And through the school of life with honours mate
1 Like
Heāll need to get to the bottom of things first.
1 Like
Well run club, my arse.
1 Like
You say that, butt, we always make a profit
1 Like
Consulted google to help my understanding so this is how Directors of a company are compensated, either through fees, salary, or through other benefits with approval from the companyās shareholders, the board of directors, and in some circumstances, designated committees.
So do we get clarity on if this is salary or top up of a salary ?
Itās just an inflationary increase - nothing strange in it. Their salaries will be set by the Board of Directors
1 Like
You know what that Dutton bloke did to our play off chances. Rectum!
1 Like
The cheek!
At least he had a crack at it.
From the survey on another thread most people now hoping he gets the bumās rush
When weāre allowed back in we need to set up a band to lead the singing. Others have their drums and vuvuzelas, but all weāll be able to get will be a rusty trumpet.
Since it can never be tested, Iām not surprised!
Todayās quiz question - what (post WW2) World Cup record is held by the stadium used to host the 1962 Final (and why)?
1 Like
Youāre right. Facts are overrated and ruin lots of good arguments. My contention that the current Women world champions would have won the menās 1962 World Cup can therefore only provoke debate rather than an answer. Which is far better.
All I know on the ground is that it was Santiago and was subsequently used by the military junta as a detention centre for folk who disagreed with it.
1 Like
Iām not sure why, or how we manage to make a profit every year, but it does seem to be vanity as thereās little benefit in posting a profit when it is so small.
It just seems to play in to the hands of the āwell run clubā soundbite, but also conveniently the āwe have to keep the purse strings tightā narrative.
Whilst we almost always make a profit, it is never big enough to warrant significant investment in subsequent years.
What I find strange, coming from a position of intermediate understanding of accounting, is how we manage to balance the revenue to costs in such an agile manner. 2019-2020 is a good example of this - we lost a significant chunk of revenue unexpectedly (canāt remember, but off the top of my head Ā£1m), but still managed to maintain our cost-revenue ratio.
Others may know more how we managed this - but for me this points to a lot of flexibility in our key costs. Long contracts donāt allow for flexibility, hence why we never dish out decent contracts to decent players. Contract value also - do we, for instance, run predominantly heavily incentivised contracts with flexible bonus terms?
Iām no financial adviser but havenāt we made a profit whilst lending money from various places?
Bit like if I owed one mate Ā£100, then asked two other mates if I could borrow Ā£75 each, then paid him his Ā£100 and claimed to be in profit by Ā£50?
1 Like
Thereās every chance we have done that, but taking out a loan doesnāt inflate your turnover or profit, it just adds to your liabilities. The profit shown in those accounts will theoretically just be your income revenues Vs cost of sales/expenses for that year.
Doesnāt quite work like that. Thereās an operating profit which shows how much money you made or lost from trading activities, and thereās a balance sheet which shows the value in the club. The Ā£25k simply refers to how much more money we brought in, versus how much we paid out during the year (including rent, loan repayments etc). And obviously loans can run across many financial years bla bla.
Then it gets complicated because the lease on the stadium is given a monetary value (roughly Ā£5.5m from memory) on the balance sheet, because itās treated as an asset, even though we pay to rent it, pay for itās upkeep, canāt unilaterally decide we dont want to rent it any more, and donāt have the option to sell it to cash in on itās value.
Ironically, itās the stadium that keeps us from being insolvent, because itās value is added to the clubs total assets, but at the same time, itās the long-term costs of renting the stadium that mean the club cannot make significant capital investment (like buying players, or handing out longer term contracts).
2 Likes
How weāve posted a profit whilst losing so much revenue is beyond me!
Fair play mind.
Luckily, a Ā£47k reduction in depreciation on tangible assets saved the day.
Dains are worth every penny of their Ā£6k(!) audit fee.
1 Like
Thatās actually reasonable to cheap for an Audit of our size (and I work for the competition).
They do get a fair bit of exposure from it though so I guess itās swings and roundabouts with that fee.
2 Likes