Chairman Support from the Board

[Essexyellows]

Leicester, Everton, Southampton and several others have all posted losses North of £60 million.....each.

Fair play to our Board for keeping the club functioning and something we can all look forwards to getting back too.

 

[RgYellows]

Fair enough, I'll readily admit I'm not an expert in this sort of thing. Does the point not remain though that without that injection of capital the club would have otherwise failed to pay off its costs / debts and been further in the red (or less far in the black, as the case may be)? Or is it more that the 3.3m was used to pay off debts owed to third parties?

Investing in equity will not impact your profit or loss for the year. It will add some cash to help meet expenses or pay off debt or make investments or what have you, but it is kept separate from the P&L. I doubt you want the owners to have to chuck millions in each year, but it shouldn't be propping up the profit figure.

The profit is, however, impacted heavily by player trading. You recognise a profit on a sale immediately, but spread the cost of a purchase over the life of a players contract.

 

[OUFCGav]

How does that not fall foul of any EFL FFP rules?

the loss was for last season, not this season. they may be in trouble if they lose as much this year.
The limit is measured over 3 years, and the limits are calculated with a per season amount that is higher if the club has been in the Premier League (£35m for each PL season, £13m for EFL) - so as Bournemouth have spent the last 3 years in PL and then got relegated their combined 3 year losses can be £105m. Their issue will be next year - as their 3 year loss limit will be down to £83m - given that 1 year was a £60m loss, means the other 2 years can only be £23m combined,

 

[werthersoriginal]

the loss was for last season, not this season. they may be in trouble if they lose as much this year.
The limit is measured over 3 years, and the limits are calculated with a per season amount that is higher if the club has been in the Premier League (£35m for each PL season, £13m for EFL) - so as Bournemouth have spent the last 3 years in PL and then got relegated their combined 3 year losses can be £105m. Their issue will be next year - as their 3 year loss limit will be down to £83m - given that 1 year was a £60m loss, means the other 2 years can only be £23m combined,

Look, dont come on here with your knowledge and facts, OK? MODS!!

 

[OUFCGav]

Look, dont come on here with your knowledge and facts, OK? MODS!!

oh, and apparently there is Covid related wriggle room....

 

[battman]

Obviously it's good news that the finances showed a profit over that financial year, but we all suspected at the time that player sales had benefitted the club, and now with it being more than a year after the club couldn't allow fans in (bar the couple of weeks where 1000 got in), it's likely that a lot of that profit will have been eaten up due to Covid.

Although we're in a much better position than most clubs, as we sold Dickie in the summer and bought Cooper & Clare for fees that wouldn't have come close to what we sold Rob for. Also over the years we've had to operate with a restricted amount of match day income being received, so that's an area where we won't be hurt as much as other clubs. So where that leaves us when this current season's finances are revealed? I can't tell you, it probably won't be great, but it's not as much as many other clubs at our level.

It feels like a long time since the multiple HMRC snafus I'm telling you.