Albion's £8m pa loss [Wake up call tomorrow for the minority of moaners.]

[Sheebo]

Without wanting to read through 12 pages, Do we know if this is a general operating loss or might it include things like the corners being filled in.. I can't see how it would be a normal operating loss with our huge gates and merchandise / refreshments takings?! We don't pay stupidly high wages either... As for ' wake up call for moaners' I don't think the loss has much to do with the matchday tickets being a few quid too much (in a lot of peoples opinion) so hope this 1 gripe I share with many others doesn't make me a moaner!!!!?

 

[clapham_gull]

I'm confused by the thread title to be honest. Does it relate to people moaning about pricing ?

I didn't agree with the pricing for the FA cup and voted with my feet, but I'm not responsible for inflated wages or whatever under estimates the club made for the day to day running costs of the stadium.

The first is a problem with the football industry and nothing to do with me. It may be the reality of competing at the top of the championship but it isn't a reality I'm any way responsible for.

I understand the predicament. You want fans through the door. To get them there you need to spend etc...

But how did clubs get in this situation ? Sorry not guilty.

Player wages are madness across football. Unfortunately it takes the whole industry to come together to sort it out.

 

[Husty]

Without wanting to read through 12 pages, Do we know if this is a general operating loss or might it include things like the corners being filled in.. I can't see how it would be a normal operating loss with our huge gates and merchandise / refreshments takings?! We don't pay stupidly high wages either... As for ' wake up call for moaners' I don't think the loss has much to do with the matchday tickets being a few quid too much (in a lot of peoples opinion) so hope this 1 gripe I share with many others doesn't make me a moaner!!!!?

It doesn't include loan repayments or major infrastructure work.

 

[The Large One]

The accounts can't come soon enough to settle this confusion.

Whatever the technicalities, loan repayments are an expenditure in the same way that repaying mortgages are for individuals. It's money that the club needs to pay out throughout the year and would counter any revenue, even if not on the balance sheets.

There is no confusion, except in your peabrain.

 

[Benson]

The sooner we are out of this crappy ground, and out of this poxy league, and maybe be able to get a few prem class players and their partners to nosh off everyone in the stadium and then hand us all a fifty pound note each as we leave, the sooner people will be complaining about the bloody weather.

Ahhhhhhhhhgggggggggggggg.

 

[ArfurW8]

The sooner we are out of this crappy ground, and out of this poxy league, and maybe be able to get a few prem class players and their partners to nosh off everyone in the stadium and then hand us all a fifty pound note each as we leave, the sooner people will be complaining about the bloody weather.

Ahhhhhhhhhgggggggggggggg.

If they handed out fifty pound notes to everybody as they left the stadium some people would still complain because they wanted two twenty pound notes and a tenner instead.

 

[Deleted member 18477]

So basically to run the Albion as a top 10 Championship club will incur a regular £8M loss per season unless new revenue streams are tapped ? Lets hope Barber has sorted out a decent shirt sponsorship deal for the next 4 years.

This. Although if we were in the prem you could times whatever deal we got by about 10! The premier league and the money situation in football is just ridiculous! Everyone needs to be in the prem! we need to be in the prem!

I was debating whether I could afford a ST next season... After hearing about these losses especially, I will def make sure I can afford one. I'll eat less...

 

[Sussex Nomad]

As I said, it's going to be all over the place this weekend. I wasn't guessing!

Why do you feel the need to always be a snidey Mr Big Bollocks? Just an observation.

Edit: You have this thing that you have to tell everyone on here you know what is going on but you can't say why, HB&B got a ban for that, but you do it in such an arrogant 'I am in the know' way. You are privileged in your position and should stop being such an arse when you love telling people you know but can't tell. Grow up a little Darren.

 

[Bigtomfu]

The Premier League is the only way we'll make a profit at The Amex, sadly not likely with the Uraguayan clown in charge

I'm not the first and clearly won't be the last drawn into this but here goes:

I've had the "pleasure" of observing you several seasons back on the way to an away game, can't remember which before you retort about frame of reference etc, whereby you were slagging off a good friend of mine, and at that time a supposed friend of yours. Unbeknownst to you I was there to hear all and I came to the following conclusions:

1) You are a petty minded imbescile of the highest order
2) You surround yourself with embarrassing wannabees who right now are probably with you basking in the collective glory of yet another purile inflammatory remark
3) Your increasingly weak stock force you to make more and more pathetic claims and outbursts to satisfy your self inflated mastabatory ego

Grow up. Stop annoying people. And get a life. Preferably a real and not cyber one.

*advances swiftly to ignore button*

 

[Garry Nelson's Left Foot]

I don't think so. There were a lot of one off costs incurred when moving from Withdean to The Amex which by definition will not be repeated, however my understanding is that there was poor overall cost control on the NON-PLAYING budget, which led to the appointment of some of TB's right hand men and Paul Barber.

So does that imply that with some careful management the 8m p.a loss can be reduced? By how much? Is breaking even a reasonable or achievable target? What is a manageable loss? Surely 8million a year is not sustainable?

 

[El Presidente]

So does that imply that with some careful management the 8m p.a loss can be reduced? By how much? Is breaking even a reasonable or achievable target? What is a manageable loss? Surely 8million a year is not sustainable?

Until I see the accounts in detail probably best to say too much. However one thought I had last night is that depreciation on the Amex is likely to be high. If for example the total cost of the stadium in the accounts works out as £100 million, and is being depreciated over 25 years, then the annual cost in the profit and loss account is £4 million. This is not a cash cost.

Because we have the most expensive stadium in the division we will therefore have the highest depreciation charge. In addition we have the travel voucher expense, which other clubs don't have, and this is rumoured to be another million.

£8 million a year losses are sustainable, if Tony Bloom decides to keep dipping his hand in his pocket to that extent. He can't be blamed for having an objective of wanting the club to break even though.

The losses this year of £8 million is likely to include some costs in relation to the application for the Lancing training ground, which is non-recurring in nature.

 

[rool]

Mustafa, this might help

You borrow £100 from a mate to buy a nice bit of bling bling from ebay.
When you get it you think it's not quite jazzy enough for you so you put it back on for sale and it sells for £125.
When you get your money you give the £100 back to your mate.
In your transaction (profit & loss a/c), have you

a) made a £25 profit or
b) made a £75 loss because you had to pay your mate back?
(For the purpose of this excercise I have ignored ebay charges and p&p ha ha)

 

[somerset]

The losses this year of £8 million is likely to include some costs in relation to the application for the Lancing training ground, which is non-recurring in nature.

Exactly, although the general operational running costs are being adjusted, I suspect a lot of the year one deficit is made up of one off startup and maintenance costs for the building adjustments and plans, both at the Amex and the training ground.

 

[beorhthelm]

Mustafa, this might help

You borrow £100 from a mate to buy a nice bit of bling bling from ebay.
When you get it you think it's not quite jazzy enough for you so you put it back on for sale and it sells for £125.
When you get your money you give the £100 back to your mate.
In your transaction (profit & loss a/c), have you

a) made a £25 profit or
b) made a £75 loss because you had to pay your mate back?
(For the purpose of this excercise I have ignored ebay charges and p&p ha ha)

shirley a more appropriate example is:
you've borrowed the £100 and wil repay at £5 p/w. if it takes you 10 weeks to sell at £125, so you've repayed £50 on top of the £100 capital. im pretty sure theres no profit anymore.
im no accountant, but i thought net profit was gross profit less all business overheads, and loan repayments seems like an overhead to me. isnt this why large corporations sometimes load up with debt even when they have cash in the bank?

really, forget the examples, can an accountant simply say yea or nay on the matter?

 

[brightn'ove]

I think we should cancel the academy and save wasting another £25 million. Tony must be mad.

Are you mental? All it takes is a few exceptional players being produced and the academy is paid off. For the long term, we NEED the academy.

 

[Green Cross Code Man]

Are you mental?

Don't even go there.

He either really does lack any understanding or he just enjoys winding people up. I know which one my money is on.

 

[Withdean and I]

Until I see the accounts in detail probably best to say too much. However one thought I had last night is that depreciation on the Amex is likely to be high. If for example the total cost of the stadium in the accounts works out as £100 million, and is being depreciated over 25 years, then the annual cost in the profit and loss account is £4 million. This is not a cash cost.

Because we have the most expensive stadium in the division we will therefore have the highest depreciation charge. In addition we have the travel voucher expense, which other clubs don't have, and this is rumoured to be another million.

£8 million a year losses are sustainable, if Tony Bloom decides to keep dipping his hand in his pocket to that extent. He can't be blamed for having an objective of wanting the club to break even though.

The losses this year of £8 million is likely to include some costs in relation to the application for the Lancing training ground, which is non-recurring in nature.

Very much this.

Without seeing detailed accounts its impossible to say for sure, but most capital assets (in this case, The Amex) are depreciated over 15 years.

This is against a likely lifetime of the stadium of at least 50 years.

It's only a paper cost not a cash cost.

El Pres is right.

 

[Green Cross Code Man]

Very much this.

Without seeing detailed accounts its impossible to say for sure, but most capital assets (in this case, The Amex) are depreciated over 15 years.

This is against a likely lifetime of the stadium of at least 50 years.

It's only a paper cost not a cash cost.

El Pres is right.

Does that mean then, if true, that of the 8 million, potentially half would be depreciation values? Sorry to be a bit slow.

 

[WATFORD zero]

Until the accounts are published, the headlines really mean very little outside of their marketing or political value. When they are published, a few on here have previously shown their credentials in interpreting financial accounts (and porn) and i will await their input.

In the meanwhile, I believe that in TB and Barber, we have two professionals who are well capable of running an organisation of this size and am not overly concerned as, although they have said that there have been problems, steps have been taken to overcome these.

To the few who believe that heavy investment and an immediate promotion to the premiership is the only solution, i suggest they go and read a little bit of history about the club.

and to Mustafa Kemal, do you realise that Ernest and HB&B know they are one joke accounts ?

 

[Weststander]

Until I see the accounts in detail probably best to say too much. However one thought I had last night is that depreciation on the Amex is likely to be high. If for example the total cost of the stadium in the accounts works out as £100 million, and is being depreciated over 25 years, then the annual cost in the profit and loss account is £4 million. This is not a cash cost.

Because we have the most expensive stadium in the division we will therefore have the highest depreciation charge. In addition we have the travel voucher expense, which other clubs don't have, and this is rumoured to be another million.

£8 million a year losses are sustainable, if Tony Bloom decides to keep dipping his hand in his pocket to that extent. He can't be blamed for having an objective of wanting the club to break even though.

The losses this year of £8 million is likely to include some costs in relation to the application for the Lancing training ground, which is non-recurring in nature.

El Pres .... I bow to your accounting knowledge, but you will find that the stadium quite rightly is being depreciated over at least 50 years.

The loss was indeed caused by out of control recurring (not one off) costs especially non playing payroll.

The club's boast in tv articles c. Sept 11 that one way or another they give employment to almost a 1,000, is unsustainable .... the wages bill is simply to great.