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9 minutes ago, Borodane said:

2 million profit in a season with parachute payments and big sales of Adama and Gibson for a combined 33 million. Thats roughly 68 million for those alone. 

Ouch this season's finances are going to hurt as we've only made a modest transfer income of around 9 million if figures on Transfermarkt are correct. We've obviously reduced wages but there will still be MASSIVE deficit. Can see even more cost cutting in the summer by selling some priced assets and replacing them with loans and cheap players.

That's how I read it as well.

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13 minutes ago, Denzel Zanzibar said:

Hilariously the Gazette are trying to spin 2m profit as a good thing

It unquestionably is a good thing.

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Just now, Will said:

It unquestionably is a good thing.

As I indirectly mentioned in my post above that 2 million should have been ALOT higher to give any comfort for this season. Take out the 68 million from Gibson, Adama and parachute money and see where that puts us now. The deficit this season is going to be massive.

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Hello @Dan_Boro_Till_I_Die or @DanFromDownSouth. Sorry lads. I know one of you knows your stuff on accounts but cant remember which one. 

Will one of you give us a simplified version of what today's accounts means? Thank you.

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4 minutes ago, Will said:

It unquestionably is a good thing.

Really? I think Borodane has it spot on to be honest. It's very much worth questioning that we made the money we did with significant parachute payments and player sales, things this season we haven't had. Do we have to have that money to make a profit? I'd say that's a pretty significant question to ask as it concerns the long-term sustainability of the practices the men at the top use.

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14 minutes ago, Borodane said:

As I indirectly mentioned in my post above that 2 million should have been ALOT higher to give any comfort for this season. Take out the 68 million from Gibson, Adama and parachute money and see where that puts us now. The deficit this season is going to be massive.

It's impossible to see where that puts us now as we don't know the current situation on wages. I'd be confident saying that they've dropped at least as much in the current reporting period as they did in the newly reported one, but that's pure speculation. We've also made significant player sales again, bringing in well over £10m from that.

A £2m profit coupled with our £6m loss last season leave us with £35m of allowable losses for the next reporting period (This will probably be higher as all academy costs are exempt as well as other things), which from a very brief glance at the figures seems like we should be within.

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3 minutes ago, Will said:

It's impossible to see where that puts us now as we don't know the current situation on wages. I'd be confident saying that they've dropped at least as much in the current reporting period as they did in the newly reported one, but that's pure speculation. We've also made significant player sales again, bringing in well over £10m from that.

A £2m profit coupled with our £6m loss last season leave us with £35m of allowable losses for the next reporting period (This will probably be higher as all academy costs are exempt as well as other things), which from a very brief glance at the figures seems like we should be within.

Wages dropped from 42 to 35 million iirc. Even if it drops by the same (7 million) and the transfer surplus this season is 10 million that still leaves us well short of the 68 million we are missing in income from last season. That's rougly 50 million we need to find and that's just not going to happen. I think we are balancing on a knifes edge regarding FFP and any offers for Fry, Coulson, Britt etc. will be considered. These reports have not made me any easier regarding our future and only a 2 million profit last year looks very ominous to me. Unless there is some accounting technicality regarding the big sales that can carry on into the coming years.

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Let's face it. The state of football and finance in general is one massive messy boulder of elastic bands that no man can fathom. This has become something that we have to partake in to compete as a club.

MFC have made a lot of cuts this season, staff wise. A person who has lost their job in accounts for example, might be on the same amount per annum that a player would earn in a week. Old news now, but still as ridiculous!

Watching players give interviews with every possible blank space their training top filled in with a betting company logo is sad really. Sad that we have play that game, to play the game. It's hideous, it really is.

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Even giving us that extra £35m+ allowance doesn't mean we're operating sustainably though. It gives us allowable losses, losses that I suspect we will be making with the lack of big money coming in from player sales and parachute payments. The difference in income between then and this season is surely quite significant and may well account for a significant amount of that loss. If anything, I'd say it raises the question of why we spent so much in the same window we sold Adama and Gibson too though admittedly that's more about the benefit of hindsight in knowing we didn't even finish in the play-offs.

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10 minutes ago, wilsoncgp said:

Even giving us that extra £35m+ allowance doesn't mean we're operating sustainably though. It gives us allowable losses, losses that I suspect we will be making with the lack of big money coming in from player sales and parachute payments. The difference in income between then and this season is surely quite significant and may well account for a significant amount of that loss. If anything, I'd say it raises the question of why we spent so much in the same window we sold Adama and Gibson too though admittedly that's more about the benefit of hindsight in knowing we didn't even finish in the play-offs.

I'm not sure it requires hindsight to see that spending £7m and £8m on Flint and Saville was a *** poor decision.

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11 minutes ago, Will said:

I'm not sure it requires hindsight to see that spending £7m and £8m on Flint and Saville was a *** poor decision.

Well we did a good job in recovering most if not all of the Flint outlay. We wont be as fortunate with Saville though!

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50 minutes ago, Borodane said:

Wages dropped from 42 to 35 million iirc. Even if it drops by the same (7 million) and the transfer surplus this season is 10 million that still leaves us well short of the 68 million we are missing in income from last season. That's rougly 50 million we need to find and that's just not going to happen. I think we are balancing on a knifes edge regarding FFP and any offers for Fry, Coulson, Britt etc. will be considered. These reports have not made me any easier regarding our future and only a 2 million profit last year looks very ominous to me. Unless there is some accounting technicality regarding the big sales that can carry on into the coming years.

That 35m includes the following wages we have lost going into this season: Braithwaite, Mikel (6 months), Besic (loan), Flint, Downing, and we have only paid Randolph half the wages we paid him last year due to him leaving in Jan.

I'd imagine we have cut much more than 7m from it this time around.

As Will has already stated, academy costs (Estimated £2m a year for Cat1) and things are factored into these kind of accounts which don't count towards FFP. That means the £6m loss in last years accounts and the £2m profit in this years actually count even better toward FFP, bringing us to around a straight £0 in FFP eyes (I'm sure there are other costs they can deduct but I dont know the ins and outs of it)

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11 minutes ago, OldManGravz said:

That 35m includes the following wages we have lost going into this season: Braithwaite, Mikel (6 months), Besic (loan), Flint, Downing, and we have only paid Randolph half the wages we paid him last year due to him leaving in Jan.

I'd imagine we have cut much more than 7m from it this time around.

As Will has already stated, academy costs (Estimated £2m a year for Cat1) and things are factored into these kind of accounts which don't count towards FFP. That means the £6m loss in last years accounts and the £2m profit in this years actually count even better toward FFP, bringing us to around a straight £0 in FFP eyes (I'm sure there are other costs they can deduct but I dont know the ins and outs of it)

Maybe, but even if you're right it also leaves us with 0 to spend on wages and fees unless we sell. Looking at the finances we will have to at least make up the missing parachute money (34 million) which is roughly our entire wage budget last season. On top of that we roughly had a transfer surplus of 23 million last season where as this season it's around 9 million going by the figures on Transfermarkt. The cuts in wages this season won't even make up the 14 million less in transfer income from last season to this season. As it is we look deep in the mire.

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11 minutes ago, Borodane said:

Maybe, but even if you're right it also leaves us with 0 to spend on wages and fees unless we sell. Looking at the finances we will have to at least make up the missing parachute money (34 million) which is roughly our entire wage budget last season. On top of that we roughly had a transfer surplus of 23 million last season where as this season it's around 9 million going by the figures on Transfermarkt. The cuts in wages this season won't even make up the 14 million less in transfer income from last season to this season. As it is we look deep in the mire.

Were our parachute payments really £34m this year? I've had a look at the accounts but not sure what theyd be under. It seems a lot though considering "relegated clubs receive a percentage of their final earnings in the Premier League in which they were relegated. These drop progressively over a three year period – 55% in the first year, 45% in year two and 20% in the final year." (Taken from google).

 

If it was 34m this year that would mean our earnings were £170m in the Prem season and I'm not sure that sounds correct (may be wrong)

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