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  • #1

    Club Debt

    For those that follow the financials the club accounts run to 31 May of each year.

    Yesterday, 31 May, Companies House were notified that extra shares had been created which were given full voting rights. You may remember that when we got in trouble with FFP the club was allowed to swap Director loans to shares, therefore reducing actual debt.

    On the last day of the 22/23 accounting period it would appear Director loans have again been swapped for shares to reduce club debts. Someone on the Board now has a greater share percentage than they did before, and others less of a share on the club.

    The details will be known when the full 22/23 accounts are released in Feb 2024. But thats my view on what happened yesterday.

    https://find-and-update.company-info...filing-history
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  • #2
    Originally posted by SheepRanger View Post
    For those that follow the financials the club accounts run to 31 May of each year.

    Yesterday, 31 May, Companies House were notified that extra shares had been created which were given full voting rights. You may remember that when we got in trouble with FFP the club was allowed to swap Director loans to shares, therefore reducing actual debt.

    On the last day of the 22/23 accounting period it would appear Director loans have again been swapped for shares to reduce club debts. Someone on the Board now has a greater share percentage than they did before, and others less of a share on the club.

    The details will be known when the full 22/23 accounts are released in Feb 2024. But thats my view on what happened yesterday.

    https://find-and-update.company-info...filing-history
    Thank you for de-mystifying this stuff. It generally hurts my head to read about club finances!

    Talking of finances....... I have just been paid the annual interest from my QPR Bond - therefore I'm very contented and feel that everything is OK with the club
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    • #3
      Originally posted by SheepRanger View Post
      For those that follow the financials the club accounts run to 31 May of each year.

      Yesterday, 31 May, Companies House were notified that extra shares had been created which were given full voting rights. You may remember that when we got in trouble with FFP the club was allowed to swap Director loans to shares, therefore reducing actual debt.

      On the last day of the 22/23 accounting period it would appear Director loans have again been swapped for shares to reduce club debts. Someone on the Board now has a greater share percentage than they did before, and others less of a share on the club.

      The details will be known when the full 22/23 accounts are released in Feb 2024. But thats my view on what happened yesterday.

      https://find-and-update.company-info...filing-history
      very interesting.
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      • #4
        The reason for this being done......I guess without doing it we would have breached the £39m debt allowed over a three year cycle.

        We should now be within FFP......well until next year at least.

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        • #5
          I thought the £39m was the maximum aggregate loss over a consecutive three year period.

          FFP sure is a strange thing for me to get my head around.

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          • #6
            Originally posted by Undecided View Post
            I thought the £39m was the maximum aggregate loss over a consecutive three year period.

            FFP sure is a strange thing for me to get my head around.

            You are correct.

            But if last season took us to a loss of £45m over three season, by writting off £7m of Director loans in echange for shares the actual rolling loss would be £38m. In this example the debt wrute off would avoid a breach of FFP.

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            • #7
              Oh. OK.

              A reduction in Balance Sheet creditors is a credit to profits.

              Comment

              • #8
                Thanks a lot for sharing the news, Sheep. It looks as if £13.1m has been converted from debt to equity.

                As far as I understand the FFP system, the club will not strengthen its FFP situation by turning debt into equity, save for any reduction in interest (however, I think director loans are interest free). Hence, the conversion from director debt to equity was not done with an eye on FFP as I see it. However, it is always good for us to know that the directors keep debt low, and always convert what they lend to the club to allow it to keep it running into equity.

                If I take my sun glasses on, I would like to read something positive into the fact that the amount is only £13.1m and not more. Could it be a signal that the cash provided by the owners for the last 12 months was just £13.1m and that the loss is therefore around that mark? If so, the club has managed to cut costs more aggressively during 22/23 than I have predicted. For those of you remembering my previous posts, I estimated a FFP loss of €15-18m in 22/23. Should it be less, we have a little easier situation. However, I am obviously aware that there do not need to be any exact 1:1 link every year between the size of the loss and the size of the debt conversion.

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                • #9
                  Some of the posts about FFP are a complete load of nonsense in my opinion.

                  In season 21/22 the accounts show we lost £24m of which £8.5m was for the training ground and £1.7m was for FFP fine, both of which do not count towards FFP.

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