t Tony it’d be a bank, other investment, stock market for a public company etc.

Paul’s there so Tony can run his other business and keep banking the real money. He runs Brighton like his other businesses - close team for the day to day, while he oversees as chairman in a hands off manner

 

[andy1980]

I think you’ve read wrong. There are, so far, 5 teams that have lost more and with 8 still to report.

I was going by what Chaileyjem said as I cant get twitter on the laptop I was on.

 

[Weststander]

No, I'm aware of amortisation and the difference.

I'd been under the (mistaken) assumption for a long time that transfers fees are paid in full, up front. They are not.

This is why, when a club goes into administration, you often see a lot of "football debts" owed to other football clubs, which (after HMRC), are prioritised if/when funds become available.

There may be variations on deals depending on various factors (who's dealing with who, desperation of the buying/selling club etc), but it is quite standard for the transfer fee to be paid over the course of the players contract.

We can actually ascertain this from the accounts, but will have to wait a year to peruse the Ben White etc terms.

In these accounts to 30 June 2021, cumulatively the squad had cost £184m.

£23.5m of which was unpaid by the Albion as at 30 June 2021 due within one year and another £13.3m due after 30 June 2022.

So the Albion get terms to help cash flow.

Regarding sales, only £2.9m remained unpaid at 30 June 2021, with none receivable after more than one year (i.e. after 30 June 2022).

Perhaps 'big boys' pay in full or more promptly when they're very keen on a player/in competition with rivals?





So the Albion receive their sale transfer f

 

[Weststander]

“Tony. We’re negative free cash this year. Can I have £32m please?”

“Sorry Paul. Need the money for a new business”

“Oh. Er what shall we do then? We’ve no liquidity”.


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"Patience. Wait a year and I'd made a post-tax profit of £825m on Monks Farm, then we can go to the Dutch second division and buy that world class striker for £17.6m".

"Thanks boss, that settles my nerves. Please can I have another pay rise and a Ferrari, for nodding? I must get on, I've drafted another essay to email the fanbase. I'm going to talk a lot about Hope Powell's success as a distraction".

 

[Lower West Stander]

If it wasn’t Tony it’d be a bank, other investment, stock market for a public company etc.

Paul’s there so Tony can run his other business and keep banking the real money. He runs Brighton like his other businesses - close team for the day to day, while he oversees as chairman in a hands off manner

Hands off except for paying for the Amex and investing £400m in the club.

Don’t be daft. No one with that size of investment and the wealth and brain of Tony is going to be hands off. He is the controlling shareholder and the cash payments are straight from his directors loan account.

And believe me, if Albion was a public company his job would be a hell of a sight harder for his 2 million quid.


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[nwgull]

Football isn't like any other business though, as we well know.

I'd assume its simple enough to find out though. We sold Mooy for £4m to some chinese mob in 2020. Did that £4m appear in full in our accounts that following financial year ?

I wish there was someone we knew who could clarify all this. Someone dull.

Mooy’s transfer was at beginning of 20/21, so that 4m will have been part of the 17m player sales income in this set of results. The rest would’ve been from Knocky to Fulham (which was a year long loan-to-but deal) and a few quid for Button and Dale Stephens.

 

[andy1980]

Feel free to repost when the facts are relesed.

For example, what is 'lost'? Debits or balance? Amortized or not?

As far as savvy is concerned, there is only one EPL table and the points are not accumulated on an unfiltered measure of financial savvy, whether money lost, debited or balanced.

We aint exactly progressing in the Premier League table at the moment. We now need 8 points in the last 9 games to match the last two seasons. That is after 12 points from our first 15.

Aren't all the accounts based on the same thing?

 

[southstandandy]

Looking at the figures from the last two years, I for one won't be complaining if we now spend nothing on transfers this summer.

 

[andy1980]

I think you’ve read wrong. There are, so far, 5 teams that have lost more and with 8 still to report.

I just opened that link on my phone. The way I read it is 12 account been released 3 with bigger losses and 8 lost less Man city and Wolves made a profit and Burnley broke even. Wolves wrote of a £127 m debt but still would have made a profit.