Joined: Aug 21 2011 Posts: 1326 Location: East Hull
Mrs Barista wrote: I blame Sadofsky's.
Whether said tongue-in-cheek or not, Sadofsky's did 'qualify' FCs financial statements and the reasons for this will have been investigated by APs advisers (one would have thought).
I have to say I dont like the way AP is spinning FCs losses; on face value it suggests he was kept in the dark about them. If he was, then he isn't the astute businessman I thought he was. Surely APs advisers scrutinised the books going back a minimum of 3 yrs, and been privvy to the latest trading estimates (monthly accounts, budgets, cash flows etc) at the time of buying the club. APs advisers will have highlighted the downward curve in gate receipts and other revenues, and conducted a detailed analysis of expenditure. AP will have been well aware of the loss situation.
Plus, a proportion of the losses will be of his own making, a product of his internal review which will probably impact more in the current financial period ie settlements re Agar, Obst, Rule and other staff unless he has a case to claw them back into the 2011 financial statements. Plus he has appointed Mcrea, Gentle, additional coaching staff, and admin staff which will all mount up. Add to this the investment in the new training facilities and the day to day running costs (which the old regime kept on a shoe string) you can see the base costs AP is talking about spiralling in the short term. Finally, AP has stated he is committed to investing up to the SC limit and in youth development. In other words, the investment (expenditure) of the new regime will mean FC looking at another financial loss for 2012 and beyond, and probably a cash injection from AP to meet them.
On a broader issue, I wonder why AP feels it necessary to keep making a statement about clearing FCs liabilities, and now how he will be underwriting FCs losses. Is this the Allam effect? The Allam's love to bang the drum and hail themselves as Hull City's saviours. Its well documented AP isn't an ardent rugby league supporter, and because of this simple yet important observaton, I wonder even more now about the motive behind his buy-out of FC.
Joined: Oct 19 2003 Posts: 17898 Location: Packed like sardines, in a tin
For mine, AP sees the chance to make some money through FC, but is in it for the long haul. With a successful club on the field, we would normally see pass sales and gates increase and merchandise sales increase too, so there is definitely money to be made.
Maybe in view of the possibility of a loss, the tax bill, the drugs case and the general falling out between the previous regime and the fans, he got the club at a better price than expected, coupled with the old board's willingness to sell.
We may be getting over-optimistic, but lets face it, a few years of debt for increased onfield success is a small price to pay. Optimism puts money in AP's pocket too.
Joined: Dec 29 2011 Posts: 3607 Location: Back row of Threepenny, forever
Kosh wrote:And nobody has yet come up with any actual figures.
Just to be clear, this article shows underinvestment into the club rather than excessive amounts of money taken out of the club. That may be another skeleton waiting to be unearthed but as yet there's no evidence that it happened.
If the search facility on here wasnt so slow and rubbish id find posts where a couple of people were suggesting how bad it was with Kath and Rule and how spin and flim flam was the order of the day. Its a shame those posters were put doen by the club apologists
He was right in the end
Last edited by frepneyboy on Tue Jan 10, 2012 9:49 am, edited 1 time in total.
Joined: Jul 31 2003 Posts: 36786 Location: Leafy Worcester, home of the Black Pear
Paul T - HKR wrote:Whether said tongue-in-cheek or not, Sadofsky's did 'qualify' FCs financial statements and the reasons for this will have been investigated by APs advisers (one would have thought).
IIRC the qualification concerned the inclusion of player valuations. This had no effect on P&L and hence on profit, but would have inflated the value of the club when it came to a potential sale.
Paul T - HKR wrote:I have to say I dont like the way AP is spinning FCs losses; on face value it suggests he was kept in the dark about them.
No it doesn't. In fact he specifically states that he went into the deal with his eyes wide open.
Rather than 'spinning' anything I'd say that AP is being exceptionally open about the state of the club and how the issues are going to be addressed. In particular the information about how the cost base of the club was unrealistically low and hence the profits of the past several years were unsupportable in the long term is interesting reading and sheds welcome light on an area of much speculation. Long may such 'spin' continue.
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: Oct 19 2003 Posts: 17898 Location: Packed like sardines, in a tin
Paul T - HKR wrote:Plus, a proportion of the losses will be of his own making
Will they? The report says "The club will be ending the financial year for 2011". Is that not April 2011? I though the financial year was April to April?
Genuine question - I'm not a finance person (as my bank manager keeps saying )
Joined: Dec 29 2011 Posts: 3607 Location: Back row of Threepenny, forever
Kosh wrote:Rather than 'spinning' anything I'd say that AP is being exceptionally open about the state of the club and how the issues are going to be addressed. In particular the information about how the cost base of the club was unrealistically low and hence the profits of the past several years were unsupportable in the long term is interesting reading and sheds welcome light on an area of much speculation. Long may such 'spin' continue.
Indeed
If Kath et al were as open as this it would have helped. AP is the only shareholder at the club, he has no reason to be so open, but well played that man
Joined: Jul 31 2003 Posts: 36786 Location: Leafy Worcester, home of the Black Pear
Chris28 wrote:Will they? The report says "The club will be ending the financial year for 2011". Is that not April 2011? I though the financial year was April to April?
Genuine question - I'm not a finance person (as my bank manager keeps saying )
The tax year runs April to April but a companies financial year can run over any 12 month period. Ours runs July to July for instance, and many others use the calendar year. I'm not sure if most SL clubs run November to November in order to align themselves with player contract years or not.
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: Oct 19 2003 Posts: 17898 Location: Packed like sardines, in a tin
Kosh wrote:The tax year runs April to April but a companies financial year can run over any 12 month period. Ours runs July to July for instance, and many others use the calendar year. I'm not sure if most SL clubs run November to November in order to align themselves with player contract years or not.
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