Let's Stick Together

[Frankie 8,150]

How much on transfers did we spend in the summer of 06/07 mate (after July obviously)?

 

Won't the Cuellar/Cousin money be crossed out by the purchases of Davis, Mendes and Edu?

[Bluedell 5,329]

Shroomz, my take on it is that the bank are happy to allow us to operate within existing limits but are refusing to give any additional lending.

 

I doubt they are putting on any serious pressure to reduce current levels as things would be even more serious than they appear to be.

 

I have also heard something similar to Frankie, in that SDM was well aware of banking problems before the start of the season.

[Bluedell 5,329]

How much on transfers did we spend in the summer of 06/07 mate (after July obviously)?

 

Won't the Cuellar/Cousin money be crossed out by the purchases of Davis, Mendes and Edu?

 

Let's say Cuellar made us a �£5.5m profit and Cousin �£1m.

 

Davis, Mendes and Edu cost us, say �£8m but their costs will be written off over the lengths of their contracts which could be �£1m for a 6 month period.

 

That's a net gain of �£5.5m.

 

That's purely accounting and is totally different from cashflow, but the 6 months' results only gives us a profit and loss account.

 

Can't remember how much we spent in the summer of 2006. That'd be PLG's signings of Sebo, Sionko, papac etc, but again their costs would be written off over a period of time, and I don't think that we made much profit from the sale of players.

[Frankie 8,150]

Conclusion for the non-accountants...?

[Bluedell 5,329]

Non-accountants shouldn't attempt to estimate the profit or loss.

[Zappa 0]

Shroomz, my take on it is that the bank are happy to allow us to operate within existing limits but are refusing to give any additional lending.

 

So can we assume that we'd like to bring in a few million in this transfer window because SDM literally doesn't have the cash flow to inject that would have made it a non-issue?

[Frankie 8,150]

Non-accountants shouldn't attempt to estimate the profit or loss.

 

I walked into that.... :box:

[Bluedell 5,329]

So can we assume that we'd like to bring in a few million in this transfer window because SDM literally doesn't have the cash flow to inject that would have made it a non-issue?

 

Yes, although even if he had the cash I'm not sure that he would lend it to us, as he has tended to allow the club to stand or fall on its own, and only puts in cash when there are share issues.

[Bluedell 5,329]

Conclusion for the non-accountants...?

 

Difficult to say, but it could be a million either side of break-even?

[calscot 0]

The conclusion in basic terms I'm getting from the "need to sell one player" claim is that we're on our overdraft limit and with the state of the banks now, they are politely saying, "please don't try to increase your overdraft", but we are looking down the barrel of say a 3M loss and therefore 3M increase in overdraft.

 

We therefore need 3M to offset the loss to keep within our credit limit - and SDM is not going to stump it up.

 

I think we can only assume that somehow the management didn't foresee the extent of the current credit squeeze back in the summer and were recklessly and arrogantly counting the CL chickens before they had hatched.

 

The 9M purchases of Miller, Lafferty, Edu and Velicka look more and more stupid every week.

 

Although the 8M invested in Bougherra, Mendes and to a lesser extent Davis looks more sound.

 

In the end there was no way our cashflow could afford 17M, even with the 9.3M sales of Cuellar and Cousin.

 

The fact we didn't offload enough players and sent the wages through the roof is also very bad planning.