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kobayashi

Sheffield Wednesday Fan
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About kobayashi

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    Sheffield Wednesday Reserves

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  1. A Financial guarantee is not bond of good faith it’s a legal agreement that has to be issued by an organisation that you know will be their and have the funds to make good on the guarantee such as a bank or insurance company. My company has just agreed to buy a new machine. We were required to pay a €m deposit for which required from the machine manufacturer a bank backed guarantee which would require the bank to refund the deposit to us if the manufacturer fails to deliver the machine in the autumn. The guarantee will be marked against their facility and they will pay a fee based on the guaranteed amount, the duration of the guarantee and the banks assessment of their credit worthiness. For a football club, setting aside the unlikelihood that any financial institution would undertake to issue such a guarantee the fee and potential contract costs of a footballer the amount of facility, the duration and high risk then level of fees required would be astronomical £m per year. There is a reason why such a system does not exist and that is because it is commercially impossible. As for escrow, owners of football clubs operate them as limited liability companies for a reason. To limit their liability. A business owner of a football club or any other company could never and would never take such a step. If you think that the owners of the EFL Clubs are going to agree on a system that individually would require them to deposit tens of millions in escrow and collectively £billion then you are wrong. Few of them could, none of them would.
  2. It’s not unavoidable for the owner of a liability company. No owner of any business would guarantee let alone deposit funds in an escrow account to cover the full potential cost of future salaries to be paid to the employees of the company he owns.
  3. No it isn’t - a players future salary is not a BS liability. Players salaries are charged to the income statement as they are earned just like any other employee.
  4. Not one owner of an EFL club would be prepared to put tens of millions into an escrow account to cover the value of player contracts.
  5. How would you secure such a guarantee and if breached how would you pursue it against an owner based in say Thailand.
  6. Why is not supplied until PL football is provided? Because it is explained as a 10 year season ticket that will not commence until the club are promoted. The years prior to that are presented as being FOC.
  7. As the scheme has been explained not 1p of any cash raised will be considered for this years FFP or any other years until the club is in the PL.
  8. Because normally you cannot recognise the sale of goods in a future year in the current years Income statement in which case you raise £10m of cash which is obviously a benefit but if you need the cash but not 1p of that would be factored into the current year FFP calculation or any future Championship FFP calculation. The income would only be recognised once the good sold is being supplied i.e. people are watching PL football at SWFC but at that point EFL FFP rules don't matter anyway.
  9. It will account for it but will only on the Balance Sheet unless promotion is achieved Day 1 it would have Asset cash and a matching Liability deferred income. Day 100 it would have less cash asset but still the original Liability of deferred income Day 1000 it would have spent all the cash so no asset but still the original liability. This is weird - either the cash really has run out or there is some accounting ruse possibly around the remoteness of the future supply of the good which enables earlier recognition of the income.
  10. But we have always been told that finance for Mr Chansiri is not an issue...so it is legitimate to wonder why a supposedly cash rich business owner would propose such a scheme.
  11. Totally weird...why would a supposedly cash rich business owner need to come up with schemes such as this?
  12. I didn’t say it was the same. The question was whether a club had been denied a promotion in the past and the simple answer was that Swindon had.
  13. Swindon Town in 1990 were denied their promotion to the old Div 1 because of financial irregularities.
  14. He must go to sleep every night wishing he'd never heard of Sheffield Wednesday. I imagine that it must be pretty difficult for Mr Chansiri to admonish his wife when she comes home with some "bargains" from shopping in downtown Bangkok when she has the simple retort of "Don't have a go at me for spending money, you bought that bloody football club". Poor lad.
  15. Great, but what is your point? Not everyone can or wants to go to every match but they would like to go to some games but probably it will be fewer or none at a +50 to +100% mark-up vs the ST price. I don’t go to the pub every night but when I do I pay the same as the guy who does.
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