Pretty sure in the history of BFC we have never ever been in a situation where we are losing £1m per month. Even when we went into administration last time it was for a pittance of that, plus the stadium isn't even an asset this time so we need some serious answers as to where things have gone wrong financially covid aside. At those levels we cannot possibly survive, Crynes certainly don't have deep enough pockets for covering equity loans every month. Very, very worrying for the future of the club beyond this year.
None of this should come as a surprise to anyone. The club are paying for the largesse of prior years that resulted in an inflated cost base unsustainable with the current levels of income. If the owners can steer the club through this year through a combination of cost reduction and cash injection this is a significant success. The fact they are willing to support the club with their own funds is a massive positive.
This for me should be recognised and commended. Conway and Lee messed things up big time; the current board have inherited a mess. Some will say 'new board same as the old board' but we know that's not true, we know the guy responsible and he's gone. We should at least give them kudos for finally investing some of their own money, albeit sadly to keep the club afloat rather than to purchase that star striker we all crave.
The one million pound per month statement is a bit of an assumption isn't it? Just because there have been recent costs does not mean those are ongoing and can be extrapolated out to twelve million pounds per year.
Loan and player repayments don't go on forever. Monthly payments we are to receive for players we've only just sold may not have started yet. Needing 3 million now is not the same as losing a million a month. I need 1000 quid now to pay off my credit card. I won't need another grand to pay it off next month as I will have already paid it. "we're losing a million a month" is going to be repeated forever and a day now but they didn't say anything of the sort.
I was just answering the question on what the loan was. For what it’s worth, I agree about the clubs point. Personally I’ve always thought the worry of some about this loans was unfounded as can’t believe for a minute the EFL would allow clubs go under due to it and would allow clubs more time if needed.
Surely Vals 2 million covers the ashbagi/ Schopp debacle with change to spare? And bar Collins weve sold all our best players. Some things not adding up that's for sure.
Thanks for the update Gally. Although you must wonder why you bother sometimes?!? The mental gymnastics on show in this thread is something to behold. How we’ve gone from an injection of cash to see us through the short term to “we’re losing £12m a year and admin beckons” in a few posts is quite stunning.
I was just giving examples of likely liabilities. Actual details of the liabilities weren’t discussed. Looking at previous accounts and the drop in income from relegation though shouldn’t make any of this a surprise. We also don’t know what was recouped from outgoing transfers.
Very true. It's instantiating that clubs like Wendies and Derby resourceFUL pointvdedyctions spend, spend , spend and narrower to sell any of their star players
Probably down to larger gates, better commercial incomes, more expensive season tickets and owners with deep pockets.
If we’ve not already spent his £2m. Also from what I’ve seen in past clubs don’t tend to pay Managers off in lump sums but continue to pay as normal until they get another job (or end of contract), so in theory we could be currently paying for 3 Managers. All speculation of course.
Remember that it’s not the board putting the money in but the shareholders, who haven’t changed. The post from @Exile showed that the equity injection came from all shareholders based on their shareholding. That means Lee and Conway have backed the club along with the other shareholders. They may have made the mess but at least they are putting their hands in their own pockets. The need to right the financial mess is urgent but will take time. If Duff can bring success this season and a return to the Championship then I think we should be ok. If not then the future could be very tough.
