It's that time of year again!

[Risso]

Assuming we stay up, forget all the crap, we are a big club with big potential , we have the history and pedigree. We would easily fetch £300m in the mad world of Premier League football.

Based on what? In a considerably betterfinancial state less than 10 years ago we were worth £63m.

What justification is there to say anyonewould pay £300m?

Less than ten years ago we were sharing television revenue of approximately £1.6bn. Assuming we stay up we'd be sharing television revenue of just over £5bn.

In terms of the income that the club would generate, the amount would increase considerably so it's not unreasonable to assume that cost of the business that would generate that income should also increase.

You have to factor in debts and accumulated losses though, plus expenses and the chances of being around to enjoy the increased TV money over the next few years.  I don't think anybody would pay anything like £300m

I don't think they would either, but I'm pretty sure that if we were to be sold then our market value would be a significant increase on what was paid. I'd have said about £200m wouldn't be unfair.

I don't even think he'd get that to be honest.  It would probably take 3 - 4 years of the new Premier League deal to square off our combined losses, and there's no guarantee that we'll be in the Premier League for that long, or that the TV deal after this one will be as generous.  Even if we avoid relegation this year, our side isn't magically going to go surging up the table next year.  It still needs investment, and if Lerner isn't prepared to do that, as he showed quite clearly in January, then we're just delaying the inevitable.

[Risso]

Oh and the accounts STILL aren't showing on Companies House.

[Greg N'Ash]

Assuming we stay up, forget all the crap, we are a big club with big potential , we have the history and pedigree. We would easily fetch £300m in the mad world of Premier League football.

Based on what? In a considerably betterfinancial state less than 10 years ago we were worth £63m.

What justification is there to say anyonewould pay £300m?

Less than ten years ago we were sharing television revenue of approximately £1.6bn. Assuming we stay up we'd be sharing television revenue of just over £5bn.

In terms of the income that the club would generate, the amount would increase considerably so it's not unreasonable to assume that cost of the business that would generate that income should also increase.

You have to factor in debts and accumulated losses though, plus expenses and the chances of being around to enjoy the increased TV money over the next few years.  I don't think anybody would pay anything like £300m

I don't think they would either, but I'm pretty sure that if we were to be sold then our market value would be a significant increase on what was paid. I'd have said about £200m wouldn't be unfair.

I don't even think he'd get that to be honest.  It would probably take 3 - 4 years of the new Premier League deal to square off our combined losses, and there's no guarantee that we'll be in the Premier League for that long, or that the TV deal after this one will be as generous.  Even if we avoid relegation this year, our side isn't magically going to go surging up the table next year.  It still needs investment, and if Lerner isn't prepared to do that, as he showed quite clearly in January, then we're just delaying the inevitable.

aye. Lerner's net transfer spend since MON left is something like 8m or 2.3m per season. Lambert's 25m spend this season was basically covered by last season's sales. If it continues to form, then any spending in the summer will be funded by a big sale I reckon.

[Billy Walker]

I see Liverpool have reported a £40 million loss to go with a similar loss for last season. 

[aj2k77]

I read that our wage bill for last season was £70 million.... surely that cannot be correct? How is/was it still so high? This seasons accounts possibly wont be much better if you factor in smaller attendances again and drop in income and the addition of 7 new players against getting Warnock, Heskey, Cuellar and Collins off the wage bill. Similar loss again next year? Or slightly reduced?

[aj2k77]

According to this report http://soccerlens.com/finance-in-english-football-wage-disparities-between-the-divisions/92692/ before this season started the average wage of a premiership footballer was £22k per week, before bonuses (of which we should barely have paid any). If that equals £1.1m per season per player, assuming we had a squad of 25 senior players last season how do we fork out nearly treble what seems to be the average?

[silhillvilla]

Why do accountants struggle getting to grips with common sense.

[glasses]

Why do accountants struggle getting to grips with common sense.

Go on, why do accountants struggle to get to grips with common sense..?

[andyh]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

[Risso]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

Charging yourself interest isn't really the best investment idea I can think of.  The trust did it because it's a separate legal entity, and probably had reasons for showing that the loans were made at a commercial rate of interest.

[andyh]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

Charging yourself interest isn't really the best investment idea I can think of.  The trust did it because it's a separate legal entity, and probably had reasons for showing that the loans were made at a commercial rate of interest.

But, theoretically, I would still be taking money out of my football club in the way of interest and paying it into my own account, wouldn't I.
So I would still be making money out of my investment, wouldn't I.
Just asking like.

[pauliewalnuts]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

Charging yourself interest isn't really the best investment idea I can think of.  The trust did it because it's a separate legal entity, and probably had reasons for showing that the loans were made at a commercial rate of interest.

But, theoretically, I would still be taking money out of my football club in the way of interest and paying it into my own account, wouldn't I.
So I would still be making money out of my investment, wouldn't I.
Just asking like.

I can think of lots of reasons Randy Lerner deserves stick, but if you're seriously suggesting that he's taking money out of the club to line his own pockets, then, sorry, you must be nuts.

[andyh]

Just a question for the financial whizz kids out there.
If I had some serious money to invest, could I do ANY better than buy a football club, lend it shit loads of money, and then charge 20% interest ? This could potentially net me I dunno, maybe £15, £20 million per annum on my investment.

Would I be seen as a noble benefactor who loves football and his club, or as a cynical business man who is getting a whopping return on his investment?

Charging yourself interest isn't really the best investment idea I can think of.  The trust did it because it's a separate legal entity, and probably had reasons for showing that the loans were made at a commercial rate of interest.

But, theoretically, I would still be taking money out of my football club in the way of interest and paying it into my own account, wouldn't I.
So I would still be making money out of my investment, wouldn't I.
Just asking like.

I can think of lots of reasons Randy Lerner deserves stick, but if you're seriously suggesting that he's taking money out of the club to line his own pockets, then, sorry, you must be nuts.

I am merely asking a question, and wondering whether 20% interest on loaned money is the going rate.

[Ads]

Pop down Natwest in the morning and see if they will do you 7.9% on £200 million.

Let is know what they say.

[pauliewalnuts]

I am merely asking a question, and wondering whether 20% interest on loaned money is the going rate.

This will be the interest he waived in any case?