Tom8558 Posted 12 August, 2011 Share Posted 12 August, 2011 With transfers like AOC, are we still in debt? Link to comment Share on other sites More sharing options...
Thedelldays Posted 12 August, 2011 Share Posted 12 August, 2011 who knows... Link to comment Share on other sites More sharing options...
Dr Who? Posted 12 August, 2011 Share Posted 12 August, 2011 We have not been in debt since the takeover!! Link to comment Share on other sites More sharing options...
Turkish Posted 12 August, 2011 Share Posted 12 August, 2011 We are Southampton, we'll spend what we want. Link to comment Share on other sites More sharing options...
cellone Posted 12 August, 2011 Share Posted 12 August, 2011 We need to be a profit/ pay the wages type business. It giives us more than we lose Link to comment Share on other sites More sharing options...
SaintBobby Posted 12 August, 2011 Share Posted 12 August, 2011 I think we run at an operating loss, but it's not obvious to me whether or how much this matters. Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 12 August, 2011 Share Posted 12 August, 2011 15m for AOC Link to comment Share on other sites More sharing options...
Draino76 Posted 12 August, 2011 Share Posted 12 August, 2011 In my new job I encourage pension funds to take on new debt. I enjoy it. Link to comment Share on other sites More sharing options...
BadgerBadger Posted 12 August, 2011 Share Posted 12 August, 2011 In my new job I encourage pension funds to take on new debt. I enjoy it. I've got some debt if they want it, will do them a good deal Link to comment Share on other sites More sharing options...
Draino76 Posted 12 August, 2011 Share Posted 12 August, 2011 I've got some debt if they want it, will do them a good deal Yield? Link to comment Share on other sites More sharing options...
Gambol2K9 Posted 13 August, 2011 Share Posted 13 August, 2011 Saints do run at quite a large operating loss looking at last years accounts. Lets put it this way, if the funding was pulled 2moro the club would be ****ed. It does worry me that our wage bill isnt covered by our income. Saying that, i trust that NC knows what he's doing and has the clubs best interests at heart. Link to comment Share on other sites More sharing options...
STEVEADAMS Posted 13 August, 2011 Share Posted 13 August, 2011 How many times do people need to ask this, it has been repeatedly stated by NC that we are debt free. Link to comment Share on other sites More sharing options...
Barry the Badger Posted 13 August, 2011 Share Posted 13 August, 2011 How many times do people need to ask this, it has been repeatedly stated by NC that we are debt free. It's pretty reasonable for people to ask. We've spent a lot of money. Link to comment Share on other sites More sharing options...
John Smith Posted 13 August, 2011 Share Posted 13 August, 2011 With transfers like AOC, are we still in debt? dunno, you tell us. What do you know that the rest of us don't? As for last year,nobody really knows as the debt can be written off. The operating profit is not too bad as the main debt is in the purchase not in the paying of the players. We also know that under lowe, we needed about 15000 every home game to break even and this was with the interest payment on the stadium. So, this leaves us in exactly the same position as we were before. Why do we need to ask this same question again and again, without any need to do so? Have you heard that we are b***ered? Nope, thought not. The accounts do not say this. In fact, if NC and the cash left tomorrow, I'm guessing sonme wealthy owner will pick us up for nothing, and we'd be better off than we are today. WOW! So, in total response to your question, with the AOC money in the bank, we are better off than we were and we were pretty well off anyway and in order to buy us, someone has to repay the debt in the purchase, so no, no debt. Move on. Link to comment Share on other sites More sharing options...
John Smith Posted 13 August, 2011 Share Posted 13 August, 2011 P.S. How, as a registered user, do you start a thread? Have the rules changed? Link to comment Share on other sites More sharing options...
sammysaint Posted 13 August, 2011 Share Posted 13 August, 2011 I think some fans are assumming because were not spending big despite MLs family having billions still is making some people think the family arent helping the club no more, but i think there letting NC run the club and will help out when needed, allowing him to make the club make money and run itself which i think lets be honest hes doing a good job of so far, 12 mill upfront for a player with only league one experience and we have spent half of that on transfers so far with decent players proven at this level. i think NC is going to make the club so much profit and income that were be one of the clubs that can do well with the new rules coming in place about fair play. Link to comment Share on other sites More sharing options...
sussexsaint Posted 13 August, 2011 Share Posted 13 August, 2011 Who are 'we' in debt to, if all our bills are paid? Link to comment Share on other sites More sharing options...
trousers Posted 13 August, 2011 Share Posted 13 August, 2011 P.S. How, as a registered user, do you start a thread? Have the rules changed? Yes, at least a year ago. Link to comment Share on other sites More sharing options...
alpine_saint Posted 13 August, 2011 Share Posted 13 August, 2011 How many times do people need to ask this, it has been repeatedly stated by NC that we are debt free. Yes, I am f**king sick of reading this thread title. Link to comment Share on other sites More sharing options...
farawaysaint Posted 13 August, 2011 Share Posted 13 August, 2011 Yes, I believe we are in debt. I also believe our benefactors are financing the debt and not the club. Our income certainly isn't supporting our spending at any rate but as long as the owners makle up the shortfall that's perfectly fine. Link to comment Share on other sites More sharing options...
Dalek2003 Posted 13 August, 2011 Share Posted 13 August, 2011 We will always be in debt to Marcus Liebherr for saving our club and laying the foundations for our renaissance. We will become self financing one day, but whether we will ever pay off the generosity to the Liebherr family remains to be seen. We should always try and uphold the values of Marcus Liebherr on and off the field. On the field, by gaining a reputation for fair and skilful football and sporting behaviour. Off the field, the fans of SFC for being known as passionate but sporting. This would be a fine legacy. Link to comment Share on other sites More sharing options...
Gemmel Posted 13 August, 2011 Share Posted 13 August, 2011 How many times do people need to ask this, it has been repeatedly stated by NC that we are debt free. We are in debt to the loans that ML / Estate of ML have put into the club (24 million off the top of my head). To say we are debt free is plain wrong. Just read the company accounts. However this is nothing more than standard business practice and the most efficient way of injecting funds into a business. Link to comment Share on other sites More sharing options...
bender Posted 13 August, 2011 Share Posted 13 August, 2011 It's pretty obvious the owners are spending now to benefit later. Once we are in the Prem, they will sell the club for more than the money they bought it for + current spending. But as long as were in the prem, who cares. Just hope they sell on to a good owner. Link to comment Share on other sites More sharing options...
dronskisaint Posted 13 August, 2011 Share Posted 13 August, 2011 We are in debt to the loans that ML / Estate of ML have put into the club (24 million off the top of my head). To say we are debt free is plain wrong. Just read the company accounts. However this is nothing more than standard business practice and the most efficient way of injecting funds into a business. This is spot on. Think of it as buying a house with a mortgage...you improve the house as you can afford it and increase it's value, often and ideally over and above what you spend doing so. This increased value is your equity and therefore whoever has loaned the money has increasing collateral against that money. Then one year the highways department build a by-pass and your property is now in a quieter and more desirable location...think of that as promotion... and increase the value of your property still further thus creating more collateral to be valued against. To equate that to Southampton FC....they bought at a good price, increased the investment in the playing squad and support and supply line and we went up. A Championship club is worth more than a L1 club so the equity is increased. With greater success (and for us the bonus of attractive football) the gates increase - yes the prices go up too - you can't divorce this from the extra you are getting and then you invest still further in the hope of getting to the promised land of the Premer League where a certain level of income is guaranteed. So, provided your business plan is sound (it appears to be so), the money that you borrow is acquired on sensible repayment term (it appears to be so), it is spent wisely on the right players and infrastructure (it appears to be so -thus far) then you have a sustainable debt building to a goal. ML & NC defined that goal ideally as Champions League football where the rewards are still higher...keep watching. I hope this adds to the explanations above. Whether the club is sold on at a massive profit once this is achieved is yet to be seen. For now I'm enjoying the ride knowing that, unlike our neighbours to the East, that we are progressing in a structured and sustainable way. Link to comment Share on other sites More sharing options...
dune Posted 13 August, 2011 Share Posted 13 August, 2011 So, provided your business plan is sound (it appears to be so), the money that you borrow is acquired on sensible repayment term (it appears to be so), it is spent wisely on the right players and infrastructure (it appears to be so -thus far) then you have a sustainable debt building to a goal. And the fact all the money came out of a swiss biscuit tin helped. Link to comment Share on other sites More sharing options...
Gambol2K9 Posted 13 August, 2011 Share Posted 13 August, 2011 How many times do people need to ask this, it has been repeatedly stated by NC that we are debt free. Get a copy of the accounts from companies house, will answer all your questions Link to comment Share on other sites More sharing options...
Matthew Le God Posted 13 August, 2011 Share Posted 13 August, 2011 (edited) Get a copy of the accounts from companies house, will answer all your questions It doesn't at all. The accounts don't reveal when or even if the £20.4m from Liebherr needs to be paid back by. I would guess it probably doesn't and will be at some point turned into equity. Edited 13 August, 2011 by Matthew Le God Link to comment Share on other sites More sharing options...
benjii Posted 13 August, 2011 Share Posted 13 August, 2011 It doesn't at all. The accounts don't reveal when or even if the £20.4m from Liebherr needs to be paid back. I would guess it probably doesn't and is/or will be turned into equity. I think it says the debt is not repayable in the next five years. Interest payments should also show in the accounts so if there is none, then it's pretty safe to assume the debt is "soft" and was merely a tax efficient structure to inject capital. Link to comment Share on other sites More sharing options...
farawaysaint Posted 13 August, 2011 Share Posted 13 August, 2011 It doesn't at all. The accounts don't reveal when or even if the £20.4m from Liebherr needs to be paid back. I would guess it probably doesn't and is/or will be turned into equity. It would not be a liability if there is no obligation to repay as IFRS requires a present obligation for it to be presented as such otherwise it would be an equity contribution. Whether it gets written off in the future is another matter entirely. Link to comment Share on other sites More sharing options...
saintjay77 Posted 13 August, 2011 Share Posted 13 August, 2011 I heard that ML loaned the club the funds needed to buy it and clear debts, I'm guessing enough was loaned to the club to finance a push to get promoted back to the Prem unless ML's family have continued to finance the loans needed. What we will never know is if ML ever intended to expect payment on the loan or if his plan was to write it off at some point. We are not in debt with any proper finance company or mortgage though and while under the Lebheir's ownership I doubt we ever will be. I guess the next published accounts will tell us more though? Link to comment Share on other sites More sharing options...
Barry the Badger Posted 13 August, 2011 Share Posted 13 August, 2011 Yes, I am f**king sick of reading this thread title. So are people not allowed to question the finances of the club? He was only ****ing asking. we all laughed at Pompey fans who refused to question what was going on, preferring to blindly accept promises on face value. Now personally, I trust the Liebherrs and Cortese, but given what we've previously been through it is perfectly natural and healthy for fans to want to know more about the clubs finances. Link to comment Share on other sites More sharing options...
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