Club accounts

[Alan Vit]

20 hours ago, TJHValiant said:

Read page 9. Barclays, ten year loan. From June 2020. That’s a loan, 2.5% interest to a bank. Not nonsense. 

 

20 hours ago, JoeB2 said:

120k worth? 

She’s lent us 8.5m interest free ffs

"Measures were introduced during 2020 to support businesses affected by COVID-19 such as loans, grants and tax allowances. The Bounce Back loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000, at a low interest rate, guaranteed by the Government."

As I read it, the PVFC company took advantage of a very cheap loan (£50,000 it appears), guaranteed by the Government, which they could pay off at £5,000 capital plus interest p.a., and they could use the initial £50,000 capital for purposes such as buying infrastructure / equipment rather than having to fund those with more expensively sourced money.

If I have read that correctly, it is good business practice and to be commended.

[Alan Vit]

17 hours ago, TJHValiant said:

The interest may not be owed to Carol, it is owed to the creditors. My point is, it is the club in debt, not Carol personally. If it all goes wrong, the club goes bust, not Carol. 
 

Nothing sinister about that, it’s the case with any business but the idea she is some saviour putting herself on the line for Vale is wide of the mark. 

No I think it is your negative interpretation which is wide of the mark.

Any debt which may be owed to financial institutions by PVFC Ltd will have required guarantors - either the Government in the case of the Bounce Back loan or (if there is any other debt owed to financial institutions) personal guarantor(s) from at least one of the directors of PVFC Ltd (which in practice certainly means Carol and possibly also Kevin on a "joint and several" basis).

But much the greater proportion of the debt seems to be owed by PVFC Ltd to one or more of Carol and Kevin's other companies.

The guarantor terms of those loans are not detailed, as far as I can see; they are detailed as "nil interest" and "repayable on demand", but the implication as I read it is that Carol (and Kevin) have authorised one or more of the other companies they control to make loans to PVFC Ltd which they control, so no personal guarantor has been required from the PVFC Ltd board.

So it definitely is Carol (and Kevin) via their companies making long-term interest-free loans to PVFC Ltd (which represents the club) and doing so well beyond the total of asset values that make up the club.

Therefore the only one(s) who could call in that debt are Carol (and Kevin) and it is certain that, if the club did go into administration (again), they / their companies would only receive back a small percentage of the money they have put in.

Or to put it another way Carol (and Kevin) actually are the continuing saviours of the club and the club will continue to survive, and to develop further to thrive, based on their generosity and commitment to the club.

That's my best guess based on a quick reading of the accounts.

[valiant_593]

1 hour ago, Alan Vit said:

 

"Measures were introduced during 2020 to support businesses affected by COVID-19 such as loans, grants and tax allowances. The Bounce Back loan scheme helped small and medium-sized businesses to borrow between £2,000 and £50,000, at a low interest rate, guaranteed by the Government."

As I read it, the PVFC company took advantage of a very cheap loan (£50,000 it appears), guaranteed by the Government, which they could pay off at £5,000 capital plus interest p.a., and they could use the initial £50,000 capital for purposes such as buying infrastructure / equipment rather than having to fund those with more expensively sourced money.

If I have read that correctly, it is good business practice and to be commended.

In my line of work literally every business did this. 50k is the max based on turnover and has a very attractive interest rate and repayment schedule. Not sure why it should be commended but the majority of businesses I work with took that option   

[Killersrevenge44]

There's something to be said about not buying players in the windows... What a mess! 

[valeparklife]

Football finances are spiralling out of control.

If clubs start giving £2k a week to a £1k a week player, other clubs either have to follow suit, or be left with the dregs and relegation.

This repeats for years.

We're in a position now where every club is losing money every season.

You either do it and lose money, or spend within your means and get relegated.

Your recruitment has got to be elite level to buck this trend which is easier said than done.

Sent from my SM-G981B using onevalefan mobile app

[Bald Eagle]

Congrats Carol - money well spent!  All that to end up exactly where we started - but bizarrely with a worse squad than the famous ‘deadwood collection’.  

[Bald Eagle]

2 hours ago, valeparklife said:

Football finances are spiralling out of control.

If clubs start giving £2k a week to a £1k a week player, other clubs either have to follow suit, or be left with the dregs and relegation.

This repeats for years.

We're in a position now where every club is losing money every season.

You either do it and lose money, or spend within your means and get relegated.

Your recruitment has got to be elite level to buck this trend which is easier said than done.

Sent from my SM-G981B using onevalefan mobile app
 

We will have managed to both lose money AND get relegated

[darren1810]

Maybe she can stick 7 million on us going down at 1/7 with Bet365. 

[Refreshers]

The increase in staff can be explained by the large chunk of staff transferred from Synectics contracts to the club ahead of the buyout. Their wages were previously paid for by Synectics, but spent all their time on club business, just not showing on the club's accounts. 

Someone with links to people in Synectics could likely provide more detail on what the roles transferred were. 

[llcoolj]

Chuck money at a football club, Stockport have just done that