The Albion posts losses of £14.7m

[El Presidente]

But would he not have to listed as one though, as he is only listed as CEO? I know directors run the company and the CEO carries out the wishes of the board (ie the chairman and directors), and my understanding is that a CEO is not automatically a director. But never mind, I am really questioning the assumption that the highest salary reported is that of the CEO, as it may not be.

I've got the accounts, PB is a director. The CEO technically doesn't have to be one, but it's unusual.

 

[KZNSeagull]

I've got the accounts, PB is a director. The CEO technically doesn't have to be one, but it's unusual.

Ok, thanks!

 

[Grassman]

Very good and informative show. Great start with Boogaloo Investigator as theme tooon, as well.

 

[KZNSeagull]

Very good and informative show. Great start with Boogaloo Investigator as theme tooon, as well.

It was good, but next time El Pres is on he needs to play bingo using the words he got added to the Viz Profanisaurus. See if anyone notices....

 

[Alex Alex Dawson oo! oo!]

Rent on stadium?

Because it's not owned by the football club.

 

[Brighton Breezy]

Rent on the stadium?

 

[El Presidente]

Rent on the stadium?

Stadium is owned by The Community Stadium Company Limited, which is a company owned by Brighton and Hove Albion Holdings a Ltd. TCS rent the stadium to Brighton and Hove Albion Limited from 1 April 2013 at £1 million a year, so £250k for the three months to 30 June 2013.

Tony Bloom has about 93% of the shares of BHA Holdings Ltd, which owes him £100m (plus he has paid £60m plus for shares).

 

[Brighton Breezy]

Stadium is owned by The Community Stadium Company Limited, which is a company owned by Brighton and Hove Albion Holdings a Ltd. TCS rent the stadium to Brighton and Hove Albion Limited from 1 April 2013 at £1 million a year, so £250k for the three months to 30 June 2013.

Tony Bloom has about 93% of the shares of BHA Holdings Ltd, which owes him £100m (plus he has paid £60m plus for shares).

Is this a potential sidestepping of FFP by paying rent to ourselves?

So does this mean - and I don't begrudge him it one bit - but while not asking for loans back, Bloom is getting the rent?

Again, not a criticism, just trying to understand it.

 

[Goldstone1976]

Stadium is owned by The Community Stadium Company Limited, which is owned by Brighton and Hove Albion Holdings a Ltd. TCS rent the stadium to Brighton and Hove Albion Limited from 1 April 2013 at £1 million a year, so £250k for the three months to 30 June 2013.

Which is an interesting number when you consider FFP. Clearly, a charge had to be made otherwise the FL would call foul play, £1m would seem to be at the very bottom end of an arms-length deal. The club seem to want to adhere to FFP in a fair way, but are not averse to minimising the P&L charge where they have control over the impact. Here's a prediction: if we get promoted this season, one of the clubs who did not will make a stink about the rent being under market value and call us "cheats" (or something less confrontational) and also call for us to be fined. Just IMO, like.

 

[nwgull]

Stadium is owned by The Community Stadium Company Limited, which is a company owned by Brighton and Hove Albion Holdings a Ltd. TCS rent the stadium to Brighton and Hove Albion Limited from 1 April 2013 at £1 million a year, so £250k for the three months to 30 June 2013.

Tony Bloom has about 93% of the shares of BHA Holdings Ltd, which owes him £100m (plus he has paid £60m plus for shares).

Am I right in thinking that that rent of 1m pa doesn't count against FFP accounts?

Also with around 4.5m in player sales this season - Bridcutt, Barnes, Jobbie - it should make it that much easier to reach the 8m target.

 

[browneggsandham]

I assume that the company which owns the stadium is also owned by TB? Perhaps that may answer the questions of how Bloom is getting his money back if that's the case. In which case could we also assume that at some point (no time soon) it will be repaid and the rent may be reduced to a nominal amount.

 

[Goldstone1976]

Is this a potential sidestepping of FFP by paying rent to ourselves?

So does this mean - and I don't begrudge him it one bit - but while not asking for loans back, Bloom is getting the rent?

Again, not a criticism, just trying to understand it.

No and no.

The rent is paid by the club to the stadium company whose accounts are consolidated in Holdings' accounts. The rent will be part of our FFP accounts. The FL will expect a club to pay something for the stadium. IMO, the rent is the lowest it could possibly be for use of such a large asset. TB is not receiving the rent since he doesn't own the asset; Holdings, through the stadium company, does.

 

[The Merry Prankster]

I assume that the company which owns the stadium is also owned by TB? Perhaps that may answer the questions of how Bloom is getting his money back if that's the case. In which case could we also assume that at some point (no time soon) it will be repaid and the rent may be reduced to a nominal amount.

The rent doesn't even begin to cover the interest on the stadium costs. It would never be repaid.

 

[El Presidente]

Is this a potential sidestepping of FFP by paying rent to ourselves?

So does this mean - and I don't begrudge him it one bit - but while not asking for loans back, Bloom is getting the rent?

Again, not a criticism, just trying to understand it.

1:Stadium depreciation/rent is ignored for FFP purposes, so the number is added back to losses to reduce them (as are youth development costs, probably about another £2-2.5million) so our FFP loss is between £11-12million I estimate.

2: TCS Ltd make a loss as they incur the stadium running costs, so nothing available for TB.

 

[Goldstone1976]

1:Stadium depreciation/rent is ignored for FFP purposes.

El Pres - are you sure about rent being added back for FFP purposes? I know that depreciation is, but thought that rent wasn't. If it is excluded, what is the reason for charging rent at all, or alternatively, charging it at such a low level?

If you say it is definitely excluded, I'll stand corrected gladly, but will be puzzled.

 

[Brighton Breezy]

1:Stadium depreciation/rent is ignored for FFP purposes, so the number is added back to losses to reduce them (as are youth development costs, probably about another £2-2.5million) so our FFP loss is between £11-12million I estimate.

2: TCS Ltd make a loss as they incur the stadium running costs, so nothing available for TB.

Thanks.

 

[El Presidente]

El Pres - are you sure about rent being added back for FFP purposes? I know that depreciation is, but thought that rent wasn't. If it is excluded, what is the reason for charging rent at all, or alternatively, charging it at such a low level?

If you say it is definitely excluded, I'll stand corrected gladly, but will be puzzled.

The FL rules say that "Impact of purchase, sale and depreciation of fixed assets excluding players" is an excluded cost. Rent is charged on rented assets in lieu of depreciation on owned ones and so would be allowable IMO, I'm pretty sure the club will have agreed this with the FL.

 

[KZNSeagull]

Nobody has bitten yet with the change in thread title re PB! Assuming that a fair whack of that payment is commission on sponsorship deals, I think we can assume that the amount the deals have increased by will be many times larger than his commission, which will be excellent.

 

[Mr Putdown]

Assuming that a fair whack of that payment is commission on sponsorship deals, I think we can assume that the amount the deals have increased by will be many times larger than his commission, which will be excellent.

Rather than assume anything, the accounts state that commercial sponsorship and advertising increased by £0.3M.

 

[skipper734]

Can't see Business Rates. So does the Stadium company pay those, with the Million it is paid in rent?