At least we’re not Wigan or West Brom

[Myra Hawtree 124]

Wigan deducted points again for not paying wages.
West Brom in financial difficulties with parachute payments finished and a £20m loan to service.

[mannings bandy legs 385]

33 minutes ago, Myra Hawtree said:

Wigan deducted points again for not paying wages.
West Brom in financial difficulties with parachute payments finished and a £20m loan to service.

I think you'll find we have loans to service.

[keelansgrandad 6,679]

I don't think West Brom see it as financial diffculties.

[Myra Hawtree 124]

Well according to FSA West Brom’s debts are spiralling and there are concerns from fans about ownership etc.

[nutty nigel 7,509]

And there was me thinking they had a Chinese billionaire owner and another year of parachute payments.

Hope they don't want to share our handcart...

 

[essex canary 491]

12 hours ago, nutty nigel said:

And there was me thinking they had a Chinese billionaire owner and another year of parachute payments.

Hope they don't want to share our handcart...

 

Maybe they will? They won't have another year of Parachute Payments.

Almost the same ground capacity as us. Slightly less average crowd. Non TV income less than two thirds of ours. Yoyo team in recent years though, unlike us, did survive the first 4 years of the last decade in the PL which probably inspired the Chinese guy to madly pay up to £200 million fior them alongside their history pre the last half century.

Then again their wage bill when last in the Prem was £77 million, fully £40 million less than our £118 million which Nephew Tom describes as normal. Normal for Suffolk perhaps. 

Where is that handcart?

Edited May 27, 2023 by essex canary

[nutty nigel 7,509]

22 minutes ago, essex canary said:

Maybe they will? They won't have another year of Parachute Payments.

Almost the same ground capacity as us. Slightly less average crowd. Non TV income less than two thirds of ours. Yoyo team in recent years though, unlike us, did survive the first 4 years of the last decade in the PL which probably inspired the Chinese guy to madly pay up to £200 million fior them alongside their history pre the last half century.

Then again their wage bill when last in the Prem was £77 million, fully £40 million less than our £118 million which Nephew Tom describes as normal. Nornsl for Suffolk perhaps. 

Where is that handcart?

No idea what this is about.

But there is an 'Action for Albion' group trying to take on their shiny Chinese billionaire owner. That sounds more ambitious than your 'bellyaching about nephews'.

[Don’t be Krul 398]

11 hours ago, mannings bandy legs said:

I think you'll find we have loans to service.

Really? To whom?

[Badger 2,405]

The biggest issue for West Brom fans is that their owner (Guochan Lai) has, in effect, borrowed (taken?) from the club. West Brom, as a business lent £5 million to another business that Lai owns (Wisdom Smart Corporation) and apparently there is little prospect of getting it back, although he has said that he will.*

The auditors have been unusually frank (imo, perhaps one of our accountants could clarify). They have said,

“Given that such funding or player trading is not guaranteed, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern.”

However, Lai is a multi-billionaire (estimated £2.8 billion) and Chinese, so to some is obviously a better owner than our pauper owners.

 

*“At 30 June 2022 and at the date of the approval of the financial statements, the company has yet to receive payment and so the full amount totalling £5,059,000 has been impaired to a carrying value of £Nil,” the accounts say.

https://theathletic.com/4365308/2023/03/30/west-brom-guochuan-lai-loan/

[essex canary 491]

@Badger

Great Post.

It must seriously call into question the 'fit and proper person test' that has been talked about in terms of Football Club Directors. Perhaps 'talked about' is the problem?

The Auditors logic must be correct in the circumstances because how could any of the Club's funds be secure given what has occurred?

Equally other circumstances could also influence the opinion on the Going Concern concept such as the ability to cut back on the Wage Bill in the light of significantly declining Turnover in the event of failure to return to the Premier League. They are not the only Club facing that challenge.

 

[keelansgrandad 6,679]

14 hours ago, Myra Hawtree said:

Well according to FSA West Brom’s debts are spiralling and there are concerns from fans about ownership etc.

One of my golf mates is a Baggie and was explaining it all to me. Financially they aren't too badly off even though they have run out of parachute payments. Its their owner who is using the club to finance other things that he is up to. The fans want him out. That last sentence sound familiar?

[Dr Greenthumb 746]

None of my baggies mates seem overly concerned about it. They just seem annoyed about the loans and lack of appearances the owner makes at the club

[PurpleCanary 5,554]

2 hours ago, Badger said:

The biggest issue for West Brom fans is that their owner (Guochan Lai) has, in effect, borrowed (taken?) from the club. West Brom, as a business lent £5 million to another business that Lai owns (Wisdom Smart Corporation) and apparently there is little prospect of getting it back, although he has said that he will.*

The auditors have been unusually frank (imo, perhaps one of our accountants could clarify). They have said,

“Given that such funding or player trading is not guaranteed, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern.”

However, Lai is a multi-billionaire (estimated £2.8 billion) and Chinese, so to some is obviously a better owner than our pauper owners.

 

*“At 30 June 2022 and at the date of the approval of the financial statements, the company has yet to receive payment and so the full amount totalling £5,059,000 has been impaired to a carrying value of £Nil,” the accounts say.

https://theathletic.com/4365308/2023/03/30/west-brom-guochuan-lai-loan/

Quite. Seriously, there is a potential problem with Chinese owners because of the frequent lack of clarity, to put it mildly, over their wealth and how solidly based it is. I suspect this was what Michael Wynn Jones was referring to some years back when he ruled out any such. The remark was taken by some as being racist but actually was probably just a sensible fact-based warning.

[nutty nigel 7,509]

7 minutes ago, PurpleCanary said:

Quite. Seriously, there is a potential problem with Chinese owners because of the frequent lack of clarity, to put it mildly, over their wealth and how solidly based it is. I suspect this was what Michael Wynn Jones was referring to some years back when he ruled out any such. The remark was taken by some as being racist but actually was probably just a sensible fact-based warning.

Michael Wynn Jones????

Edited May 27, 2023 by nutty nigel
🤔😂

[PurpleCanary 5,554]

Just now, nutty nigel said:

Michael Wynn Jones????

A mythical figure, nutty, like Santa Claus, or Big Foot or the Loch Ness Monster...🤩

[shefcanary 2,385]

@Badger such qualifications are rare; the auditors are basically saying they are signing off the accounts but are relying on the Directors word that everything will be okay, pointing out to the readers of the accounts that they can't place reliance on the assurances given about certain transactions, so don't come sueing us when those transactions fail to manifest!

So readers are put in the position of asking themselves do they trust the Board given the auditor's clearly have doubts? Very few will. If I was a company that had been selling services to them, without a written assurance from a Board director or better still payment up front, I would steer clear!

[mannings bandy legs 385]

6 hours ago, Don’t be Krul said:

Really? To whom?

We took out loans to cover the loss of revenue from Sky and BT coverage of games if I remember correctly.

[Badger 2,405]

2 hours ago, shefcanary said:

@Badger such qualifications are rare; the auditors are basically saying they are signing off the accounts but are relying on the Directors word that everything will be okay, pointing out to the readers of the accounts that they can't place reliance on the assurances given about certain transactions, so don't come sueing us when those transactions fail to manifest!

So readers are put in the position of asking themselves do they trust the Board given the auditor's clearly have doubts? Very few will. If I was a company that had been selling services to them, without a written assurance from a Board director or better still payment up front, I would steer clear!

Thanks Shef. I suspected that it was unusual but good to have it confirmed.

TBH, I find it hard to reconcile his reported wealth and the need to borrow £5m from West Brom (and his inability/ reluctance) to pay it back. I appreciate that he may have liquidity issues, but with reported assets of £2.8 billion, he should have been able to make some cash available by now?

Of course, the wealth figure is probably wrong, but he must have quite a lot of wealth if he could afford the £200 million he paid for West Brom.

[pete 318]

Lets see how our spending and team rebuild goes before we start to ridicule other teams.  A long term stint in Championship without Prem will highlight Self funding folly espoused by Delia.  Beware of Chinese owners need more Yanks.  Mark please we need you

[Badger 2,405]

11 minutes ago, pete said:

Beware of Chinese owners need more Yanks.

I am sure that there are exceptions, but as a general rule, US investors keep a pretty tight grip on the finances.

[keelansgrandad 6,679]

How about putting in a bid for Ryan Reynolds? First ever owner transfer.

[Terminally Yellow 2,448]

19 minutes ago, keelansgrandad said:

How about putting in a bid for Ryan Reynolds? First ever owner transfer.

I'm sure you thought that was funny when you posted it.