Steve Gibson “pumps in £1m a month to keep the club afloat”
- Thread starter InglebyUTB
- Start date
DCI_Gene_Hunt
Well-known member
Burnley were taken over by Americans promising the world and now find themselves with a massive debt a la Glazer after being relatively financially secure.
Not sure where that fits into the discussion but just making the observation!
Last edited:
indeedido
Well-known member
Bulkhaul 2021 reported £14.8m Tax on £44.7m Profit Before Tax in the year to June 2021 so 33.2%, which on the face of it is way higher than Corporation Tax. MFC reported a tax credit of £3.6m on a PBT LOSS of £30.8m.
Bulkhaul 2020 reported £10.1m Tax on £39.8m PBT in the previous year to June 2020, so 25.3% in 2020. MFC reported a credit for £5.1m despite making a PBT LOSS of £35.6m.
Bulkhaul 2019 £8.3m Tax reported on £44.4m PBT, while MFC reported Tax of £155k on a Profit Before Tax of £2.0m
In the PL season to 2017, Bulkhaul reported £4.3m Tax on £29.2m PBT. MFC made £6.9m PBT and reported a tax credit of £4.6m. The GON Group reported just £0.5m Tax paid on £34.3m PBT.
Tax and Group Tax is far, far more complicated than those bald numbers and I am simply nowhere near good enough and don't have all the info to state facts re Tax across Gibson O'Neill. So I won't even try.
But, it strikes me that,
MFC report tax credits every year they make a PBT loss, and sometimes even when they have made profit themselves, as in 2017. This can only broadly only happen if the losses of the Football Club are offset against profits made by Bulkhaul, within the Group.
As I've posted before, Tax is played very advantageously for MFC and for the Group overall, but Bulkhaul and the Group would obviously be much stronger without the Club.
The Club obviously still actually loses all that money for the Group, but they legally play Tax to optimise the position. It is what any Group is partly there to do; portfolio management.
Bulkhaul has a net Shareholder Value of £247m, in part due to £147m within Debtors, in Assets, being the figure loaned/owed by Undertakings of Group. MFC has Undertakings to Group of £121m. Bulkhaul effectively loan MFC £121m across the Group GON.
Converting this MFC debt to equity, would make MFC whole, but collapse that Bulkhaul value by £121m, or almost in half.
GON did capitalise the c£40m Undertaking/loan that Rockliffe had from Group to cover their cumulative losses in 2020, making GON have positive nett value, but completely at odds with its trading performance since opening.
Gibson O'Neill certainly enables MFC to continue to operate, but has also ultimately been responsible for the position it finds itself in - and impact on the whole Group.