Charles Green Dubai meeting

[kuznetsov 0]

Debt and profit are completely different things.

 

We can make a loss of 10 million but if we are sitting on 20 million of cash we still dont have debt.

 

Just saying.

 

how can we post a 10 million loss yet have 20 million in the bank mate? would that not simply be 10 million profit?

[simplythebest 0]

The usual soundbites.

 

How should the questions have been answered differently?

[BlueMazza 0]

I dont' understand his comments about people coming back to the club? Laudrop? Smith?

 

Did he mean he doesn't envisage any more?

Did he forget?

 

Generally I like Green enough but sometimes the shit he says freaks me out as I do question everything else.

[kuznetsov 0]

How should the questions have been answered differently?

 

he could have been honest.

[simplythebest 0]

he could have been honest.

 

I don't know where the lies are.

 

To be fair I think he'd be as well stopping these sessions, despite asking for fan engagement for so long all folk seem to be doing is moaning about them.

[Zappa 0]

· Heâ??s trying to look at the bigger picture looking at opportunities for Academies in Far East and Australia

 

Get our own youth system at Auchenhowie running like a million dollar gem-studded Swiss watch, then consider opening Academies overseas.

 

· He then went on to talk about the finances of the club and says that Rangers, under his tenure, will never have any debt.

 

Is that another way of saying banks won't lend the club money?

 

· He is looking at opportunities to build a communications platform that will â??blow your mindâ??

 

This must involve vortex mechanics and black hole communication.

 

· He believes the Rangers turnover could get to £100m without TV

 

Nurse!

 

· The discussed £10m transfer pot is real

 

I can see an empty pot with "£10m transfer pot" written on it.

 

· Rangers are looking at ways to remove the 3 Year Euro ban and are very interested in looking cross border leagues.

 

Here we go... Cross border leagues, moving to England.... okay doky!

[kuznetsov 0]

I don't know where the lies are.

 

To be fair I think he'd be as well stopping these sessions, despite asking for fan engagement for so long all folk seem to be doing is moaning about them.

 

i was only joking mate, i thought wee smiley face would have told you that.

[craig 5,199]

how can we post a 10 million loss yet have 20 million in the bank mate? would that not simply be 10 million profit?

 

No.

 

Debt is a balance sheet item. It is a liability.

Profit is an income statement item and is the difference between revenue and expenses, essentially.

 

1. If you start with 20 million cash you have a 20 million ASSET on your balance sheet. You have NOTHING on your income statement as you havent done anything yet, no expenses made, no revenues etc etc. You have that 20 million cash asset and, given this was through an IPO, you would have 20 million in capital (share capital plus share premium)

2. You then start trading.... and you have 10 million of NET expenses. For example, lets say we had revenue of 20 million but expenses of 30 million. You have a loss of 10 million. Still with me ?

3. IF, and this isnt necessarily the case, everything is on a cash basis (ie. you have no bank overdraft, no DEBT facility, no redit facility) then your 20 million starting cash would increase by 20 million for the revenue, so now 40 million. It would then decrease by the 30 million expenses, leaving you with CASH of 10 million.

 

You would, essentially, have 10 million of cash, ZERO debt and a loss in the income statement of 10 million.

 

If you didnt arrest the losses then at some point you would have no cash left and would have to take on debt or, heaven forbid, wind the company up.

[kuznetsov 0]

No.

 

Debt is a balance sheet item. It is a liability.

Profit is an income statement item and is the difference between revenue and expenses, essentially.

 

1. If you start with 20 million cash you have a 20 million ASSET on your balance sheet. You have NOTHING on your income statement as you havent done anything yet, no expenses made, no revenues etc etc. You have that 20 million cash asset and, given this was through an IPO, you would have 20 million in capital (share capital plus share premium)

2. You then start trading.... and you have 10 million of NET expenses. For example, lets say we had revenue of 20 million but expenses of 30 million. You have a loss of 10 million. Still with me ?

3. IF, and this isnt necessarily the case, everything is on a cash basis (ie. you have no bank overdraft, no DEBT facility, no redit facility) then your 20 million starting cash would increase by 20 million for the revenue, so now 40 million. It would then decrease by the 30 million expenses, leaving you with CASH of 10 million.

 

You would, essentially, have 10 million of cash, ZERO debt and a loss in the income statement of 10 million.

 

If you didnt arrest the losses then at some point you would have no cash left and would have to take on debt or, heaven forbid, wind the company up.

 

thanks for that craig. to think i done economics at school too! i obviously never listened well enough.

[craig 5,199]

thanks for that craig. to think i done economics at school too! i obviously never listened well enough.

 

Economic profits is tougher to understand than accounting profits. The economists dont even balance the books.....