Investment

There are different views on how you'd structure a deal, but assets on the balance sheet - including cash at bank belong to the company, not the individual(s) who own it - the individuals could take all the cash, but there'd be massive tax implications. If it's given as part of the deal price, then Entreprneur's tax relief comes into play.

 

Yes but you factor all of that into the price. You don't get the money in the bank as a bonus.

 

But if the new owners are solely operating to make profit and to then use that to invest etc.....

If... The money hasn't remained in the club then we have gone back years.

We will have to sell sell and sell more before that investment is used to build.

Rather than being able to use the money had it remained in the club to build now.

Jays question is a totally fair one to ask and one we should all be asking.

It's not hard for someone to say if it's still in the club or not. If it isn't I don't think anyone will go bananas. Just that we know what to expect over the next few years

 

See, you've opened another can of worms re tax. Am I right in thinking that when we've sold players over the years, gross figures are talked about (often estimated, or misreported), but those sales are taxable, and at a higher rate than the average bloke due to size of turnover?

 

Not a clue - I don't know how fees are broken down, I was referring to the moment in time that any business is sold, and what would be the case if vendors took all the cash out of the business prior to sale.

 

When you buy a business, you have to buy the business itself, and its assets which include cash, but also include its debts and other liabilities. For example, a business has £1million in the bank and no debts. You buy the business for £1. It sounds cheap, but the price you have to pay is actually £1,000,001. You pay that out of your own money, but the £1million you've bought belongs to your new company. You can't get your hands on it personally without horrible tax implications. For that reason, most business sales involve the sellers taking the cash out prior to sale. In my example, the sellers would take their £1million pounds out, you would pay just £1, but the business would be skint.

In practice, a deal somewhere inbetween would be agreed. And of course my example is a gross over-simplification.

 

Money is money mate. If Cryne has left it in the coffers then his family will have been remunerated.

I don't see how we have gone back years. Whether Cryne has left money in the bank or its been introduced by the new owners, we still won't be frivolous with it.

We're pretty much sailing the same course, but with much more potential.

 

I'd have hated for you to over complicate it!

 

But I think we both agree that you don't get a bank full of brass pro gratis.

 

Totally agree. My question was regarding how much was owed and how much above and beyond that we made from player sales. Of which I don't know.. Maybe nothing. I just don't feel a lovely person or should be made to feel a lovely person for asking that question.

 

The balance sheet is published every year , no one is deliberately stopping you from analysing the figures & I believe all accounts have to be independently audited, so why would you imply things are not done openly & honestly ?

 

Because they are not. Undisclosed fees left right and centre. Fans are deliberately kept away from seeing financial state of player sales.

 

I've got the latest accounts posted at companies house. If you haven't I can send them to you and you can describe to us all how open they are.

 

Yes, but the resulting cash balances are public knowledge and can be seen on the balance sheet.

 

So, after reading this entire thread, my only takeaway is no one knows owt.

Who gives a **** anyway? Seriously.

 

Agreed

I do. Seriously.

 

No thanks, being as you seem to be the expert , I will leave it to you

 

Why though? Seriously.

What actual impact does it have on your day-to-day life?

I love Barnsley Football Club, but I honestly don't get this relentless need for fans to know every little last detail regarding the running of the club, can anyone remember what being a supporter was like before 1990? I can, folk watched football.

 

Careful......

 

Exactly. Who gives a toss where millions of pounds went. People need to move on.