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DaveT316 said:
Is it too simple to state the drop off in league position has cost us here and the difference between being in the red and the black? It's a, what, £20-25m swing from 5th to 17th?

The big spike in profitability in Poch years driven by regular champions league football?

Maybe I'm over-simplifying and need to properly read the article, but is there anything really to see here?
Click to expand...
Clicky headline. Roll eyes.

The impressive rise in profits upto the completion of the stadium were a tactical move as we went into the final reconciliation of refinancing the stadium debt. It paid off in the low long term rates we secured.

COVID then took it's toll (as it did on everything and everyone) on income and profits.

As noted above the circa £70m depreciation charge on the stadium makes it appear we are trading at a bad loss. Remove that, we are not.

Two things to worry about in the accounts.
Player trading and transfer fees owed. (Hence our shift back to young recruits)
Increased operational costs. (Yep inflation is a killer)

Our debt is not a worry (remember that £250m of our long term debt isn't the stadium but the refinanced COVID loan that bridged that particular event)...to service this debt pile isn't an issue as a yearly cost (as long as the current mob don't carry on as they started with Macquarie loan nonsense)

If we go down....we are certainly going to have to trim any fat and hope we bounce straight back......you could say what we need is an astute safe pair of hands. The irony.
 
DaveT316 said:
Is it too simple to state the drop off in league position has cost us here and the difference between being in the red and the black? It's a, what, £20-25m swing from 5th to 17th?

The big spike in profitability in Poch years driven by regular champions league football?

Maybe I'm over-simplifying and need to properly read the article, but is there anything really to see here?
Click to expand...
It’s around 3.6 mil per league position, or closer to 43 mil.
 
DaveT316 said:
Yeah he sounded only one layer deep on the VFTL pod - I’d hardly call him a football finance expert and I came away feeling I could have offered the same level of insight into our finances.
Click to expand...

He’s a former jr level accountant but does not have the ability to interpret the financial data he is reporting on.
 
Thought it was a decent piece to be honest and the guy made some great points on the podcast. Despite people rushing to proclaim what will happen if we are relegated, no one knows. There is no precedent for it, we don’t know what’s in the players’ contracts and who will stay/go and we’ve no idea what the £200m operating costs consist of. There are too many variables to know how badly we’ll be impacted.

What’s apparent to me is that Chelsea and City have changed the football landscape where it becomes very, very expensive and risky to try and compete. We’ve made a particularly calamitous job of it with our player trading over the last few seasons. We’ve spent big money on fees but on risky punts who haven’t worked out and we lost our ability to squeeze other clubs for fees for the lads we were selling. All that has contributed to a 300m (I think) transfer fee burden we still have to settle.

We are a case study for the ages, more so if we go down. I’d find it infinitely more fascinating if it was any other club. Right now, I’m just closing my eyes, covering my ears and hoping RDZ can keep us up.
 
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