Whites record 51 million pound loss

[You must be registered and logged in to see this image.]

I don't actually know if this is news frankly it just popped up on twitter.

but it's in a nice table so...

That excuse doesn't wash with anyone. We should still be pissing this league. Freedman out.

I'm sure Sluffy posted the accounts when they came out, there was a big thread on this?

It's not just on the field but lots of financial incompetance in the backroom management.

Phil & Eddie Out.

karlypants wrote:I'm sure Sluffy posted the accounts when they came out, there was a big thread on this?

You're right, this is just someone collating it all and comparing it to the rest of the league, which is probably what may be of interest.

considering we are bottom.

Hipster_Nebula wrote:

karlypants wrote:I'm sure Sluffy posted the accounts when they came out, there was a big thread on this?

You're right, this is just someone collating it all and comparing it to the rest of the league, which is probably what may be of interest.

considering we are bottom.

It doesn't look good and if we don't get out of this league ASAP, we will go bust.

The original thread is here: [You must be registered and logged in to see this link.]

We might be bottom of this league but if all 4 divisions were put in a table we'd be saved from ignominy by City. Look on the bright side.

We are the fifth most debt ridden club in world football

Who are the top 5?

It's quite nice to mentioned alongside such illustrious clubs... and QPR.

Two words. Bad management. And that includes you, Gartside.
[You must be registered and logged in to see this image.]

Wonder why they don't have a figure for "value" for BWFC?
Is that because all that spending is currently worth f*** all? Or is it because they haven't valued the off-site assets?

Seriously scary numbers. We won't be buying moderate success any more and the fans need to get used to it.

Does anybody actually know for definite (without guessing) whether or not the story that always gets bandied about regarding the debt mainly being owed to ED and our debt to the bank only being £8m is true?

We are haemorrhaging money like there's no tomorrow but ED seems content to sit back and let Gartside get on with it. 

I know we're trying to get the high earners off the wage-bill, but it just doesn't stack up for me.

Say we've got five players earning £30k a week.

That's £150k X 52 = £7.8m

So if we bin all five off, we save £7.8m a year.

That doesn't even scratch the surface of the debt.

It doesn't make any sense to me and I'm wondering what ED has said to Gartside, because there must be a plan because if we don't act soon, we're going bust.

Breadman wrote:Does anybody actually know for definite (without guessing) whether or not the story that always gets bandied about regarding the debt mainly being owed to ED and our debt to the bank only being £8m is true?

We are haemorrhaging money like there's no tomorrow but ED seems content to sit back and let Gartside get on with it. 

I know we're trying to get the high earners off the wage-bill, but it just doesn't stack up for me.

Say we've got five players earning £30k a week.

That's £150k X 52 = £7.8m

So if we bin all five off, we save £7.8m a year.

That doesn't even scratch the surface of the debt.

It doesn't make any sense to me and I'm wondering what ED has said to Gartside, because there must be a plan because if we don't act soon, we're going bust.

Breadman... That's the same question I have been asking... and I think you have portrayed it accurately.  How does the club lose that much money when the payroll doesn't even come close to it?  Something is being skimmed off the top for some tax advantage plus whatever interest ED is taking (and I'm sure he is being generous).  This is a dodgy game, with dodgy characters and dodgy debt.  It would take an Arab sheik with plenty of oil wells to get us out of this mess or is it really a mess?  Maybe it is just losses on the books?  Whichever, the numbers are frightening and the future of the club may be in jeopardy. Maybe we should get a team of under 21's who will play for £200 a game next season?  Then our losses would only be £30 million.  Hence, this most probably has more to do with the real estate losses than the club. The finances are tied together. Something is amiss in the kingdom.

Cheers Obs.

It just doesn't make any sense at all to me.

Where has it all gone?

And how on earth can we claw it back?

Can we put the swear filter on '' Gartside.

We should form a queue to give her a good twatting the fat pig!

The solution is simple, qualify for the Champions League soon as?

Breadman wrote:Cheers Obs.

It just doesn't make any sense at all to me.

Where has it all gone?

And how on earth can we claw it back?

I don't know is my real answer but I think what I say below is the truth of the matter.

Davies owns just over 95% of the club, so to all intents and purposes the club is basically owned by one man.

One of the first things Davies got around too was paying off the bank loans and then basically loaning the club money from his back pocket - on a business loan basis - to be paid back at something well over bank interest rates.

He then went and did the exact same thing but on a much bigger level by getting one of his businesses - Moonshift - to loan the club up to a £100 million. (As Davies doesn't seem to have a £100 million, I assume others are involved in the background to all this too).

It seems that a stage was reached a year or two ago when the club could no longer pay back the loans and the interests to Davies - so what he did was he simply didn't call them in - and instead just added these sums to the debt.

So we've reached a stage where the sums just become meaningless - yes Davies as put money into the club - yes the club should pay him back - but it can't - and even though the debt gets bigger from the added interest on the loans the club should have already paid Davies - it can never now repay them - and Davies just holds a 'paper' debt, that each year is getting increasingly bigger - as other loans fall due for payment as well - and of course will never now be paid.

What many owners do in this position is to turn the debt into equity - basically write off the debt that he owes to himself!

I guess Davies as not done that for some sort of tax 'dodge' or similar.

Unlike many I have no problem Davies earning money from the club - after all he risked his money when no one else was prepaired to do the same - so good luck to him. Where it as got a bit silly now though is the 'paper' amount that is owes to him.

What bothers me - and what is actually played down the most - is the debt owed to the banks of something like £10 million.

Why - because if Davies as no money worries - then why does he need to borrow money from a bank to cover cash flow problems?

Maybe all is not quite as calm money wise behind the scenes as Gartside would like us to believe?

Finally - and going off a bit on a tangent - I'm surprised how many people think once our big wage earners are off our books in the summer, how we can then afford to bring some new faces to the club (and / or sign some of our loan players).

The savings in wages could simply be swallowed up to keep the club afloat / keep within FFP guidelines / pay down some of the debt.

Brining in new players may actually be the last thing the savings are used for!

Hope I'm wrong though - in fact I think there will be some signings - there as to be if we don't want to get relegated!