January Rumours .....

Discussion in 'Leeds United' started by Whitejock, Jan 2, 2020.

  1. Jammy 07

    Jammy 07 Well-Known Member

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    Doc, the clubs accounts for year ended 30th June 2019 are yet to be published.

    If Mike Thornton is stating a loss of £12m then I guess either he's been given a heads up by the accountants/club or it's a best guesstimate.
     
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  2. Doc

    Doc Well-Known Member

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    Correct I was just trying to explain how player trading worked.

    My understanding is that we have increased profits from breakeven on food and bar by a minimum of £7m. Hospitality is up massive, gate receipts have not been like this for 15 years, retail sales outperforming any recent season in memory. But as you say its when its all put together in the accounts and I reckon we can only afford to lose £11m max this year
     
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  3. Doc

    Doc Well-Known Member

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    im just going by memory so move those numbers back 1 year and the same result, we can only lose £11m this year?
     
    #83
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  4. Doc

    Doc Well-Known Member

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    Anyone any idea how much Radz invested in the TA refurb? Player sleeping pods, ground layout changes, building work etc?
     
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  5. Whitejock

    Whitejock Well-Known Member

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    Got to correct this last line. I mis-read Mike's essay. I should have said we might have posted a £36m loss if we hadn't had the fire sale.

    A quote from his essay:

    Leeds United probably did NOT fail Test 2 at the end of last season (that is, at the end of 2018/2019 season) with Adjusted FFP profits/losses of maybe +£4m + £0 – £13m = total 3 year FFP losses of only £9m.

    Without taking action this summer to manage FFP losses, Leeds United could well have posted 3 year total FFP losses next summer of £0 – £13m – £23m = FFP Loss of £36m. This is close to the FFP upper threshold of £39m loss where points are deducted; increasing costs by buying new players without first taking other action could have been disastrous. Now that the Club has managed the situation this danger has gone, in my opinion.
     
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  6. Whitejock

    Whitejock Well-Known Member

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    Btw, heard on the radio about the pitch. Apparently it's balding in places & well past its sell by date.

    It gets a new top layer each year at a cost of £1-2m, but the total restructure has been overdue for a while now for some time & has to be done soon. Indeed, we will not get promoted unless it's done! Cost of £5m!! <yikes>
     
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  7. lifecheshirewhite

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    You have just proven my point, £3-£4 million for Eddie lol, he's a youth player for god sake a good one but no one pays that for a youth player and certainly not Leeds, we are cheap like it or not, you will find out soon, and it won't be Bristol or Forest pay £3 million to loan player. Where do you think the over inflated prices for players we buy, and the under inflated prices for players we sell comes from.? IMO the club leaks these false prices to keep fans quiet.
    Ps we've loaned out twice as many players as we've brought in, but go on tell me clubs don't pay us anything but we pay out multi millions to loan youth players, are Leeds stupid. Did Rad become rich by being stupid ? No he's leading us down the path with fairy tails and some might believe it, but I don't, he's bought the ground and stabilised the club more after Celino, but over his time I don't believe he's put 1 penny into the team, in fact I believe he's taken a fair bit out.
     
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  8. lifecheshirewhite

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    The previous 3 years were 4 million profit, zero, and 13 million loss =9 million loss, we sold £30 million according to Doc which = 21 million profit over a four year accounting period, I know it spread over the contract but so is all the money we pay. We are no where near ffp.
    To say we might have lost 36 million if we had spent 23 million is rediculas as we spent next to nothing but recieved £30 million, so just wrong by 53million lol
     
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  9. Whitejock

    Whitejock Well-Known Member

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    Chesh, you seem to be a genius with numbers. Could you have a look at our league position & tell us if it's just 1 or 2 points we need to clinch auto promotion?

    FFS, for an accountant, you deliver beer well! <doh>

    Btw, I think I'll decline your offer to do my tax return. I don't really fancy doing time! :D
     
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  10. lifecheshirewhite

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    Looked at it for you WJ, and it's about 36/38 points we need for auto promotion, 1 or 2 points will get us around mid table, maybe I should do your tax return <laugh> <laugh> <laugh>
     
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  11. xbpod

    xbpod Well-Known Member

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    Chesh, as I said before you are using the buying and selling figures, FFP use the contract value figures, these two figures are not the same.
     
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  12. lifecheshirewhite

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    The contract figures are split over 3-4 years, but so are they for any players we buy, we could spend £30 - £40 million and only have about £10 million added to any loss, keeping us within ffp.
     
    #92
  13. 2 pennth

    2 pennth Well-Known Member

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    Welcome to the dark side:emoticon-0148-yes:
     
    #93
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  14. xbpod

    xbpod Well-Known Member

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    That's not how the system works for selling. Player bought for £3m pounds on a 3 year contract is only valued at £1m after 2 years contract wise, it doesn't matter how much you sell him for. The contract value is sliding over the contract term as after the 3 years he can walk away for free. So the contract value goes from fee paid to zero over the term of the contract.
     
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  15. lifecheshirewhite

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    Non of it counts for ffp and neither do u23 bought players, so if it was included in the 9 million loss from the other season, only a percentage not all would have counted as a ffp loss, not the whole 9 million.
     
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  16. lifecheshirewhite

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    All transfer money loss and profit counts in ffp, if you sell a player for money it doesn't count as zero. Lol and all the 30 million for players sold will count, just in instalments over 3 years or so.
    Your talking about how it's written down for tax purposes, but when a player is then sold the money installment is still then added into losses or profit.
     
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    Last edited: Jan 13, 2020
  17. xbpod

    xbpod Well-Known Member

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    But if Leeds sold a player for £5m last year all the £5m would not be shown as a profit for FFP, it would be £5m minus what ever the value of his contract was worth. So if his contract value was still £5m it would count as zero.
     
    #97
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  18. lifecheshirewhite

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    If you are going to count, his contract or wage then you have to include gate receipts, sponsorship, TV money and all the rest of the accounts, which as we sold £30 million pounds worth of players plus all other income would put us massively under ffp. Either way we are massively under ffp, and there is no valid excuse for not investing in the squad.
    All this if we had spent £23 million and didn't receive £30 million we would be on the limit, we didn't spend £23 million and did receive £30 million, they are the facts not the Rads dream scenario.
     
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    Last edited: Jan 13, 2020
  19. xbpod

    xbpod Well-Known Member

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    Of course you have to show all the other incomes, but you were just showing the transfer money above, and transfer ins and outs don't work how you had showed it above.
     
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  20. lifecheshirewhite

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    My point is we will receive £30 million and have spent less than Barnsley despite the clubs income being probabley 5x there income, we have no excuse for not investing and ffp isn't a reason as I don't believe we are within £20/30 million of it.
     
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