The Clubs Finances

[Tooj 17]

Someone on N-O posted these for the year ending at June 30th 2007.

 

- The club lost £33 million in the year.

 

- The balance sheet shows a position that is technically insolvent (ie net liabilities) to the tune of about £16 million.

 

- The change of ownership in July triggered a clause in the loan note agreement. This allowed the lenders to demand repayment of £45 million within 60 days instead of it being paid by instalments up to 2016.

 

- After the takeover Ashley stuck in £75 million to pay off the loan notes and also to get the club's overdraft back within the agreed limits. Ashley had to give assurances that he would support the club financially. These assurances plus the £75 million cash injection means the club isn't insolvent and the auditors could give a clean report.

 

- The directors now are Mort and S.J. Hayward and J.D.W.Barnes. No idea who those last two are.

 

- The club received a total of £6.7 million from insurers and from the FA in respect of Michael Owen's injury.

 

- The club spent £2.9 million on professional advice on a refinancing project. This was aborted when Ashley took over.

 

- Douglas Hall got a payoff compensation for losing his job of nearly £1.2 million. Freddy Shepherd got nothing.

[Dr Gloom 22540]

shepherd got enough tbf.

 

i'm surprised we got as much as £6.7m for owen. decent that

[Happy Face 29]

-

 

- The club spent £2.9 million on professional advice on a refinancing project. This was aborted when Ashley took over.

 

Christ! Would have been cheaper to restructure our finances with one of the twats that advertise during Jeremy Kyle.

[Tooj 17]

I'm not sure where he got them from btw, I just know you folk like a good financing debate so thought I would post it.

[East Stander 0]

Other interesting points (to me anyhow!) revealed are:

 

As well as paying off the loans for the ground redevelopment (plus an extra £4 mill hit for doing so) Ashley has paid off a loan of £4.5 mill and £1.5 mill on the training ground and £8mill loan on future broadcasting income! These loans had not been detailed in previous accounts.

 

We also find out now that Kenneth Shepherd (spit!!) charged the club £82,000 for consultancy through his company Triple S Sports Consultancy for 2007. This is still outstanding (hmm I wonder why ) And his company still owe £9,000 for office rent.

 

A key point too is that Shepherd received no compensation for loss of office (always shown in previous accounts that 3 years would have to be paid) but Douglas Hall got £1.1 mill and the others (Hall's sister, Revill even Bruce Shepherd) were paid compo.