West Ham's "Compensation" money..

[ThatJa]

David Sullivan has revealed West Ham still owe more than £10million to Sheffield United over the ‘Carlos Tevez affair’.

The Hammers have made eight signings this summer and manager Sam Allardyce said he is still looking for “two or three” new players before the window shuts.

But co-owner Sullivan said the Upton Park club’s transfer activity has been restricted by the compensation due over the illegal registration of Tevez back in 2006/07.

“We’ve done some good business and brought in some real quality despite our still-limited resources,” he said.

“We have an eight-figure sum still outstanding over the Tevez affair, even though we have been paying it down over the past two years.

“That amount has to be paid off over the next 12 months, which does take its toll on our transfer activity.”

West Ham were initially fined £5.5m by the Premier League over Tevez and then agreed a £26.5m out-of-court settlement with the Blades in March 2009.

The Hammers, who hope to secure a move to the Olympic Stadium in the next six weeks, still carry a total debt of £80-90m, including £5m to cover ticket income that was sold in advance.

http://www.mirror.co.uk/sport/football/news/west-ham-still-owe-sheffield-1269811

 

[Bladesman]

Still making daft £17million bids for the likes of Andy Carroll though.

Mind you 10 million in 12 months will be handy if we get it.

 

[judge]

Straight to bank of santander do not pass go do not collect 10 million pounds I

 

[Oreyt]

Just to twist it a bit more: on my way into Euston this morning I noted the video screens on the escalators were showing a cut down version of the new Sky ad - "Football can be full of ecstatic moment (shot of Shammers fans celebrating) and football can be full of agonising moments (shot of Utd fan crying)".

 

[iggle-theblade]

knowing this money is coming in why are we cutting back so much ?
surley better to spend that little bit extra and push on than cut back to the bare bones like been reported and risk seasons in league one or even lower instead of a couple and get back to the championship??

but if McCabe has all ready used all this money then we are in trouble as the years since the West Ham saga have not been the best and to have wasted the compensation is a massive waste by the club.

 

[broomhillblade]

It puts a new twist on the "where has all the money gone?" saga.

It seems we never received a big chunk of it.

Can we get Darren to slap an injunction in...?

 

[broomhillblade]

surley better to spend that little bit extra and push on than cut back to the bare bones like been reported and risk seasons in league one or even lower instead of a couple and get back to the championship??

I thought they tried that last season.

 

[beightonblade]

forget it the money was swallowed up by the McCabe big black hole years ago.

 

[Houso]

Didn't McCabe /Scarborough loan us the full amount of the settlement (with some sort of interest attached to it), so anything that was paid by Wham went/goes directly to him?

Meaning that this is ultimately a non-story insofar as SUFC are concerned...

 

[StarBlade]

Still making daft £17million bids for the likes of Andy Carroll though.

Mind you 10 million in 12 months will be handy if we get it.

We've already had it in the form of a loan from Santander, the full £18M. All West Ham money goes to Santander.

 

[Kev Gee]

Im sure the Tevez money has already been budgeted for.

 

[blade too long]

BUDGETED BUT NOT USED IN THE TURNOVER so we are 10 m better off , one day

 

[StarBlade]

BUDGETED BUT NOT USED IN THE TURNOVER so we are 10 m better off , one day

In 2009 we made £6M profit, but that included the £18M, hence we made a £12M loss.
In 2010 we lost £18.6M.
In 2011, we expect to lose £12M.

We are not sitting on a pot of gold biding our time for the perfect moment, we are skint, in massive amounts of debt to our parent company and landlord, and we're losing tonnes of money and losing it fast.

Our club is broken!

 

[judge]

In 2009 we made £6M profit, but that included the £18M, hence we made a £12M loss.
In 2010 we lost £18.6M.
In 2011, we expect to lose £12M.

We are not sitting on a pot of gold biding our time for the perfect moment, we are skint, in massive amounts of debt to our parent company and landlord, and we're losing tonnes of money and losing it fast.

Our club is broken!

Will your next post inform us all how we only got bigger crowds than Wednesday because we gave
Thousands of free season tickets because you are very much following the porktalk party line so far

 

[StarBlade]

Will your next post inform us all how we only got bigger crowds than Wednesday because we gave
Thousands of free season tickets because you are very much following the porktalk party line so far

You are an idiot.

Just because it's United, doesn't mean it's good. Just because it's Wednesday, doesn't mean it's bad. It's that kind of attitude that has lead us to not question these losses, which has lead us to League 1, without a ground, and in debt to a property developer. But still, it's United, so it's better we bury our head in the sand to what is happening at our club.

 

[Balham]

To explain:

United recognised £18m in the 2009 accounts in respect of the Tevez judgment. The actual cash figure was £24m but owing to the time cost of money (£1 today buys more than £1 will in a year's time) the recognised figure was lower. We then borrowed £18m from Santander, secured against the £24m income from West Ham.

It's a pity though that we also took the loan from Santander in 2009 as that £5m cashflow would be very useful this year and next...

 

[Worksop_Blade]

Worth.Every.Penny

 

[mattbianco1]

"Compensation"

We're in League 1, they're in the Premier. I struggle to see how anything has been compensated

 

[alcoblade]

You are an idiot.

Just because it's United, doesn't mean it's good. Just because it's Wednesday, doesn't mean it's bad. It's that kind of attitude that has lead us to not question these losses, which has lead us to League 1, without a ground, and in debt to a property developer. But still, it's United, so it's better we bury our head in the sand to what is happening at our club.

Whilst I'm with you that everything in the garden is far from rosey, let's keep some perspective. We are "without a ground" in the same way that Mancher City are "without a ground". And the property developer is also a United fan (tap ins invited) who has been gradually writing the debt off.

The big issue holding us back right now is the current losses. Most of the rest is fluff.

UTB

 

[davidpinder]

won't make any difference to our on the field activity this will be a payment plan costed in. its not as though it is a bonus we know we are getting it.

 

[Large Mendonca]

I've never been able to work out the "massively in debt" argument, for me the sums just don't add up....unless all McCabes failed adventures we're lumped onto the club ie. hotel, chengdu etc

1 season's premiership money (with sell out crowds) 2 years parachute payments, Tevez money, TV money, player sales (20m plus), PLUS McCabe has supposedly put ££ millions of his own money in and lost it ?????

If all that adds up to us being £"god knows how much" million in the red, then whoever sanctioned player wages for that period needs the death penalty via a trial in The Hague.

 

[Balham]

StarBlade we do have a ground. It's owned by Sheffield United, albeit the plc. It's time to get worried when the ground and other fixed assets are transferred to another entity.

davidpinder it's not even that. We mortgaged this income 3 years ago; it's basically been pissed up the wall on Robson's disastrous signings and failed expansion plans.

Large Mendonca we've been spending more than 100% of turnover on wages for the past three years. That means that all the money we've brought in has gone before United even try to pay any bills, upkeep, merchandising costs etc. The reason we've not gone down the Wednesday route (not paying the taxman/ St John ambulance etc) is because McCabe has loaned the club a considerable sum of money each year.

 

[StarBlade]

StarBlade we do have a ground. It's owned by Sheffield United, albeit the plc. It's time to get worried when the ground and other fixed assets are transferred to another entity.

davidpinder it's not even that. We mortgaged this income 3 years ago; it's basically been pissed up the wall on Robson's disastrous signings and failed expansion plans.

Large Mendonca we've been spending more than 100% of turnover on wages for the past three years. That means that all the money we've brought in has gone before United even try to pay any bills, upkeep, merchandising costs etc. The reason we've not gone down the Wednesday route (not paying the taxman/ St John ambulance etc) is because McCabe has loaned the club a considerable sum of money each year.

I appreciate that Balham, and I know the FC and PLC are effectively the same company owned by the same people. The only difference is as of a few weeks ago, the ground was with the FC and now it's not, for no other reason as to attract investment. I won't go over old ground but that change, for that reason, does get me worried now. Whether that be justified worrying I don't know just yet.

 

[Balham]

I appreciate that Balham, and I know the FC and PLC are effectively the same company owned by the same people. The only difference is as of a few weeks ago, the ground was with the FC and now it's not, for no other reason as to attract investment. I won't go over old ground but that change, for that reason, does get me worried now. Whether that be justified worrying I don't know just yet.

Yup. It would be good to get the reasons behind the asset transfer in layman's terms, that's for sure. I'm pretty sure I understand the motive but I'm not convinced it'll attract any investment.

 

[super_pig]

i don't know/understand much about this but seeing as KM is a property developer, the moving of the ground from the FC to the PLC does have me a little worried

 

[yorkshirecoast]

I've never been able to work out the "massively in debt" argument, for me the sums just don't add up....unless all McCabes failed adventures we're lumped onto the club ie. hotel, chengdu etc

1 season's premiership money (with sell out crowds) 2 years parachute payments, Tevez money, TV money, player sales (20m plus), PLUS McCabe has supposedly put ££ millions of his own money in and lost it ?????

If all that adds up to us being £"god knows how much" million in the red, then whoever sanctioned player wages for that period needs the death penalty via a trial in The Hague.

Agreed. McCabe often goes on about what he's spent (even though I thought that came with the territory - he certainly doesn't contribute anything else) but I've never seen a clear or believable explanation of where the income has gone. Even since we lost the parachute payments we've continually been at the top of the attendance tables and I don't know anyone who has sold as many of their better players as we have.

 

[alcoblade]

i don't know/understand much about this but seeing as KM is a property developer, the moving of the ground from the FC to the PLC does have me a little worried

Remember the Glaziers ran sports clubs - how good a fit is that? They took over a club that owned its' own ground and overnight that club was £650M in debt.

If the owners intend to shaft a club they can. If McCabe doesn't intend to shaft ius then it could be that the seperation of the ground from the club is as good an insurance policy that can be bought. If he does, we're in trouble.

UTB

 

[alcoblade]

Agreed. McCabe often goes on about what he's spent (even though I thought that came with the territory - he certainly doesn't contribute anything else) but I've never seen a clear or believable explanation of where the income has gone. Even since we lost the parachute payments we've continually been at the top of the attendance tables and I don't know anyone who has sold as many of their better players as we have.

Average attendances of 20,000 at £250 average per head brings in £5,000,000 per year. Our wage bill alone was over £20,000,000 for some time.

The question for me is not whre the money went, but how on earth we managed to run up a wage bill north of £20M witht the quality we got in return. Thanks Brian.

UTB

 

[Fiery Blade]

What gets up my nose is that West Ham are bleating about lack of funds to purhase the likes of AndyCarroll and we have to move high earners such as Monty and Cresswell to compete in Division Three!!!

 

[bartman]

I appreciate that Balham, and I know the FC and PLC are effectively the same company owned by the same people. The only difference is as of a few weeks ago, the ground was with the FC and now it's not, for no other reason as to attract investment. I won't go over old ground but that change, for that reason, does get me worried now. Whether that be justified worrying I don't know just yet.

If the football club went into administration now,the creditors would rightly claim that that an asset that could have repaid them has deliberately been moved/had its title transferred to avoid paying them. This is a transfer under value under Insolvency Law which means that the asset can still be used to pay off the creditors under Insolvency( they would all be treated the same-including McCabe and get a pro rata payment).