General Zod. wrote:The sort of "robust business model" that involves hiring a coach from Netto's, saves shed loads of cash by ripping off the fans and staying well under the salary cap by keeping the cash in order to post a profit only to go and buy it's players from the Antiques Road Show? - No thanks.

Beverley red wrote:I realy do get depressed when I see this argument trotted out every time the game out side the M62 is talked about Why wont the flat cap brigade see that if we do not expand the game is dead Wales & London are vital to our continued existance we should be asking for more clubs from there not abandoning 30 years of effort in London. What is the alternative a retreat to the clubs of the 1900,s? The report shows that non of our clubs are in good health even Leeds & FC are not imune from a shortage of cash. How long do you think this game would last if we lost the expansion clubs? SKY would pull out & they are the only real source of income we have. Union would snap up most of our players as League would have to revert to semi pro. Not expanding & spreading has not been an option since 1995 when super league went full time professional. It is no use looking back with rose tinted glasses this game was on the verge of bankrupcy untill Sky stepped in we had had 100 years to get it right & failed. We will not be allowed another 100 years we have to get it right or die.

Mrs Barista wrote:Revalued each year. So this year debit assets =+162,500, credit revaluation reserve (capital and reserves) +162,500.

The revaluation reserve includes both the player valuation plus a revaluation of tangible fixed assets.

Kosh wrote:Exactly. It's a not-very-subtle bargaining device when it comes to discussions with potential buyers, otherwise as far as I can tell it has bugger all effect on anything. Net worth is meaningless unless you're either selling a business or winding it up.

Gordon Gekko wrote:TBH i'm not interested in where they are posted to in the accounts i just want to know why they bother doing it at all if it means nothing.

Chillibeano wrote:Actually it 'potentially' does. Especially if you were required to remove them from your balance sheet.

If they were written off the balance sheet then this would mean the write down would either need to be shown as a cost in the P&L account or alternatively written off directly to reserves.

The thought has crossed my mind that the profit generated by FC for 2008 could potentially be purely due to an increase in the valuation of the players.

I am only summising and I wouldn't think this is likely, but you never know. Then again given last season I would think a reduction in the value of the players would be much more likely!!

Mrs Barista wrote:Sweet baby Jesus and the orphans. Get a copy of the accounts and check the balance sheet which includes a revaluation reserve. Just to spell it out in double-entry bookkeeping terms, the accounting entries go to fixed assets in the balance sheet, and the revaluation reserve, in the balance sheet, but not the P&L account, nor the P&L reserve.

Gordon Gekko wrote:TBH i'm not interested in where they are posted to in the accounts i just want to know why they bother doing it at all if it means nothing.

Robbo4 wrote:If only Vince was here to sort this mess out for us.