Ipswich losses for 2012 £16m, £79m in debt.....

[Superphil]

So, are we still "Barber Out"?

 

[El Presidente]

Those figures are absolutely terrifying. Losses of £16m on turnover of £15m - or to put it another way, their costs were more than twice their revenues.

Eh?

 

[Mackenzie]

So, are we still "Barber Out"?

More tits out, I'd have thought.

 

[Brovion]

There will be no doomsday scenario, obviously. They take the administartion route, the first chance they get, when the 10 points won't affect them, wipe out all the debts and merrily stroll on as if nothing's happened.

Indeed. That is the thing that really has to change, the fact you can swap tens of millions of pounds of debt for ten league points and carry on as if nothing had happened. Pity we as individuals can't do the same: run up hundreds of thousands of pounds of debt and swap it all for three points on your driving licence.

 

[rool]

Eh?

I guess he's saying that if you make a loss of £16m on a turnover of £15m the costs must be £31m (2.07 x £15m t/o)

 

[El Presidente]

Indeed. That is the thing that really has to change, the fact you can swap tens of millions of pounds of debt for ten league points and carry on as if nothing had happened. Pity we as individuals can't do the same: run up hundreds of thousands of pounds of debt and swap it all for three points on your driving licence.

It is not as simple as that though. HMRC are taking a much firmer line than in previous years and the NewCo is unlikely to be given credit terms by suppliers if the administration is a pre-pack deal.

 

[El Presidente]

I guess he's saying that if you make a loss of £16m on a turnover of £15m the costs must be £31m (2.07 x £15m t/o)

Yup, silly me.

The Albion's accounts in 2011 were the same though.

 

[gripper stebson]

There will be no doomsday scenario, obviously. They take the administartion route, the first chance they get, when the 10 points won't affect them, wipe out all the debts and merrily stroll on as if nothing's happened.

...It's the CPFC way!

 

[Jimmy Grimble]

Taking the Palace route, then.

 

[JamesAndTheGiantHead]

Lets make them a banner......

Some money times can't thing buy football aministration there.

 

[Tim Over Whelmed]

its scary how big debts are in football, would companies outside of football be allowed to continue with such debt and losses?

Just asking.......

That's the point though, they are a limited company and the Director's MUST ensure that they can pay for any goods or services they procure, so either there's some substantial personal guarantees around, assets we're unaware of or "possibly" someone's not be anywhere near as within the law as they should be?

 

[gripper stebson]

Some money times can't thing buy football aministration there.

 

[Wozza]

Yup, silly me.

Maybe sign up for a finance course or something?

 

[El Presidente]

Maybe sign up for a finance course or something?

Wise words Wozza, there's a couple that are interesting, you wouldn't believe who was going to be teaching them next year though....

http://www.liv.ac.uk/footballindustry/

http://www.ucfb.com/campus-locations/ucfb-burnley

 

[Triggaaar]

The FA won't want to send their cash cows to the abattoir.

Oh ok. I don't know the details of how the FA get involved, how do they profit from teams going into administration with little punishment?

its scary how big debts are in football, would companies outside of football be allowed to continue with such debt and losses?

Just asking.......

A company can have as much debt as it likes - until a creditor asks for the money back, they can carry on.

 

[The Wookiee]

Where did the UEFA Cup Final money go?

not forgetting the 1978 cup final money

 

[TWOCHOICEStom]

Their "AGAINST MODERN FOOTBALL" banner is starting to look a little silly isn't it....

 

[HawkTheSeagull]

Looks like there will be a fire sale there this Summer, do they have any good players ?

 

[les dynam]

There will be no doomsday scenario, obviously. They take the administartion route, the first chance they get, when the 10 points won't affect them, wipe out all the debts and merrily stroll on as if nothing's happened.

Nail on head. Until this route is closed off, nothing will change. FFP certainly won't make much difference... if you completely ignore FFP rules and make no effort to comply (like Palace!) with them, racking up debts and spending a fortune on wages, and secure promotion because of this... the only punishment is that you have to make solidarity payments to your recently vanquished Championship rivals. You are still promoted with all the financial rewards this brings, you just have to throw a little loose change over your shoulder as you step up and away. This is a joke! Who, other than us, is going to stick to the rules?

 

[El Presidente]

Nail on head. Until this route is closed off, nothing will change. FFP certainly won't make much difference... if you completely ignore FFP rules and make no effort to comply (like Palace!) with them, racking up debts and spending a fortune on wages, and secure promotion because of this... the only punishment is that you have to make solidarity payments to your recently vanquished Championship rivals. You are still promoted with all the financial rewards this brings, you just have to throw a little loose change over your shoulder as you step up and away. This is a joke! Who, other than us, is going to stick to the rules?

Not the case, if you exceed the FFP rules (and the accounts have to be submitted by 31 December) then you are subject to a transfer embargo so would not be able to sign any players in the January window.

For example, Southampton and West Ham both exceeded the rules last season, and would therefore have been unable to sign Billy Sharp and Ricardo Vaz Te.