Villa lose £81M

[Rugrat]

Can't see any other thread on this but here I was thinking that TB could start to get some of his money back if we were to get promoted. I assume he still can but seeing Villa's immense loss was a bit of a shock.

Club statement has put it down to impairment of fixed and intangible assets, the second of those described as player registrations

Does that mean they have been over valuing their players and have been caught in an audit, or just revaluing after transfer activity? Are fixed assets the ground and training facilities which might have been equally overvalued or are these things they are just writing off as a clean up excericise - or even a tax dodge.

I'm interested in understanding a bit more ....... sure [MENTION=31]El Presidente[/MENTION] will have a good idea

 

[Nathan]

From the bbc... http://www.bbc.co.uk/sport/football/39108015

Aston Villa have reported an £81m loss for the financial year 2015-16, the season in which they were relegated from the Premier League, prior to Dr Tony Xia's summer takeover.

According to a club statement, Villa's operating loss trebled from £26.6m in 2014-15, while turnover fell from £115.7m to £108.8m.

Villa's average home gates were hardly affected despite such a poor season.

The drop in revenue is attributed to a smaller share of Premier League money.

Villa's average home league attendance in 2015-16 was 33,690, a fall of only 1.33 % on the previous campaign, when they averaged 34,133 at their 42,660-capacity Birmingham home.

But finishing bottom last season, compared to 17th the year before, that meant a smaller share of the pay-out from the Premier League's broadcasting agreements.

What exactly are Villa's assets?

The club put £79.6m of the £81m loss down to "exceptional items" including the "impairment of tangible fixed assets and intangible assets".

Intangible assets, which include the value of its players' registrations, dropped by £34.8m.

Tangible assets include property and equipment the club owns.

The impact of Dr Tony Xia's takeover of the club for £76m will not show until the 2016-17 accounts are published next year.

The new Villa owner completed his takeover on 14 June 2016, two months after the Football League and Premier League co-founders' first relegation in 30 years.

 

[Rugrat]

The club put £79.6m of the £81m loss down to "exceptional items" including the "impairment of tangible fixed assets and intangible assets".

Intangible assets, which include the value of its players' registrations, dropped by £34.8m.

Tangible assets include property and equipment the club owns.

Yes that's where I saw it and it's the piece above that I don't really get. It may well be that there is some weird formula that is ascribed to player values (we all know that Villa players are worth SFA anyway) so they had to take a uber hit on ammortisation maybe. Also how property declines in value by £45M in one year suggests either a massive over valuation (but how would they get away with that) or maybe Xia has sold something off ... don't know but all rather odd on the face of it

 

[Marshy]

No Club should lose money in the Premier League.

If we make it up I would be very dissapointed if Tony had to continue to fund the club from his own pocket.

 

[spence]

I'll be very interested in there accounts next season as they will still be in the Championship. They spent heavily in the summer hoping to bounce back straight away.

 

[Surf's Up]

Accountancy Its all smoke and mirrors!

 

[Albumen]

They cant afford to sack Bruce.

 

[Ernest]

They bought a load of over priced foreign players on massive wages who are now worth nothing but the wages have to be paid, then they repeated it again with the likes of Ross McCormack. I wonder how long till they are in administration as a means to get out of the debt ?

 

[Pavilionaire]

This is same year that Villa brought in former FA Chairman David Bernstein and former Governor of the Bank of England Mervyn King as directors, King lasting just 75 days and Bernstein 39 days, both bailing out when the club got relegated.

If Villa don't bounce back to the Prem next season then we could be looking at another Leeds Utd situation.

 

[Gwylan]

If Villa don't bounce back to the Prem next season then we could be looking at another Leeds Utd situation.

And, let's face it, they're hardly likely to, they're more concerned about avoiding relegation.

I shudder to think what next year's losses are likely to be if they're losing money in PL.

 

[Pavilionaire]

Villa have done exactly what you'd expect from a club owned by a 42-year old Chinese businessman who knows nothing about football - bring in a name manager in who turns out to be sh1t (Di Matteo), then get in an expensive but proven manager (Bruce) and stack the squad with expensive but proven Championship players.

I'm not surprised it hasn't happened for them this season as there have been so many fundamental changes, but if they can knit together in the remaining games of this season I fancy they will contend in 2017/18. Bruce needs to weed out the bad apples and get a settled squad.

 

[Goldstone1976]

Accountancy Its all smoke and mirrors!

To an accountant: "what's 2+2?". "What would you like it to be?"

In the interest of balance...

To an engineer: "what's 2+2?". "Approximately 4; let's call it 26 to be safe".
To a salesman: "what's 2+2?". "Whatever gets me a purchase order".
To a teacher: "what's 2+2?". "We covered that last week. Do some revision".
To a philosopher: "what's 2+2?". "interesting question. First, we need to define '2' and '+' ".

...and so on.

 

[LlcoolJ]

I've not seen the accounts but it'll be interesting to see what the £45m write down of tangible assets actually is. Could just be that property was overvalued in the accounts for ages and it was revalued to the correct figure ahead of the takeover (or something like that). Anyway, I look forward to someone properly dissecting it all.

 

[KZNSeagull]

I am no accountant, but that looks like a paper loss rather than an actual loss to me (ie they have written down the perceived price of their assets, rather than spent loads of money they do not have).

The PL have a rule now that only 55%ish of the tv money can be spent on wages (This is the rule that lot up the road are trying not to fall foul of). So 45% of the tv revenue is available for other expenditure, so any club would be hard pushed to actually make a real loss in the PL unless they are rebuilding the ground or something. Therefore, if TB wants to get some of his money back when we get there, I am sure that he will be able to without drastically impacting the operation of the club. That is my understanding anyway, probably wrong.

 

[CHAPPERS]

It would be interested to see how long the contracts players like McCormack have managed to get themselves. Would not be surprised if they have real issues in the next two years, no way they will go up next year.

 

[Rugrat]

I've not seen the accounts but it'll be interesting to see what the £45m write down of tangible assets actually is. Could just be that property was overvalued in the accounts for ages and it was revalued to the correct figure ahead of the takeover (or something like that). Anyway, I look forward to someone properly dissecting it all.

I thought that about over valued property but surely their accountants wouldn't have signed off

Yes it would be interesting to see what's what

 

[LlcoolJ]

but surely their accountants wouldn't have signed off

Really? LOL. [emoji6]

 

[Rugrat]

Really? LOL. [emoji6]

Well I get 'adjustments' but that looks way more than that .. something in region of 30-40% maybe even more. If they were overvaluing to that extent I'd have thought there would have been severe penalties. I'm not an Accountant but putting a signature to accounts with such a massive over valuation would be 'life threatening' I'd have thought

 

[lizard]

Portsmuff mkII?

 

[Gwylan]

.
To a philosopher: "what's 2+2?". "interesting question. First, we need to define '2' and '+' ".

Funnily enough, I wrote nearly 20,000 words on that subject for my degree dissertation ... it's a very interesting question