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Annual Accounts Published


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Not really debt free if we owed CC £4.5m

 

Also note 11 refers to a loan of £1.2m drawn down on 22 Jan 15, repayable 21 January 2016

 

Might explain why season tickets went on sale early !

 

We have as we know repaid the external loans of £5.1m

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Really don't think the season ticket monies in advance will be in escrow.

 

Hate to tell everyone that all season ticket holders are unsecured creditors and if the company went bust we wouldn't have much hope of getting all our money back

 

Reckon Chansiri has put £8.5m in upto 31st May 2015. Accounts show shares issued of £23m, of which £19m was put in to repay the loans UK Football Investments and other 3rd parties had put in. The other £4m was converted from loans put in by CC. He is still owed /assets4.5m

 

The £4m is probably 100% to do with FFP regulations as to how much the owner can put in and leave as debts

You are right on the season ticket funds (unused games portion) ...they are treated as unsecured creditors. But as for funds taken on account for future seasons/financial periods, if they can be identified as forward payments against specific items ie season ticket in specified names, they should be treated like solicitors/accountants/estate agents client funds and kept separate from other club funds/income/assets.

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Still a 1.6 m charge on hillsborough if my reading is correct on that?

Note 1 as well. The accountants seems to think we are not a going concern unless we secure investment from our owner every year.

Finally. MM paid back 18million (guessing this was the full amount he put in to the club over his period of time at the club) and something that I don't understand . Says MM owed Wednesday 4mil but transaction was at arms length?? Someone explain that one to me.

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Not really debt free if we owed CC £4.5m

 

Also note 11 refers to a loan of £1.2m drawn down on 22 Jan 15, repayable 21 January 2016

 

Might explain why season tickets went on sale early !

 

We have as we know repaid the external loans of £5.1m

 

Why would we owe Carlos Carvalhal £4.5m :ph34r:

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Still a 1.6 m charge on hillsborough if my reading is correct on that?

Note 1 as well. The accountants seems to think we are not a going concern unless we secure investment from our owner every year.

Finally. MM paid back 18million (guessing this was the full amount he put in to the club over his period of time at the club) and something that I don't understand . Says MM owed Wednesday 4mil but transaction was at arms length?? Someone explain that one to me.

MM's trust Fund in Channel Isles loaned the club a sum about equal to each years loss, as you say about £18m of accumulated loss showed in y/e accounts May 2014 as a loan. This loan was repaid by transferring this amount in company shares to the Trust Co and then DC bought those shares from the Trust, thereby releasing the stadium from it's First legal charge by the Trust. MM had then to cover losses to the point of the buyout by Chansiri, Feb 2015, which again done "at arms length" via the Trust, presumably to assist MM and his Trust with tax arrangements.

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Are the three year tickers 3 separate tickets paid up front or one ticket which covers a three year period?

 

Doesn't really matter for FFP accounting - all the season ticket monies recently received will be in deferred income next year

 

1 year tickets released in the 16/17 accounts

2 year tickets in the 16/17 and 17/18 accounts

3 year tickets in the 16/17, 17/18 and 18/19 accounts

 

There may be some alchemy that means it is not spread equally - discounted cash flows and all that jazz

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You are right on the season ticket funds (unused games portion) ...they are treated as unsecured creditors. But as for funds taken on account for future seasons/financial periods, if they can be identified as forward payments against specific items ie season ticket in specified names, they should be treated like solicitors/accountants/estate agents client funds and kept separate from other club funds/income/assets.

 

Really do not think it is ringfenced - it is not client money in the sense you are talking about

 

All I know is I had a conversation with an Exec box holder and won't compromise them, who were looking at protecting their position should they decide to pay 3 years upfront

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You are right on the season ticket funds (unused games portion) ...they are treated as unsecured creditors. But as for funds taken on account for future seasons/financial periods, if they can be identified as forward payments against specific items ie season ticket in specified names, they should be treated like solicitors/accountants/estate agents client funds and kept separate from other club funds/income/assets.

They won't be.

They have no legal obligation to do so (unlike a solicitor or IP)

Keeping them separate would give no cash flow advantage.

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Really do not think it is ringfenced - it is not client money in the sense you are talking about

 

All I know is I had a conversation with an Exec box holder and won't compromise them, who were looking at protecting their position should they decide to pay 3 years upfront

Not sure what you mean about protecting their position?

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They won't be.

They have no legal obligation to do so (unlike a solicitor or IP)

Keeping them separate would give no cash flow advantage.

As far as I am aware large ticket agencies operating in other areas of entertainment must keep their customer funds separated from their own company cashflow and bank accounts.  Because Wednesday are now  doing the same, by selling season tickets forward, there will be some accountancy requirement for them  to do the same. Authorities (taxman etc)must be able to identify who's funds are who.If this was not the case, how would anyone, including the directors themselves, be able to calculate if a company was insolvent or not, if it is depending on its customers advanced sales ?.Because Wednesday's financial Y/E is May, the cashflow advantage comes byway of the fact that all the advanced sales in a year would become available immediately in June, the start of a new financial year.Therefore assisting cashflow when income from matchdays has dried up over the summer.albeit other season ticket sales monies would be coming in.It just brings it forward a few months and obviously, they have the advantage of making sales, even if the teams form declines....god forbid.

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Presumably something that protected them should club go into Admin.

I.e. Debenture or PErsonal Guarantee from Chansiri or ring fencing of money.

really... there's someone who coughed up for an exec box for three years who thinks we are going into admin...sounds more like someone gutted that the club are moving forward at long last TBH any ideas?

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