Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
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 revaluation reserve. Which is completely separate to the Profit and Loss reserve, you mean.
Chillibeano wrote: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.
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.
Mrs Barista wrote:It does. These only show the financial results for 2008, a single year, though and not the overall balance sheet.
What I would say is that few clubs operate with robust business models that are self-sustaining, apart from Leeds and Hull FC, which is disappointing. Whether it's Davy at Huddersfield, Wilkinson at Salford or Moran at Warrington, there is huge over-reliance on individual benefactors to just keep putting their hands in their pocket. The salary cap is working in terms of levelling out the competition, but not in terms of helping clubs manage their financial positions responsibly. You do have to wonder how much longer the operation in London will go on and what purpose it serves other than a weekend away for supporters of the other clubs.
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.
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
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.
I agree the coach is an unnecessarily cheap option, but I'd settle for FC's balance sheet (which shows half your level of debt), 5 years of profitability, and independent credit rating over yours any day. Admittedly you've made some great investment decisions, though, like the £50,000 Hudgell said was spent on Saltend facilities.
As for ripping the fans off, that'd be charging £60 for a 2010 membership scheme in July 2009 that according to your chairman the fans don't understand, wouldn't it? Or ordering a £5 pair of socks from your website and automatically having a basket total of £10.50 - £5 to post them (a pair of socks! ) plus a default donation you have to opt out of.
Anyway, playingwise we're both on zero points, aren't we?
Mrs Barista wrote:I agree the coach is an unnecessarily cheap option, but I'd settle for FC's balance sheet (which shows half your level of debt), 5 years of profitability, and independent credit rating over yours any day. Admittedly you've made some great investment decisions, though, like the £50,000 Hudgell said was spent on Saltend facilities.
As for ripping the fans off, that'd be charging £60 for a 2010 membership scheme in July 2009 that according to your chairman the fans don't understand, wouldn't it? Or ordering a £5 pair of socks from your website and automatically having a basket total of £10.50 - £5 to post them (a pair of socks! ) plus a default donation you have to opt out of.
Anyway, playingwise we're both on zero points, aren't we?
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. [/quote]
So does the Balance sheet show a credit balance of exactly the same value as the asset for the players? And do you know if they re value this each year or if it remains constant? Just curious from a financial / accounting point of view. thanks
Joined: Jul 31 2003 Posts: 36786 Location: Leafy Worcester, home of the Black Pear
Chillibeano wrote: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.
Hold on to me baby, his bony hands will do you no harm It said in the cards, we lost our souls to the Nameless One
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
jibson1 wrote:So does the Balance sheet show a credit balance of exactly the same value as the asset for the players? And do you know if they re value this each year or if it remains constant? Just curious from a financial / accounting point of view. thanks
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.
Mrs Barista wrote:Fully agree. Catalans has been great IMO - competitive team, strong local interest and support, but if London and Celtic were replaced by Widnes and Halifax can't say I'd be bothered. Wonder how much money's been spent trying to get London going over 30 years for what - gates of 3k? Time to stop throwing good money after bad IMO.
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.
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.
Still a better one than losing £1/2m every year though isn't it?
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