rbr 1,247 Posted March 4, 2013 Share Posted March 4, 2013 http://celticnewco.livejournal.com/3222.html Hopefully someone can copy and paste this , bloody iPad won't let me do it . 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,353 Posted March 4, 2013 Share Posted March 4, 2013 the article that rbr refers to...not written by me! Okay guys. Sorry for the very quick breakdown but felt it was important to get this out therefore the scaremongers started causing trouble again. For those who are used to looking at accounts feel free to have a look at them (http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11506139) and engage in a discussion with myself on twitter if you so choose (@celticareanewco) Most fans though just want to know the bottom line and I hope to be able to explain this to everyone as well as raising some questions that I have from the accounts. Okay here is the money we have generated thus far: Gate receipts and hospitality (to December 31) £6,411,000 Sponsorship & Advertising £381,000 Broadcasting £391,000 Commercial £552,000 Retail and merchandise £941,000 Other income sources £848,000 Total £9,524,000 The club have another £8,117,000 sitting in the bank for deferred gate receipts. Basically what this means is that if you purchased a season ticket for £300 and the accounts are being published halfway through the season then only £150 of your season ticket money will show up on the balance sheet. It’s an accounting practice that a lot of clubs don’t follow hence you normally find a club makes a profit for the first six months then a big loss for the second six months so this is something I like. I also like it as we could easily have put a false position on our accounts and declared a £1m profit rather than a £7m loss if we just put all this money on the balance sheet. So on top of that money we have generated – a total of approx £17.5m – we have the share money of £22m which leaves us a total of £39.5m. We still have £21m sitting in the bank so the club has spent £18.5m this last six months. Where has this money went? Purchase of assets from administrators £6,750,000 Purchase of intangible assets £1,276,000 Purchase of property and plant £2,161,000 Repayment of Oldco debts £2,832,000 Player purchases £609,000 Staff costs £4,000,000 Property costs £1,000,000 Total £19,628,000 This shows that the money coming in matches what is going out and therefore despite what lies may be pedalled by those on the other side of the city everything, financially speaking, is above board. So what are we looking at for end of year figures? I’d imagine end of year turnover will be in the region of £20-22m and expenditure will be £30-32m giving a loss of £10m. Although this initially appears worrying a lot of our expenses this year – purchase of property/purchase of assets from administrators/repayment of oldco debts – are one of fees so in reality we are breaking even in SFL3. So starting from next year we would expect to break even plus have £20m in the bank. This is a position that we should all be very comfortable with. There is however one area where I would really question the accounts… Why is the club now having to pay for the purchase of assets from the administrators? The original investors paid for the assets and have already saw the value of shares from the purchase increase by 600%. Surely the club should not be saddled with paying back this money? I find it wrong that fans have invested £14m in gate receipts and £5m in shares and own just 10-15% of the club whereas the original investors have put in £5.5m and now own 60-65% of the club between them. I suppose that’s just the way of the world though… 0 Quote Link to post Share on other sites More sharing options...
rbr 1,247 Posted March 4, 2013 Author Share Posted March 4, 2013 Bluedell do you agree with this breakdown as a fairly honest appraisal of the accounts for us less financially astute fans 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,353 Posted March 4, 2013 Share Posted March 4, 2013 Bluedell do you agree with this breakdown as a fairly honest appraisal of the accounts for us less financially astute fans Nope. I may make a few comments later. 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted March 4, 2013 Share Posted March 4, 2013 Boss seems happy with it all on RM. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,353 Posted March 4, 2013 Share Posted March 4, 2013 Most fans though just want to know the bottom line and I hope to be able to explain this to everyone as well as raising some questions that I have from the accounts. Okay here is the money we have generated thus far: Gate receipts and hospitality (to December 31) £6,411,000 Sponsorship & Advertising £381,000 Broadcasting £391,000 Commercial £552,000 Retail and merchandise £941,000 Other income sources £848,000 Total £9,524,000 The club have another £8,117,000 sitting in the bank for deferred gate receipts. Basically what this means is that if you purchased a season ticket for £300 and the accounts are being published halfway through the season then only £150 of your season ticket money will show up on the balance sheet. Not strictly correct. There are 18 home league games and we had played 8 by the end of December so we will have accounted for 8/18s of the income. Itâ??s an accounting practice that a lot of clubs donâ??t follow hence you normally find a club makes a profit for the first six months then a big loss for the second six months so this is something I like. Incorrect. I very much doubt that any club doesn't not follow what we have done. I also like it as we could easily have put a false position on our accounts and declared a £1m profit rather than a £7m loss if we just put all this money on the balance sheet. No we couldn't. The auditors would not have signed off on that. So on top of that money we have generated â?? a total of approx £17.5m â?? we have the share money of £22m which leaves us a total of £39.5m. We still have £21m sitting in the bank so the club has spent £18.5m this last six months. Where has this money went? Purchase of assets from administrators £6,750,000 Purchase of intangible assets £1,276,000 Purchase of property and plant £2,161,000 Repayment of Oldco debts £2,832,000 Player purchases £609,000 Staff costs £4,000,000 Property costs £1,000,000 Total £19,628,000 I'm a bit bemused by this breakdown. Operating expenses were £15.7 million. The first 5 items would not be included in operating expenses so the numbers don't add up. This shows that the money coming in matches what is going out and therefore despite what lies may be pedalled by those on the other side of the city everything, financially speaking, is above board. Only because you appear to have ignored a chunk of expenditure. So what are we looking at for end of year figures? Iâ??d imagine end of year turnover will be in the region of £20-22m and expenditure will be £30-32m giving a loss of £10m. Although this initially appears worrying a lot of our expenses this year â?? purchase of property/purchase of assets from administrators/repayment of oldco debts â?? are one of fees so in reality we are breaking even in SFL3. We really aren't breaking even. We made an operating loss of £7m. Not all the expenditue may be reoccuring in future years and income should increase but we are a bit away from breaking even based on these figures. So starting from next year we would expect to break even plus have £20m in the bank. This is a position that we should all be very comfortable with. There is however one area where I would really question the accountsâ?¦ Why is the club now having to pay for the purchase of assets from the administrators? The original investors paid for the assets and have already saw the value of shares from the purchase increase by 600%. Surely the club should not be saddled with paying back this money? I find it wrong that fans have invested £14m in gate receipts and £5m in shares and own just 10-15% of the club whereas the original investors have put in £5.5m and now own 60-65% of the club between them. I suppose thatâ??s just the way of the world thoughâ?¦ I'm not sure what cash he is saying should be paid back. Investors put in a total of £30.8m so again the sums don't add up. 0 Quote Link to post Share on other sites More sharing options...
foggy dewhurst 0 Posted March 4, 2013 Share Posted March 4, 2013 as my old report card would have said could do better 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted March 4, 2013 Share Posted March 4, 2013 as my old report card would have said could do better Staff and players would have probably needed cut to do much better. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,353 Posted March 4, 2013 Share Posted March 4, 2013 Boss seems happy with it all on RM. Boss is probably happy with the accounts (not sure, I haven't really read his comments) but he'd be more scathing than me about the above article. 0 Quote Link to post Share on other sites More sharing options...
GovanAllan 0 Posted March 4, 2013 Share Posted March 4, 2013 We always knew these figures wouldn't be that great, its next years I'm really interested in seeing. 0 Quote Link to post Share on other sites More sharing options...
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