Kieran Maguire on Blades Finances

[jt64]

im going to show my age here. but how close are we to another ITV digital situation reappearing

In the context of the Premier League, not really. There's so many different broadcasters (both here and overseas) that are contributing to the overall pot of revenue that any one of them going bump is only going to cause temporary fractional damage, and given the popularity worldwide is so high there'll be someone else looking to take on what's lost. It's not like ITV Digital at all where for all intents and purposes they had a monopoly of a product that people weren't really that interested in

 

[The Hobott]

Did I read that correctly - we got 8.5m off Dozy?

 

[Freddy Dunning-Kruger]

This might be a stupid question, but here goes...

Does anyone know how much money we actually lost?

The accounts show some losses due to the depreciation of the value of players. Those losses aren't actually real though, right? We didn't actually lose any money as a result of a player's contract running down. Any transfer fee we might get would be lower, & we might need to pay out money in future to sign a replacement, but the fact that a player's 'value' as listed on the accounts has dropped hasn't actually cost us any cash, even though the accounts make it look like it has.

(or maybe I have completely misunderstood things & don't know what I'm talking about, which seems entirely possible. )

 

[loyalblade95]

This might be a stupid question, but here goes...

Does anyone know how much money we actually lost?

The accounts show some losses due to the depreciation of the value of players. Those losses aren't actually real though, right? We didn't actually lose any money as a result of a player's contract running down. Any transfer fee we might get would be lower, & we might need to pay out money in future to sign a replacement, but the fact that a player's 'value' as listed on the accounts has dropped hasn't actually cost us any cash, even though the accounts make it look like it has.

(or maybe I have completely misunderstood things & don't know what I'm talking about, which seems entirely possible. )

Thing is, those are last season's accounts which are usually submitted to the FA or whoever is in charge around the end of june last year.

Those accounts dont involve anything we do this season like the TV money, the money we will receive at the end of the season depending on where we finish this season or the parachute payments we'll get next season.

 

[jt64]

The accounts show some losses due to the depreciation of the value of players. Those losses aren't actually real though, right?

It's more a case of when they are applied. In the case of, say, Brewster, the actual loss in terms of cash money will be realised as and when we pay Liverpool, likely in one larger payment up front with us drip feeding the rest in the installments as most transfers work these days. In terms of the actual accounts, we'd stick a £20m loss into one column up front, but gain a £20m asset in the other column at the same time (please no "brewster 20 million pound asset lol" derails), which will reduce in value proportionally over the length of his contract until he's either sold or released

 

[finlaytheblade]

£80m in outstanding loans (£52m to the bank, £28m to the directors). Be interesting to know if any of that has been cleared this year, I wouldn't imagine it has.

Income in 21/22 was £67m before transfer dealing so likely to be a similar number next season

I reckon most of that borrowing is covered by parachute payments.

 

[Sean Thornton]

£80m in outstanding loans (£52m to the bank, £28m to the directors). Be interesting to know if any of that has been cleared this year, I wouldn't imagine it has.

Income in 21/22 was £67m before transfer dealing so likely to be a similar number next season

£45m is due after one year. If anything is repaid it will be the DLA. IF.

 

[Harry's Game]

im going to show my age here. but how close are we to another ITV digital situation reappearing

I am going to show my age here when I say I thought the ITV digital collapse was about a decade ago.. just checked and it is 22 years ago!!! Feck me where’s time going?

 

[Carlton Blade]

£45m is due after one year. If anything is repaid it will be the DLA. IF.

Sounds like a loan to pay off a loan situation might well be required. Expensive, this football lark

 

[Carlton Blade]

I reckon most of that borrowing is covered by parachute payments.

That would mean the money left over to run the club is about £10m

 

[MobileBlade]

It'll depend on the accounts which come out on the 30th June, if we were quite quick about selling Anel and Souza before the 30th June, then the sale of those players would go into this season's accounts, any players sold from the 1st July onwards go into next seasons accounts.

Edit: I am basing this off of what I heard a finance expert saying about why Forest ended up in trouble with FFP, apparently most of it has to do with their decision not to sell Brennan Johnson to balance last year's books when they were warned that they would breach FFP rules if they did not sell him by the 30th June 2023.

Or do a Wednesday and put back you financial year end by a month to try and avoid it.

 

[SRBlade]

They’ve moved on, they’re now speculating on points deductions for us breaching FFP.

Unsurprisingly, none of them have any idea what the rules are or if we’ve broken them, so they’ll go round in circles consoling themselves with believing that whatever mess they’re in, we’re in a worse one

The irony coming from fans of a club that was effectively relegated due to their football finance management.

 

[Millhousesblade1889]

I'd say that proves to my point in the Wednesday thread other day that without parachute payments, clubs would be royally fucked.

This new Financial Regulator needs to re-balance the pyramid because the Premier League is killing English football

Probably why we’ve not risked it this year and been so bad. It doesn’t guarantee you survival, Forest are still battling against & were last season despite spending ridiculously.

The consequences of relegation financially are eye watering & we know of that first hand

 

[Sean Thornton]

The irony coming from fans of a club that was effectively relegated due to their football finance management.

And escaped sanctions after a claim from a supposedly independent accountant who was on the board with Chancer of a Wendy related company, that the shithole was worth £60m.

 

[Tom Bott]

Quick reminder:

Sheffield Wednesday named Europe's worst financial performers in 2021

Off The Pitch name Sheffield Wednesday as the worst financial performers out of 185 European clubs in 2021

www.examinerlive.co.uk

Or as someone posted on X.

 

[Old Programme seller]

I always thought amortisation was for tax relief? The cost of the player broken into the length of the contract so it’s like buying on the tick or if you own a company vehicle capital gains, in short you’re paying the payments down. One thing is that we’ll not be paying any tax

 

[Tom Bott]

Surely it's not a £32 million loss.

It's £ 32 million pounds of investment, and if only we had invested more.