Club finances

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It's not debt, it's equity. There's no repayment date and no interest. I wouldn't worry about it too much, will be easily cleared once Usmanov comes in. What's important is that we have money to buy players and improve and challenge with the best. It won't happen overnight and that's probably a problem for some, but we are going forwards now, not backwards like we have done previously.
 
It's not debt, it's equity. There's no repayment date and no interest. I wouldn't worry about it too much, will be easily cleared once Usmanov comes in. What's important is that we have money to buy players and improve and challenge with the best. It won't happen overnight and that's probably a problem for some, but we are going forwards now, not backwards like we have done previously.
But it's still money that is owed to him, an interest free loan is still a loan.

Similar to Chelsea he has loaned them 1.1bn but he can sell the club for between 2-3bn so he still makes a profit.
 
Three main thing things leap out of these numbers:

1) the next set of accounts are likely to show a genuinely frightening loss, one driven not primarily by exceptional items but instead by us living beyond our current means as we chase the top 6. The following year will likely be worse again.

2) we are very very reliant on Moshiri if we don't want to have to cut back hard.

3) The gap to revenue parity with the top 6, even Spurs, looks almost insurmountable even with a new stadium at some stage in the future. Ergo, if top 6 consistently is genuinely the aim, we are going to be reliant on Moshiri to plug part of the gap for the foreseeable future.

Now that is all fine so long as Moshiri is committed.

On pitch results like today do leave me nervous though.

He may have fallen for us hard and/ or even see millions to be made from dockyard redevelopment but somewhere there has to be a limit to this commitment. Millions and millions spent window after window with no discernable improvement and little love coming back off the terraces would test the resolve of even a die-cast blue by birth. He isn't that and as we've seen elsewhere, Sunderland and Villa most recently, owners can get disinchanted where progress is scant and hope for competing at the top is slim.

If he does ever walk away things will be challenging Indeed.
 

He put in an additional £100m post the date of the accounts. If the club is to maintain the current level of investment in the squad, he is presumably going to have to do that every year (at least until the new stadium in completed or the club achieves CL status).
 
I don’t profess to to know a lot about finance, I usually leave that to @Steve0, he seems to be somewhat of an expert, but came across this on my Twitter. Don’t like the look of it.

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I don’t profess to to know a lot about finance, I usually leave that to @Steve0, he seems to be somewhat of an expert, but came across this on my Twitter. Don’t like the look of it.

View attachment 52239

It's a doomsday interpretation of our finances. Lfc aren't far behind and he's interpreted their finances favourably.

A more honest appraisal of both clubs sees one club far deeper in the hole than the other. Hint, it's the one owned by profit seeking yanks.

Like you say, you don't know much about finance so ill forgive you.
 
Three main thing things leap out of these numbers:

1) the next set of accounts are likely to show a genuinely frightening loss, one driven not primarily by exceptional items but instead by us living beyond our current means as we chase the top 6. The following year will likely be worse again.

2) we are very very reliant on Moshiri if we don't want to have to cut back hard.

3) The gap to revenue parity with the top 6, even Spurs, looks almost insurmountable even with a new stadium at some stage in the future. Ergo, if top 6 consistently is genuinely the aim, we are going to be reliant on Moshiri to plug part of the gap for the foreseeable future.

Now that is all fine so long as Moshiri is committed.

On pitch results like today do leave me nervous though.

He may have fallen for us hard and/ or even see millions to be made from dockyard redevelopment but somewhere there has to be a limit to this commitment. Millions and millions spent window after window with no discernable improvement and little love coming back off the terraces would test the resolve of even a die-cast blue by birth. He isn't that and as we've seen elsewhere, Sunderland and Villa most recently, owners can get disinchanted where progress is scant and hope for competing at the top is slim.

If he does ever walk away things will be challenging Indeed.

Good post, i agree whole heartily.

I make our next loss in and around 40 million mark, unless something drastic happens with outs before May. I think we are maybe then in a scenario at looking to sacrifice a player to balance the books, assuming another investment isn't made.

Like you i tend to think there will come a limit of Moshiris commitment to the playing side, that may come in and around the stadium financing in my opinion. In terms of internal revenue we have broke the Chinese piggy bank to the tune of 40 million and financed other deal on the back of the Stones and Lukaku promissory notes. Its all a recipe for unsuitability, given we are making an ever increasing loss in doing that.

Simply put the scenario we have seen up to this point isnt sustainable without being drip fed by the owner and there is a life span on that i would assume. A measure of self-sustainability needs to creep back into the business or regression is inevitable. Hopefully we have one or two clever commercial deals up our sleeve.
 

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