Matt Damon
Player Valuation: £60m
FCB's financial difficulties should be a salutary reminder of not relying too much on an endless bonanza of TV money.....
http://andersred.blogspot.com/2010/07/be-sure-to-be-prudent-fc-barcelonas.html
Having shocked the sporting world by failing to pay their players in June (and announcing they needed to take out a €150m bank credit facility), FC Barcelona went further today with the announcement of major adjustments to their previously published (although unaudited) results for the year to June 30th 2010.
The unaudited results had been published by the previous Treasurer, Xavier Sala i Martin on 30th June 2010 and showed EBITDA of €96m and net profit of €9m on turnover of €446m. The new President (Sandro Rosell) and his executive management have agreed substantial changes to the audited accounts with the club's auditors Deloittes. The changes generally relate to judgments about what revenue and costs to recognise, with the Rosell management and Deloittes taking a far more prudent approach than the previous board.
The official FCB statement talks of a higher revised debt number of €442m (and €552m "gross debt"), compared to the originally published figure of €326m. From a normal IAS (or UK GAAP) accounting perspective, this is misleadingly high, as Rosell and his team like to include all sorts of short term liabilities in their numbers (such as prepayments). We will have to wait for the full accounts to see the true debt position.
FCB's financial difficulties should be a salutary reminder of not relying too much on an endless bonanza of TV money.....
http://andersred.blogspot.com/2010/07/be-sure-to-be-prudent-fc-barcelonas.html
Having shocked the sporting world by failing to pay their players in June (and announcing they needed to take out a €150m bank credit facility), FC Barcelona went further today with the announcement of major adjustments to their previously published (although unaudited) results for the year to June 30th 2010.
The unaudited results had been published by the previous Treasurer, Xavier Sala i Martin on 30th June 2010 and showed EBITDA of €96m and net profit of €9m on turnover of €446m. The new President (Sandro Rosell) and his executive management have agreed substantial changes to the audited accounts with the club's auditors Deloittes. The changes generally relate to judgments about what revenue and costs to recognise, with the Rosell management and Deloittes taking a far more prudent approach than the previous board.
The official FCB statement talks of a higher revised debt number of €442m (and €552m "gross debt"), compared to the originally published figure of €326m. From a normal IAS (or UK GAAP) accounting perspective, this is misleadingly high, as Rosell and his team like to include all sorts of short term liabilities in their numbers (such as prepayments). We will have to wait for the full accounts to see the true debt position.
FCB's financial difficulties should be a salutary reminder of not relying too much on an endless bonanza of TV money.....
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