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Author Topic: Financial fair play  (Read 219863 times)

Offline TheMalandro

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Re: Financial fair play
« Reply #450 on: June 05, 2018, 10:34:14 AM »
"In a document on Companies House dated February 2, 48 hours after the transfer window shut, the club sold on future income due on Amavi and Sanchez to the Australian Macquarie bank"

From the Daily Record.

It's going to be a very interesting summer and season.


Offline ozzjim

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Re: Financial fair play
« Reply #451 on: June 05, 2018, 10:39:14 AM »
Which means we will have lost money on that. Sounds a bit odd. I'm sure there's an accountant or 2 that will tell us what the implications of it are.

Offline Risso

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Re: Financial fair play
« Reply #452 on: June 05, 2018, 10:50:45 AM »
"In a document on Companies House dated February 2, 48 hours after the transfer window shut, the club sold on future income due on Amavi and Sanchez to the Australian Macquarie bank"

From the Daily Record.

It's going to be a very interesting summer and season.



That sounds like a standard factoring arrangement to be honest.  Although I can't see where it's mentioned on Companies House to have a closer look.

Offline andyh

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Re: Financial fair play
« Reply #453 on: June 05, 2018, 11:19:46 AM »
I read a very valid point somewhere that said something along the lines of:-

“when the outcome of a single football match sends one club into financial nervana and the losing club into (what looks like) financial meltdown, then something is not right with the system”.

I think they are right.

Offline TheMalandro

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Re: Financial fair play
« Reply #454 on: June 05, 2018, 11:20:14 AM »
"In a document on Companies House dated February 2, 48 hours after the transfer window shut, the club sold on future income due on Amavi and Sanchez to the Australian Macquarie bank"

From the Daily Record.

It's going to be a very interesting summer and season.



That sounds like a standard factoring arrangement to be honest.  Although I can't see where it's mentioned on Companies House to have a closer look.

I can't see it either, weird.

Offline Risso

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Re: Financial fair play
« Reply #455 on: June 05, 2018, 11:30:26 AM »
It's not unusual for companies to take such measures to smooth cash flow when they know something is coming in, but for a company like Villa it's a little bit odd I'd say.  If Tony has got oodles of cash, why doesn't he just give the club a short term sub until outstanding transfer fee installments from other clubs are paid, rather than paying a percentage of the fee to a bank in factoring charges?

Offline sirlordbaltimore

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Re: Financial fair play
« Reply #456 on: June 05, 2018, 11:34:01 AM »


I know absolutely nothing about accounts, but that does sound a bit worrying to me

Offline AsTallAsLions

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Re: Financial fair play
« Reply #457 on: June 05, 2018, 11:37:02 AM »
Hmmm. Tony Tony Tony. What have you been up to.

Offline andyh

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Re: Financial fair play
« Reply #458 on: June 05, 2018, 11:39:18 AM »
If you know nothing about accounting why would anyone be worried about some accounting practices ?

Offline Risso

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Re: Financial fair play
« Reply #459 on: June 05, 2018, 11:42:05 AM »


I know absolutely nothing about accounts, but that does sound a bit worrying to me

Invoice discounting and factoring are used by companies to smooth their cash flow.  They basically sell their debts to the bank/factoring comany for a small percentage of the amount outstanding, in order to get the cash in more quickly.  It tends to happen where a company has say, 30 day payment terms with its customers, but has to pay staff or suppliers sooner than that.  You often see it where a small company is dealing with a much bigger one, eg Tesco suppliers, who are being held to difficult credit terms, eg 90 days, or smaller companies who are in their first few years of operation.  When I was an auditor for PwC, I used to audit a few factoring companies and banks who provided this sort of finance, and never saw a company like Villa using their services.  It's not necessarily a big deal, but you know, something else to make you go "hmmmmmm".

Offline Lastfootstamper

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Re: Financial fair play
« Reply #460 on: June 05, 2018, 12:10:58 PM »
The mirror have now picked up this story, with the added information that we weren't due the final instalment of €4m of the Amavi fee until July '19. We hadn't had the first one yet, either.

Online Drummond

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Re: Financial fair play
« Reply #461 on: June 05, 2018, 12:19:37 PM »
Hello Mirror journo. Nice to see you trawling around for stories

Offline pauliewalnuts

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Re: Financial fair play
« Reply #462 on: June 05, 2018, 12:26:07 PM »
It's not unusual for companies to take such measures to smooth cash flow when they know something is coming in, but for a company like Villa it's a little bit odd I'd say.  If Tony has got oodles of cash, why doesn't he just give the club a short term sub until outstanding transfer fee installments from other clubs are paid, rather than paying a percentage of the fee to a bank in factoring charges?

Indeed. It looks somewhat concerning.

Offline David_Nab

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  • Posts: 4260
  • Location: Luton
  • GM : 24.12.2015
Re: Financial fair play
« Reply #463 on: June 05, 2018, 12:27:54 PM »
Well it doesn't sound good does it .....

Online tomd2103

  • Member
  • Posts: 14172
Re: Financial fair play
« Reply #464 on: June 05, 2018, 12:28:06 PM »
I read a very valid point somewhere that said something along the lines of:-

“when the outcome of a single football match sends one club into financial nervana and the losing club into (what looks like) financial meltdown, then something is not right with the system”.

I think they are right.

Also something wrong with a system where billions of pounds are generated by a particular sport each year yet grassroots facilities in that sport remain a substandard in many cases. 

 


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