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norfolkngood

How are the Clubs Finances Now ?? Rough Guess

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Any Fag Packet Accountants Out there have a rough idea how the clubs finances are ?

i know it is all guess work until the Accounts come out ,

After a season where we spent very little of Transfer fees, 

I know we had a Debt before the season which stop us investing in the squad ,

then we had to pay out the bonds for the training ground ,

Webber said Virus had lost us approx 20 million ,

so this season we will get Parachute payment plus any players sold money 

What i am trying to Work out is if we sell the 4 youngsters how much could we reinvest or is it just paying debt ?

 

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2 hours ago, norfolkngood said:

Any Fag Packet Accountants Out there have a rough idea how the clubs finances are ?

i know it is all guess work until the Accounts come out ,

After a season where we spent very little of Transfer fees, 

I know we had a Debt before the season which stop us investing in the squad , - not true

then we had to pay out the bonds for the training ground ,

Webber said Virus had lost us approx 20 million ,

so this season we will get Parachute payment plus any players sold money 

What i am trying to Work out is if we sell the 4 youngsters how much could we reinvest or is it just paying debt ? - what debt ?

what a weird post 🙄

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I guess the fact that none of the execs or players took a pay cut during this pandemic means finances are ok. We are also told that we have excellent owners so I expect our finances to be excellent too....

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Posted (edited)

Who said that?  I’ve not seen anything other than that ‘we don’t have to sell’.  If we couldn’t afford much on new players this season it seems unlikely we’ll spend tonnes without selling anyone...though did apparently find some ‘spare’ last summer a bit too late to spend it(?).

The Bond issue was presumably a debt but we know it was paid off (something I still find annoying when it could have seen £5m more invested in the playing side), otherwise aren’t we widely assumed to be debt free?

Edited by Branston Pickle

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10 minutes ago, TIL 1010 said:

The happy clappers have stated we are in rude health financially.

Not the happy clapper rubbish already..

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2 minutes ago, Kenny Foggo said:

I guess the fact that none of the execs or players took a pay cut during this pandemic means finances are ok. We are also told that we have excellent owners so I expect our finances to be excellent too....

The finances are much dependent on liabilities

The club took the rather obvious path that meant only a wage bill and still owing transfer payments, that could be met by 2020 21/22 income, should be incurred.

Therefore no need to raise income by selling

It is as simple as that 😊

 

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2 hours ago, norfolkngood said:

Any Fag Packet Accountants Out there have a rough idea how the clubs finances are ?

Webber said Virus had lost us approx 20 million ,

There's too many variables to consider.

Michael Bailey in his Athletic piece on relegation had more detail on the COVID numbers. £15 million loss this season, and £5m pencilled in for games behind closed doors next season. Expected £8m rebate for broadcasters would be deducted from year 2 parachute payment.

Dave Freezer had said on transfer deadline day we were running a £10m-£15m surplus (pre Covid) after a final signing didn't get over the line.

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The firesale disposal of key assets will defray player wages for the next couple of years. I’m wouldn’t characterise such a strategy as ‘rude health’. With investment of course we wouldn’t be in the situation of willingly throwing away our premier league status. 

 

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Just now, Highland Canary said:

The firesale disposal of key assets will defray player wages for the next couple of years. I’m wouldn’t characterise such a strategy as ‘rude health’. With investment of course we wouldn’t be in the situation of willingly throwing away our premier league status.

ooh look children, a binner lying

quelle surprise 😜

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If, and until, we have sufficient investment in the club to ‘give it a go’ in the PL the cycle of underachievement will continue. Sadly, lack of ambition seems the predominant view of the majority on this site. That lack of ambition means there is no challenge to the board’s strategy but I suspect the clappers are entirely content with that.

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34 minutes ago, Highland Canary said:

If, and until, we have sufficient investment in the club to ‘give it a go’ in the PL the cycle of underachievement will continue. Sadly, lack of ambition seems the predominant view of the majority on this site. That lack of ambition means there is no challenge to the board’s strategy but I suspect the clappers are entirely content with that.

That was kind of my point ! so if we sell say at a guess 40 /50 million of young players then we should expect that money to be reinvested 

 

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It would help the debate if all sides just stop calling each other stupid names, accept that we all have different opinions (and they are opinions other than facts) and move on to discuss the issues around the club we all love, in an adult manner. This is a genuine plea, please can we just discuss stuff without the name calling, if people genuinely want change at Norwich City it is not going to happen if the fans argue and fight amongst themselves, at the moment that seems to be where most of our energy is expended. In terms of the question, the truth is I have absolutely no idea, nobody does, anything I or anybody else posts will be pure speculation. If I was going to speculate, I would guess we are as well placed as any of the relegated clubs to be able to weather the financial storm that is brewing in football, but I think it is going to be a bumpy ride, I speak as a season ticket holder who has claimed his rebate and who has already paid for next seasons season ticket in full, given the current situation regarding coronavirus, it is unlikely Carrow Rd will be accepting crowds until mid October at the earliest, so that is going to be another rebate (I assume). It will be interesting to see what happens in the transfer marker and whether the pandemic has an effect on transfer business and/or transfer prices, but at the moment the gossip columns (and yes I do know it is still gossip) suggest football teams are going to carry on spending as usual, but i accept that remains to be seen. Turning to the question of ownership, and having given the subject quite a lot of thought, I am personally in favour of Delia and co selling the club to somebody with more financial clout, to give us a fighting chance of staying up if we are ever promoted again. No I have no idea who that would be, no I am not going to start a "Delia Out" campaign, and yes if I had the odd £500M stuffed down the back of the settee I would put in an offer in a heartbeat, all I am saying is that I would not be against a new owner if that new owner is more wealthy than the incumbents and it is clear that they have the best interests of the club at heart.............

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1 hour ago, Bill said:

what a weird post 🙄

i thought the Reason we did not Strengthen the team because we did not get the sky money up front so could not afford to buy players ? 

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" clear that they have the best interests of the club at heart............. "

has it ever not been 'clear' when they initially took over ?

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2 minutes ago, norfolkngood said:

i thought the Reason we did not Strengthen the team because we did not get the sky money up front so could not afford to buy players ? 

really ?

All players are bought on the never never

so that is rather silly, if only that the same problem would affect all other clubs

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2 minutes ago, Bill said:

really ?

All players are bought on the never never

so that is rather silly, if only that the same problem would affect all other clubs

Yes i understand that players are bought with instalments but you have to pay something to start with 

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so how do you explain why that lack of money up front did not affect other clubs ?

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I would have thought a refund of 75% of next season's ST revenue to supporters is a reasonable assumption at this stage? Can't see the ground being anywhere near full for some time to come, which will have a knock-on effect as well.

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Just now, Bill said:

so how do you explain why that lack of money up front did not affect other clubs ?

Because they have money in the bank or a large overdraft or a owner who will bankroll it 

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No doubt after another PL season we will be told once again that there isn’t two brass farthings to rub together.

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1 minute ago, norfolkngood said:

Because they have money in the bank or a large overdraft or a owner who will bankroll it 

Whereas you had originally told us

"I know we had a Debt before the season which stop us investing in the squad "

which not only contradicts this later claim, but that your OP was based on a lie

so ta ra, troll

perhaps you will hook some mugs to take you seriously

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32 minutes ago, norfolkngood said:

i thought the Reason we did not Strengthen the team because we did not get the sky money up front so could not afford to buy players ? 

Whilst we didn't get all the Sky money upfront, I thought we'd got a loan from Barclays and made them the creditor of the Sky payments.

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46 minutes ago, norfolkngood said:

That was kind of my point ! so if we sell say at a guess 40 /50 million of young players then we should expect that money to be reinvested 

 

With every associated football club losing severe capital due to losing home match income, and with that more than expected to continue into next season too, what clubs do you expect to be parting with 40/50  million  for NCFC players as 40m will just about cover ncfc's own financial losses so where does the 40/50m reinvestment come from? 

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I thought it was £18m down, £25m up with the £10m owed to HMRC. 

So £3m deficit - minus Covid then add EMI, Max and Cantwell ...... plus parachute. 

Thats my rumour and conjecture for the day.....

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Cash flow is the issue you are all talking around.  The Sky EPL money comes in instalments.  We started the year with an overdraft, and the Board commented the overdraft facility was likely to be reached before the instalments had been received.  Much depends when the instalments from the Maddison sale and others was due to arrive as well.  That would have put a ceiling on how much we could splash at the beginning of the season, even if instalments could have been negotiated.  As others have said in the absence of a rich owner to cover / guarantee borrowings, we have lived wholly within our means.  

Going forward, the parachute payments will also come in instalments.  We may have cleared the overdraft and other borrowings, we may also have negotiated a reduction in salary payments (although I'm sceptical that this is true of all the squad), but still see no great spare cash available for lots of new players. 

As I've said in another thread, much depends on contractual situations, and I think there are no significant contracts ending this summer.  So I really doubt there will be wholesale changes this window, despite the hints from Webber.  We cannot afford to buy out contracts to move players on and pay new salaries.  Which doesn't mean to say post-Covid we are not relatively financially sound in comparison to other clubs. That will stand us in good stead by the January window.

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