Club for sale etc.

That's a fair question. In simplistic terms it's how much the shareholders currently have invested in the company over its life. It reflects how much equity was originally invested, how much profit or loss has been made since then and how much equity has been withdrawn from the business by the shareholders as dividends

In our case, the original equity was £3mill. That's what it was when ML & JR sold the business and reflected what they had previously invested in the company. When they sold the business, there had already been an overall loss of £1.9mill under their collective ownership until they sold if to R&R. I'm not aware of any dividends having been made. When R&R bought the club, they inherited that position so at that point, the value of the club's shareholder equity amounted to £1.1m. Since then the club has continued to accumulate losses (there was one year when a profit was made from the McBurnie deal) to such a level that it now exceeds all of the equity which has been injected into the club. Hence shareholder funds are now negative, ie -£1.1m.

Its importance to us is that it demonstrates that to date, the club has been loss making. In itself that hasn't been a problem since some of those losses were the result of Rahic and Rupp has loaned the club cash to make up for that. And we do appear now to be on a better financial footing with our 'sustainabilty' ethos. But we are hardly gushing with cash and who knows whether we can get out of this division on the back of the club simply ticking over.

 

If your business had broken even then in simple terms sales would have equalled the cost of producing the goods and the costs of running the business. In that case, I doubt very much that you would have generated any surplus cash to have repaid your business loan. You would have broken even and still owed the bank £100k. If you are simply breaking even, there is no residual cash to pay off your loan.

I doubt very much that you and your wife runs your household on a P&L account or use double entry bookkeeping. I doubt many households do! We run them like a giant cash book looking at how much income is coming in from salaries, pensions, investments etc and how much is going out in bills, holidays, mortgages and so on. We take out loans for big purposes such as houses and cars and factor the repayments on them into our outgoings. In a company, they still have these considerations but it is done separately from the P&L. To simplify it enormously, it's the profit from the business' activities whether that's making widgets or selling future stars which generates the cash to repay the bank loans etc. As I said in another post 'Sales is vanity, profit is sanity but cash is king'.

 

75 mill according to this


https://www.attractionsource.com/forum/viewtopic.php?t=19849

 

At double the current lease taken out of the players budget... Epic