Championship facing 'financial armageddon' after TEN clubs placed under transfer embargo last month..(Rams/Owls/Blues/...)[Mail online]

Soutra

Well-known member
I think some of you don't understand what's happened here.

Companies' accounts have to be audited, and signed off by the auditors. Auditors are always external companies. Auditors don't really check the numbers, they check that the systems that are in place at the company are robust, that nothing is omitted, and that the way in which complex transactions are treated are in line with company legislation. Different companies may have different ways of (for example) amortizing assets. There is no single right way, there are many right ways as well as (obviously) many wrong ways.

When the audit is complete - and it may have to be held on the premises of the company to count stock etc - then the auditors can sign off the accounts and submit them to Companies House. Normally companies have nine months to submit accounts from the end of their financial year. Because of the difficulties caused by Covid, auditors have been struggling to complete their work on time. The government extended the deadline by three months to take account of this. So the deadline is now 12 months after the end of the financial year. Some football clubs have not submitted their accounts after nine months, but the EFL has decided to act as though they should have done. Some of the clubs have submitted unaudited accounts (ie not yet signed off), but that doesn't seem to be enough.

The EFL is on thin ice here, because these football clubs are still within the law, but not apparently within the remit of the rules of the EFL. When the rules of an industry body diverge from company law, there's only ever one winner, and it's not the industry body. The EFL is probably freaking out because they suspect lots of football clubs are trying to pull fast ones. It's the EFL's fault though, because if they'd imposed and enforced fit and proper ownership rules, there's be no need to suspect clubs of being devious.
 

rob_fmttm

Administrator
I was listening to a fan from a football trust, involved with running a league club and he was expressing his concerns that lots of EFL clubs are taking out all sorts of loans and so storing up massive problems for the future.
 

indeedido

Well-known member
I was listening to a fan from a football trust, involved with running a league club and he was expressing his concerns that lots of EFL clubs are taking out all sorts of loans and so storing up massive problems for the future.
And that is the downside of a Club run by a Trust with ordinary supporters, they have to raise funding through external providers. They will be desperately taking funding wherever they can get it, and the providers have them by the balls able to close them at will.
Clubs with owners who can provide the funding to cover/guarantee losses made by loading them across their other businesses can protect their club from external loans/funding.

Middlesbrough had £85m Group undertakings at June 2019 and if Gibson wouldn't extend further, then the £31m we lost last season would not be possible to have been raised externally and that would have been that.
Stoke City might be making huge losses and have real problems with their contracts, but they have Bet365 behind them. FFP is their only real concern. Denise Coates personally earned in one year what Boro owe Gibson O'Neill to put things into perspective. This year her earnings will dwarf that given the performance of Bet365.

The EFL have been AWOL for years re FFP and the PL simply don't give a fcuk what a Club has done to get promoted. See Exhibit A: Aston Villa, though there are others.

We are blessed and cursed with Gibson.
Blessed in that he has Bulkhaul which can cover Middlesbrough's losses across the Group Accounts and avoid external funding and also that he clearly does love the Club.
Cursed in that he has made some terrible decisions, predominantly since 2016 that have created this financial basket case that nobody else can or will take off his hands.
I've been saying we are stuck with each for the last couple of years.
Only promotion and a revenue transformation properly managed this time, can help us, given nobody in their right mind will take the club on just now and Gibson (understandably) will not just give his 100% equity away AND write off the £116m owed to Gibson O'Neill.
 

Soutra

Well-known member
given nobody in their right mind will take the club on just now and Gibson (understandably) will not just give his 100% equity away AND write off the £116m owed to Gibson O'Neill.
He'll have no option to write off the debt fairly soon. HMRC will expect him to collect it or write it off at some point in the not too distant future.
 

festa5

Well-known member
No idea when but I will tell you this there won’t be any points docked at all. If it’s anything then it’d be likely fines.

Are you actually 5 years old or what Roofie? You’re embarrassing yourself.

If I was a "Wayne Rooney's 32 Red Derby County" fan I'd be directing my anger at your owner(s). They've tried every trick in the book possible to try and cheat (in my opinion) their way to promotion and it's backfired badly. I've no sympathy.

As fans there's very little influence we can have over the running of our clubs, but at least recognise where the blame lies for your struggles.
 

BoroMart

Well-known member
No one who kicks a ball should get 30 grand a week. That's a free market for you though.
30k a week is pittance compared to some jobs. I mean running an online gambling business can earn you almost 10mill a week if you do it well.....an online gambling business, that takes money of the vulnerable, let that sink in, and then remind me how obscene it is kicking a ball for 10 years for 30k.
 

BoroMart

Well-known member
Denise Coates personally earned in one year what Boro owe Gibson O'Neill to put things into perspective. This year her earnings will dwarf that given the performance of Bet365.
she earned 461million last year apparently, absolutely obscene and disgusting considering it's money taken often from people who can't afford it or are addicts.
 

Laughing

Well-known member
30k a week is pittance compared to some jobs. I mean running an online gambling business can earn you almost 10mill a week if you do it well.....an online gambling business, that takes money of the vulnerable, let that sink in, and then remind me how obscene it is kicking a ball for 10 years for 30k.
I wasn't equating it with anything else BM. Because income from privately owned companies is obscene doesn't make a footballers salary any less obscene.
 

BoroMart

Well-known member
I wasn't equating it with anything else BM. Because income from privately owned companies is obscene doesn't make a footballers salary any less obscene.
my point, I guess is that footballers are a soft target. Despite most footballers earning nowhere near 30k a a week and most having only about 8 years on their higher wages. There are probably 100+ members of this board who earn more than your average U23 footballer and at 30 their wages start to plummet.

Personally, I don't think anyone can justify that they have put in enough effort in a year to earn over a couple of mill, other people will have lower or higher watermarks, I guess.
 

r00fie1

Well-known member
No matter how you dress up a turkey - its a turkey.
The difference between the turkey and the EFL is that it is an Ostrich with its head wedged so far up its own arz its lost sight of its purpose and reason for being.

Financial code-words used to disguise poor management and deliberate over-spending dont hide the rusting hulk which hides beneath the "it`l all be alright tomorrow" mentality.

I cant wait for the whole deck of cards to come crashing down.
Thats what is required.
 

BoroMart

Well-known member
No matter how you dress up a turkey - its a turkey.
The difference between the turkey and the EFL is that it is an Ostrich with its head wedged so far up its own arz its lost sight of its purpose and reason for being.

Financial code-words used to disguise poor management and deliberate over-spending dont hide the rusting hulk which hides beneath the "it`l all be alright tomorrow" mentality.

I cant wait for the whole deck of cards to come crashing down.
Thats what is required.
We've been waiting for 30 years for it to come crashing down. It might for a few clubs at last, but the majority will survive, belt tighten for a while, then return to reckless over spending
 

Laughing

Well-known member
my point, I guess is that footballers are a soft target. Despite most footballers earning nowhere near 30k a a week and most having only about 8 years on their higher wages. There are probably 100+ members of this board who earn more than your average U23 footballer and at 30 their wages start to plummet.

Personally, I don't think anyone can justify that they have put in enough effort in a year to earn over a couple of mill, other people will have lower or higher watermarks, I guess.
You're right, footballers are a soft target, that I would agree on. I usually never even think about their salaries, good for them. My response was more to Alvez who was referring to..... Can't remember who, and he wasn't worth 30 grand a week. None of them are.

I am not even sure I agree with a totally free market, it doesn't really work for the betterment of society, but that is way off roofies topic.
 

newyddion

Well-known member
I just hope that the EFL do not allow these clubs to go unpunished, because that in turn punishes the teams , like us, that have played by the book and planned properly during this pandemic.

I mean Cardiff went out and outbid us for Kieffer Moore and are above us in the table, knowing that if this pandemic carried on (as was likely) they could be in financial trouble.

Stoke too, signed Fox, Chester, Fletcher and Mikel they must be on huge wages.
Kieffer Moore seems to have a different club every season. Maybe next season he will fancy the boro after all?
 
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