The Accounts are out.

[JUAN PABLO]

So, according to those figures we are on track then ?
Good.

Reading between the lines, it was the last year of being up shit creek and this year we've got a paddle.

That's what i thought. A decent sized paddle as well.

we might get an engine for it next year and maybe one in midfield for the team too

[brian green]

Owners who will make a lot of money from selling their club are Gold and Sullivan.   The ink will not be dry on the olympic park lease before they start unpicking it and Upton Park starts to sprout - what was it that Dutch politician said about property development? "ticky tacky rabbit hutches built for midgets" - spec housing.

[danlanza]

It's always amazed me when people doubt Randy's good will. His competence, sure. His long term plans, I can see the discussion. But whenever people say that he's just trying to make money out of the club I think they're just repeating a cliche about foreign owners which they've seen in the papers. Randy has never been less than exemplary off the pitch - it's on the pitch where his decisions have been disastrously odd.

Indeed. He really does deserve a bit of good luck on the managerial front. Hopefully he'll see sense and choose well in the summer.

As for Paulie's concerns about Randy not being at games, I still believe it's for family reasons, specifically his younger son, rather than not wishing to travel so far to see firsthand the dross we turn out every week.

He used to sit in the executive box behind me in the Trinity and he sometimes had his young son with him anyway. The kid was a Villa nut who used to go ballistic when we scored. Plus he's got a private jet for crying out loud.

Can i just say this please ? He also has other massive buisness interests in the USA that might just keep him away from every home game.
Just an observation that's all.
We would all like to see him at more games at Villa. Just because he is not there doesn't mean he does not give a toss.
He has given Lambert the game plan. If Lerner thinks it is not working then he will pull the trigger, no doubt. Look at the amount of coaches he went through at the Cleveland Browns. He is certainly not scared of getting rid of people who do not step up to the mark. Just a thought.

[Fergal]

Can some financial geek on here tell me what Loans converted to equity means please.

[danlanza]

Can some financial geek on here tell me what Loans converted to equity means please.

Right, here we go.  .
I hope that makes things clear for you.

[AV82EC]

Can some financial geek on here tell me what Loans converted to equity means please.

I'm no accountant but I think it means what loans we owe him he has converted into shares in the club, in effect making the "value" of the club higher or diluting the value of his existing shareholding.  In effect Randy owns 100% of the shares and he will value those at say £110million, when he converts the debt to equity he is in effect saying my 100% is worth £200m.

[Whiney MacWhineface]

Can some financial geek on here tell me what Loans converted to equity means please.

You own 100% of a company. You then loan it a ton of money to keep it afloat. The company owes you that money. You then decide to issue a shitload of extra shares in that company, and buy them yourself. Effectively you've bought your own debt back, leaving the company debt-free and you the poorer.

[Whiney MacWhineface]

And he's done it on several occasions in the past, as well as waiving loan interest and making interest-free loans.

[aj2k77]

Well it will still include Ireland's, Bents, Huttons, Dunns, Givens salaries.

Bent, Given and Hutton are still with us though. Am I over worrying? I thought we'd be a lot closer to breaking even not £42m of losses. How significant are the losses?

[BC54 VFC]

Loans are classed as debt, which may carry interest which has to be paid / serviced, albeit starting with the financial year ending 05/09 Randy waived his entitlement to interest. Equity equates to an owners investment in the business, which may or may not entitle the owner(s) to a dividend in relation to their proportion of ownership, in this case very highly unlikely with continuing losses. The debt to equity swap means that the gearing, being ratio of debt to net tangible assets, has considerably improved, and the potential for future interest charge on the profit & loss account is vastly reduced, thus giving better potential for profits in future years, although it could be argued there will be no real effect in view of the previous interest waiving.   

[olaftab]

Can some financial geek on here tell me what Loans converted to equity means please.

Right, here we go.  .
I hope that makes things clear for you.

You are a genius. You make it so simple for financial numpties  like me to understand the business world.

[Steve67]

Randy must be reeeaaaalllly pleased with Lambert spunking over £40 mill of his money on mostly shite playing staff then!!

[PeterWithesShin]

Randy must be reeeaaaalllly pleased with Lambert spunking over £40 mill of his money on mostly shite playing staff then!!

Considering if we sold them all tomorrow we'd make a profit I doubt he's in tears.

[Fergal]

Can some financial geek on here tell me what Loans converted to equity means please.

You own 100% of a company. You then loan it a ton of money to keep it afloat. The company owes you that money. You then decide to issue a shitload of extra shares in that company, and buy them yourself. Effectively you've bought your own debt back, leaving the company debt-free and you the poorer.

So how does that affect the financial fair play rules?

[Steve67]

Randy must be reeeaaaalllly pleased with Lambert spunking over £40 mill of his money on mostly shite playing staff then!!

Considering if we sold them all tomorrow we'd make a profit I doubt he's in tears.

No chance.  Benteke apart, maybe Vlaar, the rest?  Really?  Kozak, Luna, KEA.  Have you been drinking lol.