BFC cash injection

It's to cover the cost of not selling Phillips and Connell.

 

If we reach the playoffs again, regardless of how far we go, we also trigger bonus clauses in most of the squad.

We’ve done this for the last 2 seasons as well.

Didn’t ‘Conman’ estimate this was £500k under Val?

Usual case though - play offs are only any use if you win them, otherwise nothing but hassle.

 

We're losing money at the rate we are because we've abandoned the develop to sell strategy. It's not been overtly stated, but our policy for several windows has been to keep 'better' players, even if not performing that well, rather than capitalise on gaining a fee to subsidise our losses. And I don't think a great deal of attention has been placed on contract expiry dates to try and even out impacts. We've also gone further on contract lengths so when a turkey has been signed, we're feeding it for years and years. In the championship, it stung a bit, in league 1, it hurts a lot to carry players on big wages that you aren't getting anything out of.

I feel we tend to go to extremes and tend to miss the point of balance.

Our First team squad now numbers 30 with 7 out on loan. That's a bit daft for a championship club. For a league 1 club its insane.

Costs should come down a bit in the summer, and numbers, but we often neglect contract ratchets. Essentially annual wage rises are baked into contracts, so a player in year 1 will earn less than they do in year 4. But because its not announced, it's ignored that our contracted wage base rises each year. The only way of getting that down is reducing player numbers, and/or signing players on lower wage levels than those you're offloading. Which ultimately likely means a bigger unknown or they are younger and have a steeper learning curve.

We're making a lot of poor decisions and much is being made in the dark so supporters are second guessing motives and competence.

Maybe a transition is underway and we're not aware. These things take time when you're at such a poor base, but I think the fans really need to see something to hang their hats on and see something resembling hope. I suspect the Roberts and Hourihane signings were just that.

 

Can anyone explain why these people, most of whom have no previous connection with Barnsley are investing these sums in an unprofitable business that is propping up a demonstrably deteriorating football club?

 

Can someone explain to me what happens to the (not insignificant) installment incomings?

Please?

 

They made a relatively modest financial investment. They fell in love with the club. They continue to make a huge financial investment based on their emotional attachment.

That's what they've said dozens of times. I see no other viable explanation and can think of no reason to disbelieve them.

 

I have no other viable explanation either, but successful business people are not normally swayed by emotional attachment. It looks highly irrational.

 

In the balance sheet of the accounts the future cash flow of a transfer paid in instalment’s is recognised as a debtor. In essence the totality of the future proceeds recorded as an asset.

The p&l recognises the profit or loss on a player’s sale in totality in the year of the transfer. The exception being unknown add ons or potential future sell on profits.

The timing of instalment payments impacts cash flow as debtors are turned in to cash.

Hope that helps.

 

Is there a way, reflected in the accounts, to demonstrate an actual loss on a player's sale? How would that happen?

Ta.

 

My personal opinion is they came on board with a modest stake initially, believing a small initial outlay could be turned into something more significant. When we got into the playoffs in the championship, they could taste a killing.

I doubt they love the club. They get grief for poor decisions and it's cost them more to keep the lights on than what the club was initially bought for. Why would you love something that's costing you millions and you don't have any connection, other than now owning it? I can imagine vanity. I can see their access to other club owners of major wealth could be of value and I suspect some developed connections could have value outside of the football spectrum.

You can't also assume alignment of each owners motive. Is Parekhs motive the same as the Crynes? Is it the same as Quays mini consortium?

 

Move along . Nothing to see here.

 

Good job our 4 main owners aren't successful business people then.

 

If salaries are £6m and increase 4x to £24m, and TV money is £2m in L1 and increased 8x to £16m, it doesn't equate to more sustainability.

 

Yes is the short answer. The way players are accounted for is based on the transfer fee paid and the length of their contract.

If a player is signed for £1m on a 4 year contract. The initial record would be a deduction of £1m from cash to £1m in intangible assets.

Each year the value would reduce by £250k and shown as amortisation of intangible assets. Suppose at the end of year 1 the player is sold for £500k, his amortised value would be £750k so that would be a loss of £250k and would show in the player trading impact on p&l.

 

I said that once and was roundly informed that none of them are indeed successful and only operate at this level due to Family or Marrige association. None of them has built or expanded a business in their own right...

 

I tend to disagree - without getting too philosophical, lots of "successful" business people get involved in things like sport - because its an outward sign of power/influence, good for networking and contacts for other business interests. I think people with a lot of money are looking for a purpose - they get the trappings of money - cars/planes/posh hotels/the best holidays - but in the end those are "things" which are fairly transient in the joy they can bring - once you've owned a Ferrari for a couple of years, do you view it any different then how I view my old Audi A3? I doubt it. So they look for something to keep their lives interesting/challenging 'meaningful' - what better way then bringing happiness to the plebs through sport? Reflected glory.

 

It's generally called vanity.

 

exactly the only people it benefits is players.

 

FACT IS THE BOARD NEED TO ORGANIZE A MEETING TO UPDATE THE FANS OF THEIR PLANS AND WHY THEY KEEP MAKING WRONG DECISIONS

 

As always. Player wages are THE financial issue in football.