[Albion] Albion make £12m profit in 2017/18

[Weststander]

So Palace paid over £30m more on wages in 2017 than we did in 2018. Wow.

Equates to their 11 highest paid players receiving £52.5k a week more than ours (£45k a week is often mentioned). So double.

Certainly not getting value based on consistent relegation struggles and a stack of defeats every season.

 

[Sheebo]

I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

 

[portlock seagull]

I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

Laundering. He has to move cash about whilst waiting for the new ‘Colombian harvest’

 

[Creaky]

I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

For some reason players are treated for accounts purposes in much the same way as say a saw bench is for a joinery firm. The full amount of the purchase price has to be paid to the seller but it is only the depreciation amount that is charged against the P&L.

Buy a player for £100m on a 5 year contract - only £20m is shown as a ‘cost’ on the P&L but you still need to pay the seller the full amount immediately. The money for that has to come from somewhere.

 

[clapham_gull]

I bet EP was apoplectic. #BozzaOut

I thought parliament was in chaos before I read that. Disgrace.

 

[LlcoolJ]

Great stuff this. I'll digest the full picture tomorrow but one thing is certain.

We now have definitive proof that we're in MUCH better financial shape than Palace.

Can't wait to see their 2018 accounts.......... Oh.

I look forward to Else Pres doing a full analysis so I don't have to read much more of the boring stuff (and I love accounts). But the wages/amortisation v turnover looks like we're doing it right.

 

[Return of the Rev]

Good news, finally in the black, Tony’s investment was worth it.

With identical broadcasting income to us, it will be interesting to see how Fulham and Wolves fare in their first PL accounts. Given their huge spend in fees, agents fees and wages for well known internationals.

Since TB has invested over 200 million? and first season to turn a profit I suggest not a great investment over 5 years. 1.2% per year. Might take him another 15 years to recoup at this return. How many of us would gamble on the next 15 seasons. Lucky he is a fan which thankfully seems to override his remarkable business brain.

 

[Couldn't Be Hyypia]

View attachment 102902

What have they got that could have depreciated by nearly 3m and still be standing?

 

[Weststander]

Since TB has invested over 200 million? and first season to turn a profit I suggest not a great investment over 5 years. 1.2% per year. Might take him another 15 years to recoup at this return. How many of us would gamble on the next 15 seasons. Lucky he is a fan which thankfully seems to override his remarkable business brain.

£130m on infrastructure which he wanted for the club regardless of their division.

But on the players side, his backing was telling in getting us to the PL, meaning he won’t need to pump in £25m a season ad infinitum, so his plan worked.

As with most clubs, it is not a normal business model, with return on investment. Done for love of the club, or in other cases selling later for a higher sum.

 

[spence]

What have they got that could have depreciated by nearly 3m and still be standing?

Taking a guess here but paying off sacked managers ?

 

[m20gull]

For some reason players are treated for accounts purposes in much the same way as say a saw bench is for a joinery firm. The full amount of the purchase price has to be paid to the seller but it is only the depreciation amount that is charged against the P&L.

Buy a player for £100m on a 5 year contract - only £20m is shown as a ‘cost’ on the P&L but you still need to pay the seller the full amount immediately. The money for that has to come from somewhere.

Some transfers are now done on an instalment basis, but ours have been funded by additional "borrowing" from Tony.

So although we have made a profit, it is fairly notional. For me, the interesting point is that our income is £140, with costs of over £100m. While you can increase income by finishing higher in the league the main area to increase is commercial income. So even with our salary control, until we can turn an income from property or academy sales we will have about £30m for new players and additional wages. So not even one Benteke.

 

[Lower West Stander]

I’m being a bit thick I expect. Why did Bloom put another loan in if we’ve made money. And does that loan he’s out in not appear in these figures? So it is actually £12m profit legit-like...

It would be interesting to see the cash flow statement.

Ebitda (the figure left after costs) is pretty small and out of that has to come capex on the stadium, working capital, interest and tax (although I doubt TB charges interest on his loans).

It has probably gone on to cover some of this. Cash flow is very different from profit.


Sent from my iPhone using Tapatalk

 

[cloud]

What have they got that could have depreciated by nearly 3m and still be standing?

Can't be the training ground https://www.mirror.co.uk/sport/football/news/crystal-palace-training-ground-given-13691418

 

[Gary Leeds]

so we had an increase on TV money of 110 million and spent £46 million extra on wages (which we would have to on first season in higher division), Palace got an extra £41 million and spent £31 million of that on increased players wages (having already been an established PL team for a few years and having one of the best squads in the country). Sounds good business sense to me

 

[GOM]

You want a glimpse behind the curtain of this ultra-slick and professional media organisation? You got it.

#BarberIn

Do people still say soz ? - Clearly they do, I'm definitely no longer a 'with it' 'down with the kids' person

 

[spence]

Do people still say soz ? - Clearly they do, I'm definitely no longer a 'with it' 'down with the kids' person

Agreed. Never used it in my life. You would have thought that was for kids. Obviously not

 

[Bozza]

It would be interesting to see the cash flow statement.

Ebitda (the figure left after costs) is pretty small and out of that has to come capex on the stadium, working capital, interest and tax (although I doubt TB charges interest on his loans).

It has probably gone on to cover some of this. Cash flow is very different from profit.


Sent from my iPhone using Tapatalk

Here's most of it.

 

[jasetheace]

I thought parliament was in chaos before I read that. Disgrace.

Vote of no confidence?

 

[jasetheace]

Actually, I'd be interested in some of the fan related minutae. How many more pints/pies/strips/programmes/halfandhalfs etc...

 

[hans kraay fan club]

For me, the interesting point is that our income is £140, with costs of over £100m. While you can increase income by finishing higher in the league the main area to increase is commercial income. So even with our salary control, until we can turn an income from property or academy sales we will have about £30m for new players and additional wages. So not even one Benteke.

Your summary assumes that no players will ever be SOLD (or even just be released - freeing up wage commitments)