[Albion] Swiss Ramble have dropped a football debt statbomb

[MJsGhost]

If only there was a regular user who understands this sort of thing and could either confirm or deny it.......

A figures sort of guy ..with experience in these matters ..aye

Don't those types tend to be really DULL? I can't imagine there would be anyone like that hanging around on NSC

 

[Stat Brother]

If only there was a regular user who understands this sort of thing and could either confirm or deny it.......

If he were to pour scorn on a Swiss Ramble position, I believe it would be a first

 

[Wardy's twin]

This doesn’t give the full picture.

ManC and Chelsea routinely convert (on paper) loans from the owners (debt) into share capital, so those numbers drop out of these debt stats. TB has done this to an extent ... £70m in the last years.

Interest-free debt from the owner and share capital in a private limited company are in effect equity, with no adverse effects on the business.

Other than £37m borrowed recently from a financial institution, the club is effectively debt free.

To clarify does the 'share capital' move mean you own part of the asset so you are no longer a creditor ?

 

[Westdene Seagull]

If only there was a regular user who understands this sort of thing and could either confirm or deny it.......

Why would anyone want to hear from that DULLARD ?

 

[Johnny RoastBeef]

Pure rubbish the club doesn't have that debt. The Community Stadium Ltd company owns the stadium and training ground, the majority of debt is with them and has nothing to do with the club apart from it's directors. The football club rent the facilities.

Crap reporting.

Swiss Ramble is the doyen of football finance. I assume he is cutting through the accounting smoke and mirrors.

 

[PILTDOWN MAN]

Swiss Ramble is the doyen of football finance. I assume he is cutting through the accounting smoke and mirrors.

It's rubbish still. The club have never owned the stadium. It's not like Derby who sold their ground to their chairman or such like. The ground financed by a company the club rents from. It's in the accounts. You do not rent something off yourself do you?

The football club is a different entity to a holding company. The holding company has the debt.

https://find-and-update.company-information.service.gov.uk/company/04612364/filing-history

That's not smoke and mirrors it's factual.

 

[Weststander]

To clarify does the 'share capital' move mean you own part of the asset so you are no longer a creditor ?

Converting debt to share capital doesn’t necessarily affect ownership or share of ownership of a company. (Other matters come into play, for example classes of share and their varying rights).

Yes, it means that portion of debt converted to share capital is no longer a creditor. Instead becoming equity, becoming the last category repaid on the company being wound up.

Mark Goldberg, Simon Jordan and Steve Parish are experts in that field.

 

[Rookie]

Tony is also losing € 6.6 million per season at Union SG. It's his money, of course.

Really? I’d imagine in the Belgian second division that is some doing!

 

[Hampster Gull]

Wait for the Palace sheep to turn up spouting all sorts.

I think they are all still buddy pointing to scarves on their walls and screaming about Roy

 

[sparkie]

Really? I’d imagine in the Belgian second division that is some doing!

[tweet]1357748166192463875[/tweet]

 

[Johnny RoastBeef]

It's rubbish still. The club have never owned the stadium. It's not like Derby who sold their ground to their chairman or such like. The ground financed by a company the club rents from. It's in the accounts. You do not rent something off yourself do you?

The football club is a different entity to a holding company. The holding company has the debt.

https://find-and-update.company-information.service.gov.uk/company/04612364/filing-history

That's not smoke and mirrors it's factual.

Of course it's smoke and mirrors, they are both owned by the same entity and each is useless without the other.

It just suits our needs for them to be classified as independent.

 

[drew]

Of course it's smoke and mirrors, they are both owned by the same entity and each is useless without the other.

It just suits our needs for them to be classified as independent.

Exactly. Ridiculous to argue differently.

 

[Couldn't Be Hyypia]

can't find the link to the stat I wanted to share so removed the post, basically it shows that we pay £0 interest on debt compared to most other clubs where it is a burden.

 

[SAC]

can't find the link to the stat I wanted to share so removed the post, basically it shows that we pay £0 interest on debt compared to most other clubs where it is a burden.

It was on one of the (excellent) Swiss Ramble graphs. Showed how much Man U had to pay in interest to their owners. Almost feel sorry for them.

 

[SeagullinExile]

[tweet]1357748166192463875[/tweet]

The cost of promotion?