Most liked posts in thread: Ownership Structure

Unfortunately City have failed as a youth development club. In January 2017 we signed Matt Penney a left back, on loan from Sheffield Wednesday. He played 1 game. Now he's in Wednesday's first team and is getting rave reviews. Had his loan period been handled differently he might have an excellent replacement for Meredith.

 

It isn't.

But after 10 months of decline, where I doubt this current team would make much of a mark in the Conference, it isn't surprising that frustration is being communicated.

One of the things for me, about supporting City over the last ten years or so has been the crowd. We've had big crowds compared to most of our peers. The Valley Parade is appreciative of effort and skill. We are a bit grumbly, but we are based in Yorkshire. However, that increase in volume with a well organised attack or when the team gets on top for a period, is one of the joys of watching our club.

Right now, it feels like that has gone. Expectations are so low, both in the stands and on the pitch.

 

And......go!!

 

sorry ricc, but hasn’t the £100k salary you claimed already been debunked or are you still sticking to that?

wasn’t there something shown that it was actually around £24k/year? which will probably be less than a few people that post on this board earn, or earned as a final salary before retiring.

out of interest, how much do you think is a fair salary for a football club secretary or football club accountant?

 

Thanks for the detailed analysis.
Looks like ER's & SR's relationship will start to get frayed soon enough, with no hope of further funding.

 

Thanks for this.

If you are correct, and there is an interest rate of around 12% attached to the funding which purchased the club, then that is a very hefty rate in the current economic climate. Do we know if the interest rate is compound or a fixed amount paid per annum?

How the club generates around £700,000 a year to cover this lord only knows on a revenue of less than £3m. These financials just do not add up.

I honestly feel less reassured about the future of the club after reading this and @Dennis contribution.

 

Reading between the lines this is my worry too. In terms of business the incomings of a league 1 football club are comparitively small. If you are looking for an immediate return on an investment of say between 5 and 6 £million then that money can only come from one place and thats the potential player budget. Orher various payments will also eat into this, if you ain’t selling players or getting the big cup ties the well will run dry pretty quickly. This isn’t going to end well is it?

 

When SR/ER took control ER said to the T&A that he believed in transparency and no hidden agendas. Now's the time to come clean and explain how the corporate and financial jigsaw broadly fits together, including approximately how much him and his family are earning from the club PA.

Without something like this then I expect the rumours and numbers floating around will become concrete in some fans minds and likely serve to further alienate some of the support. It's not that unusual these days for CEO's and the like to have their salaries publicised, especially when the confidence of their consumers/customers is an important part of the business.

 

It's horrible to think of that situation but I'd have to make that decision too. It's not the League 2 season that would put me off renewing it's the people in charge.

 

This squad are strangers, the club I no longer recognise, fans groups seem to have been taken in by Edin...somehow, we are basically sleep walking into the abiss and no one seems to care. Are we that apathic to the club? If and when we go down, I can’t see me going week in week out. I have been a season ticket holder since 1984, go with my brother & lad. I have a 25 yr ticket so will renewal 8n hope rather than necessity. My lad is 16, prefers away games and wants to get a weekend job, but has turned down jobs due to football. I can’t seem to justify why we go now he is older. It was easier then he was little.. More importantly for the city I have no reason to visit apart from driving through to get to work. All destroyed by one man’s ego...unless we start to make some noise folks.

 

In 2018 we are the 71st performing club out of 72 in the EFL. Only Reading are worse but they've played 1 less game. We've had 4 (5 if you count Abbott as caretaker) managers and 30+ players.....you can't make it up, for owners who wanted stability. I know football...

 

Wow. Sorry, I must have forgot all the great atmosphere we have created over the last few years at home - oh sorry until ER decided on his model and crowds fell and results were shite....

I think teams said that a while ago before PP came in and got the ground rocking because he had players who actually busted a gut for the cause and the fans loved the players...but seeing somebody like Josh Wright swanning around as if he was Beckham without actually influencing the game...

To be honest I think the crowds have been pretty good given the crap we have had in 2018 - you do realise that we are actually at the bottom of the PL & EFL in 2018? But I'm sure you know better as always...

 

Call it a hunch but i'm guessing you're not one of the owners.

 

you show me your proof she's on 24k a year and i'll show you mine that it's significantly more.

 

funny how a forum post has now become 'credible and independent" when it suits, where as I was 'making it up'.

 

Not really. I don’t think there is anything inherently dodgy or even unusual about the way this is all structured. The issue really is that we all want city to be successful and potential management fees or interest aren’t going to help with that aim.

 

Not defending anything but wouldn’t describe it as a shell company, it is a normal holding / financing company. The intention would be that BCAFC would become profitable and some profits would flow to this company in the form of management fees or possibly dividends at a later date. It would then pay tax on those profits. This clearly can’t happen unless BCAFC becomes successful. This is no crazy offshore financing structure which bends the rules, it all seems pretty plain vanilla to me. Certainly don’t want people to get the impression there is any tax evasion going on here, I haven’t seen anything to suggest that would be the case.

 

The days of small academy-based teams like Crewe surviving in the Championship are long gone.

 

I did consider that, however, cash in the German Holdco only increased by 100k in the year whereas the loan amount grew by 700k. There has been no equity injection into either of the UK companies as that would show in the UK accounts. There is also no loan to the UK companies as that would show in both the UK and German accounts and I can see no evidence of that. I agree that there is insufficient information to be 100% certain about all of this, however, I am still reasonably certain based on my research that what I have said is materially accurate.

 

They are all June year ends so I don’t think there are any timing issues, we are obviuosly looking at out of date information though so things could have changed, however, if there were any equity injections into the UK companies they would appear on Companies House fairly soon after the event and there have been none.

No problem at all, I have tried to highlight where there is a fact vs where I have had to make assumptions but it is quite tricky with the limited information available. The main thing I am uncertain of is the interest rate on that loan, there is a possibility it is less than 12% but that is my best guess. There is a possibility some further loan advance went into the German co but I think it is unlikely to be a significant amount.