Company accounts

[PureVale]

Basically we're in the same position as the vast majority of clubs in L1 and L2, and probably the Championship lower few - in that we struggle to meet our running costs and are heavily supported by our owner.

 

We need more £ in and less £ out.

 

Therefore, we as fans need to improve the £ income from attendances - and RP needs to reduced the wasted salaries within the squad.

 

It's up to us all.

[Trampilot]

Basically we're in the same position as the vast majority of clubs in L1 and L2, and probably the Championship lower few - in that we struggle to meet our running costs and are heavily supported by our owner.

 

We need more £ in and less £ out.

 

Therefore, we as fans need to improve the £ income from attendances - and RP needs to reduced the wasted salaries within the squad.

 

It's up to us all.

 

Quite right. I would guess 99% of football clubs are in the same position - even in the premiership. That's why when they get relegated they almost always go bust.

[valeparklife]

In simplistic terms since Dec 12 l have been putting in about 80k a month for what you see today about 1.25 x what ST monies raise

No interest has ever been paid or will be on my DLA

 

Thanks for replying Smurf. I love what you're doing for the club and support you fully. Appreciate you clarifying the matter.

[Santa]

How is the season ticket payment plan treated differently in the accounts to any season ticket sales made before 30/06/15?

 

They will show up in the cash position but they should both be deferred income for the following financial year, shouldn't they?

[Alan Baker]

In simplistic terms since Dec 12 l have been putting in about 80k a month for what you see today about 1.25 x what ST monies raise

No interest has ever been paid or will be on my DLA

 

That implies that you're putting as much in this month as you did, say, 2 years ago and that the business hasn't improved at all in that time despite better commercial revenues.

[Heatwave]

Quite right. I would guess 99% of football clubs are in the same position - even in the premiership. That's why when they get relegated they almost always go bust.

 

Unless they can manage with the parachute payment they get for being relegated from the Prem. I'm not aware of there being one from the Championship.

[stupers]

How is the season ticket payment plan treated differently in the accounts to any season ticket sales made before 30/06/15?

 

They will show up in the cash position but they should both be deferred income for the following financial year, shouldn't they?

 

Deferred income is a credit on a balance sheet, so will be lumped in with creditors I would presume. Like I said earlier, you can't draw many conclusions from what is on the accounts.

[Tramp Casual]

Acurrals

[Tramp Casual]

Acurrals

 

Rather accruals

[Santa]

Fair enough. I know boss all about accountancy. I leave all that stuff to the Cima w***ers at work. What paper is everybody on?

[eh up nah]

Fair enough. I know boss all about accountancy. I leave all that stuff to the Cima w***ers at work. What paper is everybody on?

 

F3 (Financial Strategy)

 

That, then case study, then done.

 

4 years it'll have taken

[CambridgeDon]

First of all, a big thank you to Smurf for continuing to invest so much in the club. I am sure that the vast majority of fans feel this way. It is much appreciated.

 

What's disappointing is that, despite this investment, performance has not improved as much as the chairman (and the fans) would like to see and, consequently, gates have been falling. So, inevitably, any investor in the club (and, at the moment, there's only one) will be asking how long it can continue. What's letting us down so far this season is, of course, our performance away from home.

 

Norman's words about the manager are quite sobering: doing reasonably well at this relatively early stage but not well enough, with the expectation that we should be in the top six given the level of investment. Quite understated by Norman but quite clear. I really hope that Page and his management team can live up to these expectations.

[Guppy 4 England]

Why are people trying to draw conclusions from the accounts? Dont they basically show the true position we are in. A small club, punching above our weight having been dragged out of administration three years ago? Ask Coventry or Plymouth if they would prefer our position?

 

Personally i think these accounts show a much better reflection than the V2001 accounts which used to show we were close to breaking even, wouldnt suprise me if these accounts include bills paid by Norman in respect of that failing company.

 

Where are the smurf bashers now, those who didnt believe he had put a significant amount in?

[SGW]

Amazing number of accountants on this thread!

 

I'm not a Vale supporter but come to the odd match, so I've got no axe to grind either way, but the things that stand out for me in the accounts are:

 

1. Why are there no comparatives (the previous year's figures)? It is a brand new company, so the previous 2 or 3 years of trading since Smurf became owner must have gone through a separate company. Has there been a transfer of trade from Oldco to Newco and why?

2. What are the intangible assets at £1.8m before amortisation? If this were still the same company that had taken the club out of administration I would guess at goodwill (the difference between what you pay and the value of the individual assets) although it seems like a big number (but then I've got no idea what the going rate for FL clubs is). As this isn't the same company, your guess is as good as mine.

3. Smurf is owed £2.5m. If we assume that £1.8m of this relates to the intangible asset introduced from somewhere, then in operating terms he has funded the club to the tune of £0.7m for the year. That broadly does tie in with what he says about the club costing him £80k pm to run.

4. We can assume that what Smurf is owed isn't secured against any of this company's assets (because there would need to be an additional note if that were the case). On the other hand, it seems fair to say there would be sod all assets to secure the debt against anyway.

5. The club lost £1.3m for the year (we know this because that's the negative shareholder funds and we know that this is the first year of trading).

6. The figures haven't been audited (if they had, there would be an additional report) but, assuming the company qualifies under the criteria, there is no legal requirement to do that.

7. The accounts haven't been well drafted by whoever the club's external accountants are and some required information is missing: there is no share capital note, which there ought to be, and there is no accounting policy to explain capitalisation and depreciation policies (and in which best practice would be to disclose the nature of the intangible asset). There are also various stylistic and grammatical errors which aren't any great shakes but will annoy accountants.

8. On the other hand, getting these out and published only 4 months after the company year end is pretty good going as these things tend to take time and there's another 5 months that could have been taken before the law requires submission of the figures.

[stupers]

F3 (Financial Strategy)

 

That, then case study, then done.

 

4 years it'll have taken

 

Good luck with it. I qualified in 2012. Don't believe the bull**** about the case study. As long as you understand the rest of it you'll be fine.