Swans made a £14m loss but not all bad

A last run of managers is bankrupting us ....lol , well along with signings like Tabanou and Eder . We should be back on track the next set of accounts . Our overall Premier League expierence up to and including this one in the financial aspect is unheard of though ... in a good way . When you couple that with our average table placement of 10th , it's a miracle really .

 

Correct. Bad decisions cost millions!

 

All clubs make bad decisions....We are still in good shape that is predicted to get even better....It is remarkable we ended the financial year only making a £14m loss....

 

If last season was the first year in the Company's history then your assertion would be correct.

However, Retained Earnings at the end of July 2015 stood at c£15.5m. Therefore, after accounting for the Reported Loss of £14.6m (after Tax?), the Company/Club would have started the Current Year with Retained Earnings of c£0.9m.

 

........and if we hadn't made a £14 million pound lost we have been in the far stronger position of starting with c£15.5m!

 

Arguably, if the Club hadn't sustained the Loss, then we may have been relegated last season.....

What is important is sustainability through the (economic) cycle, if a loss is made in one year, then hopefully secure a sufficient profit the following year.

In any event, Cash is more important than Profit.

 

.......so you mean we gambled last year! That's what happened to Leeds United. If we continue like that it will eventually catch us out.

 

Don't think that I used the word "gamble" nor was that implied.

What Leeds did was to securitise future income based on the assumption that they would continue to be at the top end of the PL - that was gambling.

The Club has already given guidance that it will report a Profit of £10m this year - therefore broadly offsetting last year's loss.

Securing control of the Stadium should provide the opportunity for growing Commercial Income going forward.

 

You didn't say we gambled, but if you say "if the Club hadn't sustained the Loss, then we may have been relegated last season.....", then that would appear to have been a gamble because the possibility of relegation is always there!

 

Relegation - or the failure to achieve what is "targeted" - is a risk that has to be managed.

 

I agree with Taffvalerowdy in this discussion. That is all.

 

I would also look forward to much greater overseas merchandise revenue in coming years primarily due to our new owners. You can guarantee that Swansea merchandise will be made available and marketed better and more professionally in more countries across the world than ever before due to our change of ownership.

 

Sounds like my bank account.

 

Yep, it's a risk. Just like a gamble!

 

A gamble is when you effectively bet the Company's very future: a "considered" risk is something different, very different.

Companies manage risk every single day.

 

Risk/gambling, call it what you want. It's the same in my book. People buy shares, play on the lottery, bet on horses. Some call it risk, I call it gambling.

If you want a debate on the difference between risk and gambling feel free to carry on, but you'll be on your own. Must be Groundhog Day in Swansea.

 

Leeds was the biggest failed gamble on record IMO