£30m Covid loss

[dylanisabaddog 5,013]

The accounts are out today and they confirm that we lost £30m due to Covid-19. Small change to most of the Premier League I'm sure but an absolute disaster for us. 

[Badger 2,412]

https://www.edp24.co.uk/sport/norwich-city/ncfc-publish-financial-report-for-2020-21-season-8441244

[hogesar 9,760]

Huge difference for us, you're right. 

[cambridgeshire canary 6,819]

5 minutes ago, dylanisabaddog said:

The accounts are out today and they confirm that we lost £30m due to Covid-19. Small change to most of the Premier League I'm sure but an absolute disaster for us. 

Does make you wonder just how much bigger our transfer window had been if not for covid and the sponsership issue.

[Graham Paddons Beard 2,450]

5 minutes ago, cambridgeshire canary said:

Does make you wonder just how much bigger our transfer window had been if not for covid and the sponsership issue.

In money terms 30m for covid and 3m for the difference between BK8 and Lotus. 
 

Whether that would have persuaded those put off by relegation clauses we’ll never know. 
 

 

Edited October 27, 2021 by Graham Paddons Beard

[Satriales 697]

So does this mean they cannot really afford to sack Farke even if they wanted to?

[PurpleCanary 5,586]

5 minutes ago, cambridgeshire canary said:

Does make you wonder just how much bigger our transfer window had been if not for covid and the sponsership issue.

The  sponsorship fiasco will have cost us only a very million, partly compensated for by Lotus stepping up. So not a serious factor, whatever the embarrassment. The greater worry is how it happened in the first place.

[Robert N. LiM 4,511]

12 minutes ago, dylanisabaddog said:

The accounts are out today and they confirm that we lost £30m due to Covid-19. Small change to most of the Premier League I'm sure but an absolute disaster for us. 

Yup. Basically the equivalent of us setting fire to the money we got for Emi.

[Badger 2,412]

4 minutes ago, Satriales said:

So does this mean they cannot really afford to sack Farke even if they wanted to?

? I do not understand your reasoning?

[Graham Paddons Beard 2,450]

3 minutes ago, PurpleCanary said:

The  sponsorship fiasco will have cost us only a very million, partly compensated for by Lotus stepping up. So not a serious factor, whatever the embarrassment. The greater worry is how it happened in the first place.

My guess is  that  The club followed a traditional line of DD when looking at this , and other , commercial relationships . As you would know Purple Due dulligence is mainly looking at numbers , finance , trading history , legal liabilities and contract security . What wasn’t checked , and still seemingly isn’t in many cases of M and A and other commercial relationships , was the social media platforms of BK8. With hindsight this seems crass , but at the time I can understand it . 
 

The other contentious area of course is the reaction . A lot of noise surrounded the issue that almost certainly by now would have died down. We ploughed a loan furrow in terms of morality which other clubs simply do not . Whether we should have done is another story altogether 

[PurpleCanary 5,586]

3 minutes ago, Graham Paddons Beard said:

My guess is  that  The club followed a traditional line of DD when looking at this , and other , commercial relationships . As you would know Purple Due dulligence is mainly looking at numbers , finance , trading history , legal liabilities and contract security . What wasn’t checked , and still seemingly isn’t in many cases of M and A and other commercial relationships , was the social media platforms of BK8. With hindsight this seems crass , but at the time I can understand it . 
 

The other contentious area of course is the reaction . A lot of noise surrounded the issue that almost certainly by now would have died down. We ploughed a loan furrow in terms of morality which other clubs simply do not . Whether we should have done is another story altogether 

What Lotus said recently was that they wanted to be the main sponsor but couldn't get their bid firmed up in time. That would explain the lack of comprehensive DD with BK8, if they suddenly became the only game in town and it was all rushed through.

[Graham Paddons Beard 2,450]

5 minutes ago, PurpleCanary said:

What Lotus said recently was that they wanted to be the main sponsor but couldn't get their bid firmed up in time. That would explain the lack of comprehensive DD with BK8, if they suddenly became the only game in town and it was all rushed through.

 

7 minutes ago, PurpleCanary said:

What Lotus said recently was that they wanted to be the main sponsor but couldn't get their bid firmed up in time. That would explain the lack of comprehensive DD with BK8, if they suddenly became the only game in town and it was all rushed through.

Quite possibly. Add into the debate that the numbers offered by BK8 were such that it made cancelling the Dafabet contract financially sensible , i would think BK8 very quickly became the main source of interest in comparison to other likely offers. 
 

[Michael Starr 521]

They would have roughly estimated a 30m loss over Covid and I wonder if that knowledge perhaps contributed to the moral compass being "temporarily rested" with the BK8 deal. A bit of added pressure to bring money in.