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Author Topic: End of year accounts  (Read 7080 times)

Offline Drummond

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Re: End of year accounts
« Reply #45 on: April 13, 2021, 10:39:35 PM »
There are clearly some intangibles. The attractiveness of a club is hard to value isn't it?

But don't you think that Villa are now far more attractive and would cost a lot more than we did when NSWE bought us, despite the losses?

Pretty much all the players we've bought have increased in value, yet on the books they won't show that way will they?

The name of Aston Villa is being noticed again, we're performing well and that in itself is attractive. The owners can write off the losses against tax elsewhere too, so a loss isn't necessarily a bad thing.
You said “they will want to increase the value of an asset rather than make a profit”
Which makes absolutely no sense whatsoever.
That’s why I asked you the question, which you obviously have a problem answering, so maybe stick to lecturing on political correctness and right on thinking.

A tad aggressive old bean. Imagine my post had been written by someone you don't have a problem with and then it might make sense.

The owners don't mind making a loss in a year if overall the value keeps increasing. Which it will, and is.

I'm sorry you don't understand my point and that what I'm saying doesn't make sense to you.

As an example spend a bit of time on Transfrmarkt.. Most of the players we've signed have increased in value (in their view obviously, but I'd imagine many others' too) since we've bought them, though that won't be shown in the accounts anywhere, though their cost will. The asset may show too but it won't have increased in value.

The appearance of the club and reputation and place in the Premier League will have an effect on the value of the club as an asset worth selling, even though there is a trading loss to get us there.

The next TV deals will be worth a lot, which will add value again. They got us on the cheap when we were at a very low ebb and the money they've pumped in so far will not be a problem to recoup of they decide to get out.

The value of Premier League clubs keeps going up, it's why it's attractive to investors, that and the vanity aspect.

Which question haven't I answered?

Offline Drummond

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Re: End of year accounts
« Reply #46 on: April 13, 2021, 10:40:30 PM »
There are clearly some intangibles. The attractiveness of a club is hard to value isn't it?

But don't you think that Villa are now far more attractive and would cost a lot more than we did when NSWE bought us, despite the losses?

Pretty much all the players we've bought have increased in value, yet on the books they won't show that way will they?

The name of Aston Villa is being noticed again, we're performing well and that in itself is attractive. The owners can write off the losses against tax elsewhere too, so a loss isn't necessarily a bad thing.
You said “they will want to increase the value of an asset rather than make a profit”
Which makes absolutely no sense whatsoever.

Well, it does.

You realise the profit when you sell an asset at its increased value. I think what Drummond is saying is that they're in it for that, rather than draining the club of money from one year to the next (if they were in it for that, they'd have to be in it for the long term anyway as that's not happening for a while).

They are clearly playing the long game.

Yep.

Offline sid1964

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Re: End of year accounts
« Reply #47 on: April 14, 2021, 06:39:12 AM »
So if we sell Mings for example, we are selling an asset at an increased value, is that the only way we can make a profit?

We would have to be selling our best players each season to make a profit - is this correct?

Mings currently would be worth £50 million however the older he becomes his transfer value will drop, so should we sell him this summer to get the full value for him.

Online Sexual Ealing

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Re: End of year accounts
« Reply #48 on: April 14, 2021, 07:12:18 AM »
But Mings's value doesn't just lie in his transfer price, he can help inflate the asset (as long as he stops passing to opposition strikers).

Offline Ad@m

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Re: End of year accounts
« Reply #49 on: April 14, 2021, 07:31:00 AM »
In old fashioned football terminology, the owners are having to speculate to accumulate.

The only way you make money out of Premier League football is to increase your revenue. A club of our size simply can’t cut costs to a level which would turn a profit given the revenue we’re currently showing.

So they’re over-investing now to try to build the revenue base such that we have a sustainable club in the future. In the short term, that revenue base will probably be more heavily weighted towards significant player sales so that we adhere to FFP but longer term the plan would no doubt be to reduce our reliance on player sales.

All clubs rely on player sales to an extent though.

Offline paul_e

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Re: End of year accounts
« Reply #50 on: April 14, 2021, 08:46:08 AM »
So if we sell Mings for example, we are selling an asset at an increased value, is that the only way we can make a profit?

We would have to be selling our best players each season to make a profit - is this correct?

Mings currently would be worth £50 million however the older he becomes his transfer value will drop, so should we sell him this summer to get the full value for him.

No, the more valuable and recognisable the club is a brand the more commercially viable it becomes so we get bigger and better sponsorships, we get more full crowds (daytripper support is a huge moneymaker for Man Utd and Liverpool).

Offline Drummond

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Re: End of year accounts
« Reply #51 on: April 27, 2021, 08:08:56 AM »
https://twitter.com/SwissRamble/status/1386924270526341122?s=19

Interesting analysis on The Swiss Ramble this morning...

Offline Risso

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Re: End of year accounts
« Reply #52 on: April 27, 2021, 09:16:08 AM »
https://twitter.com/SwissRamble/status/1386924270526341122?s=19

Interesting analysis on The Swiss Ramble this morning...

Very interesting. Productivity will be down in the Bristol area this morning.

Online Sexual Ealing

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Re: End of year accounts
« Reply #53 on: April 27, 2021, 10:12:29 AM »
I lost the will to live six tweets in.

Online AV82EC

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Re: End of year accounts
« Reply #54 on: April 27, 2021, 10:47:36 AM »
You lasted that long!

Online Monty

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Re: End of year accounts
« Reply #55 on: April 27, 2021, 10:51:20 AM »
I read all of it, and understood maybe 10%? I did read the phrase 'virtually debt-free' though so I liked that.

Online Sexual Ealing

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Re: End of year accounts
« Reply #56 on: April 27, 2021, 10:51:33 AM »
You lasted that long!

I'm a slave to the rhythm!

Online AV82EC

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Re: End of year accounts
« Reply #57 on: April 27, 2021, 11:01:21 AM »
You lasted that long!

I'm a slave to the rhythm!

<Frankie Howerd> Oh No Mrs, wait no Oo-er Mrs</Frankie Howerd>

On a more serious point the things I picked up:

- Debt Free
- Revenue from Project restart will be booked into this years accounts (not much I'm sure but will help FFP)
- Our revenue overall is dismal compared to our peers across matchday income, broadcast and commercial.
- Player trading continues to be unprofitable and will probably continue as we invest further in the squad.
- Wages to turnover ratio improved but is still eye watering at 97%
 

Offline paul_e

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Re: End of year accounts
« Reply #58 on: April 27, 2021, 11:11:29 AM »
You lasted that long!

I'm a slave to the rhythm!

<Frankie Howerd> Oh No Mrs, wait no Oo-er Mrs</Frankie Howerd>

On a more serious point the things I picked up:

- Debt Free
- Revenue from Project restart will be booked into this years accounts (not much I'm sure but will help FFP)
- Our revenue overall is dismal compared to our peers across matchday income, broadcast and commercial.
- Player trading continues to be unprofitable and will probably continue as we invest further in the squad.
- Wages to turnover ratio improved but is still eye watering at 97%
 

the 97% is very misleading becuase of the amount of lost revenue (much of which is covered by the first line). Remove the lost and deferred revenue from covid and it's 68% which is fine.

Online AV82EC

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Re: End of year accounts
« Reply #59 on: April 27, 2021, 11:28:06 AM »
You lasted that long!

I'm a slave to the rhythm!

<Frankie Howerd> Oh No Mrs, wait no Oo-er Mrs</Frankie Howerd>

On a more serious point the things I picked up:

- Debt Free
- Revenue from Project restart will be booked into this years accounts (not much I'm sure but will help FFP)
- Our revenue overall is dismal compared to our peers across matchday income, broadcast and commercial.
- Player trading continues to be unprofitable and will probably continue as we invest further in the squad.
- Wages to turnover ratio improved but is still eye watering at 97%
 

the 97% is very misleading becuase of the amount of lost revenue (much of which is covered by the first line). Remove the lost and deferred revenue from covid and it's 68% which is fine.

Fair point paul, hadn't computed one with the other.

 


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