Bournemouth have posted a substantial loss for 2013-14
http://t.co/x5KGsWBW3c http://t.co/iF9owTWeBB
http://t.co/x5KGsWBW3c http://t.co/iF9owTWeBB
Bournemouth Loss (1 Viewer)
- Thread starter RFC
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SkyBlue_Bear83
Well-Known Member
They will reap the rewards though next year, not the best way to go but they won't care now. If you can afford to lose it.
To be fair they quite probably lost more than that this year, it might well total something like 50mill loses to go from league 1 to the premiership for them. Quite a gamble if it fails, but it didn't.
Don't forget the parachutes
chiefdave
Well-Known Member
That's exactly the problem isn't it. How many teams in the Championship will take that punt? Far more than can be promoted so you're going to have a lot of teams posting big losses year on year. How many failed attempts before its a similar level of debt we had in the championship that we couldn't service.
At some point the bubble is going to burst. There's no way you can have so many companies, which is what football clubs are in reality, posting huge losses year on year and staying in business.
NorthernWisdom
Well-Known Member
On the one hand they have a benefactor who seemingly buys into building a club.
I'd be mildly worried by the fact some loans are charged to his company though, and also note he charges interest too. People don't mind that when the team wins, but as soon as they lose...
Will be interesting to see how it pans out. The modern way seems to be loan loads of cash then convert to equity (see Coates at Stoke) if you're feeling generous. If not... just loan the cash!
I'd be mildly worried by the fact some loans are charged to his company though, and also note he charges interest too. People don't mind that when the team wins, but as soon as they lose...
Will be interesting to see how it pans out. The modern way seems to be loan loads of cash then convert to equity (see Coates at Stoke) if you're feeling generous. If not... just loan the cash!
SkyBlue_Bear83
Well-Known Member
Its the classic dilemma with gambling, if you can afford to lose it then thats fine. If you can't afford to lose it, then that is when it becomes reckless.
oldskyblue58
CCFC Finance Director
they have got very lucky.
Strangely AFC Bournemouth Ltd started in 2008 just like SBS&L. Gone in opposite directions from there on.
most of their accumulated debt and losses was accrued in 2013 and 2014 (25m out of total of 30m). They have a low turnover (for the championship £10m and even was low in L1 at 5.1m), retained assets (players and other fixed assets)and a wealthy backer with a clear plan. They will have made further losses this year I would think but with the success they have had turnover will have increased considerably I would guess. Will wages have greatly increased again maybe with the win bonuses. For a team which is reality small Bournemouth (and I mean no disrespect in that at all) they appear to have done very well and taken a punt at the right time. Can it continue and how do they repay the owner - well there is the rub isn't it. The increased rewards of the premiership and the parachute payments that may follow failure will certainly soften the blow.
Success can be achieved from little it seems ...... including low income but there are dangers in how it is done
Strangely AFC Bournemouth Ltd started in 2008 just like SBS&L. Gone in opposite directions from there on.
most of their accumulated debt and losses was accrued in 2013 and 2014 (25m out of total of 30m). They have a low turnover (for the championship £10m and even was low in L1 at 5.1m), retained assets (players and other fixed assets)and a wealthy backer with a clear plan. They will have made further losses this year I would think but with the success they have had turnover will have increased considerably I would guess. Will wages have greatly increased again maybe with the win bonuses. For a team which is reality small Bournemouth (and I mean no disrespect in that at all) they appear to have done very well and taken a punt at the right time. Can it continue and how do they repay the owner - well there is the rub isn't it. The increased rewards of the premiership and the parachute payments that may follow failure will certainly soften the blow.
Success can be achieved from little it seems ...... including low income but there are dangers in how it is done
NorthernWisdom
Well-Known Member
As ever, it's how the financier reacts to failure that counts.
And failure is inevitable in sport... at some stage. Kind of disappointed Man Utd have made the Champions' League in all likelihood this season, as it would have been interesting to see how the Glazers reacted if lack of qualification for that was more than a one-off.
skybluebeduff
Well-Known Member
Seriously WTF has this got to do with CCFC?
Why drop this and then run RFC you cowardly deluded man!
Why drop this and then run RFC you cowardly deluded man!
skybluetony176
Well-Known Member
Nonleagueherewecome
Well-Known Member
Oh yeah, I'd hate to be Bournemouth right now. Tosser :facepalm:
Has the OP never heard of "speculate to accumulate"?
Actually, I'm the tosser for taking anything that he says serious enough to reply to it...
Has the OP never heard of "speculate to accumulate"?
Actually, I'm the tosser for taking anything that he says serious enough to reply to it...
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Nonleagueherewecome
Well-Known Member
That SISU are better than their owners I expect...
stupot07
Well-Known Member
Not entirely though, they sold grabben to Norwich for more than they paid for Wilson, so that would have covered wilsons transfer fee.
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Astute
Well-Known Member
Not entirely though, they sold grabben to Norwich for more than they paid for Wilson, so that would have covered wilsons transfer fee.
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But if they hadn't bought Wilson they would have been 2.3m better off......but not champions or even promoted the odds are.
NorthernWisdom
Well-Known Member
tbf, take the post at face value and it raises some interesting issues.
After all, not so many years ago we could have been pointing at Portsmouth and saying they'd speculated to accumulate...
How it pans out, we wait and see. If he's the benevolant chap he's made out to be, all will be OK. The very fact clubs grow and succeed only by loans from people (and companies) that are then charged interest should be of concern however. It makes the club, and its assets, beholden to the owner in the case of failure... and a club really should expect failure at some stage. An owner's role, really, shouldn't be to protect an investment, but to build a club as much out of ego or social conscience or a repressed desire to play Football Manager as far as I'm concerned.
Yet none/few of them are. Instead a dodgy offside decision can not only mean the difference between success and failure, promotion and relegation... but it can shape a whole club's future.
Bournemouth is a success story, something to be celebrated. Small clubs *should* get promotion and show there's hope for every team from the bottom down. Given where they were not so long ago... it's amazing!
But maybe the default when it comes to gambles shouldn't be how clubs are set up nowadays. Maybe the gambles should be couched in ways that are more tolerant of failure if failure comes.
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stupot07
Well-Known Member
True. It's still a massive gamble, and for every Bournemouth you have a Coventry City.
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Brighton Sky Blue
Well-Known Member
True. It's still a massive gamble, and for every Bournemouth you have a Coventry City.
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And a Portsmouth. But since the PL rewards finishing bottom with a prize of over £100m and gives parachute payments of over £60m the risks are getting lower now, all you have to do is get your foot in the door.
NorthernWisdom
Well-Known Member
Depends what you do once up there.
Do an Oyston and all is fine (for the owner!). Try and chase even more...
tisza
Well-Known Member
Surely the main difference between us and Bournemouth (and most of the championship clubs) is that they tend to have single individual "benefactors" rather than the set-up we have.
SISU can't just dip their hands into their pockets as it's not their money as such - rather they have to answer to a load of investors who entrusted them with their money. The policy of breaking-even and self-financing is probably one of necessity rather than choice.
After the initial debt pay-offs of around 28 million when they bought the club the money put in has been more to cover losses rather than to make an aggressive move into taking the club upwards.
SISU can't just dip their hands into their pockets as it's not their money as such - rather they have to answer to a load of investors who entrusted them with their money. The policy of breaking-even and self-financing is probably one of necessity rather than choice.
After the initial debt pay-offs of around 28 million when they bought the club the money put in has been more to cover losses rather than to make an aggressive move into taking the club upwards.
Esoterica
Well-Known Member
Where's your Monkey avatar? We should have a generic GMKer avatar in case the SBTers start to think they've suddenly developed a bunch of people who talk sense. We'd also not have to keep looking at Johnny Vegas' moobs!
Sky Blue Harry H
Well-Known Member
Except this time 'we' have got (literally) nothing to lose
Enjoyed your post, we've previously fell into the trap but I unfortunately haven't been lucky, YET!
NorthernWisdom
Well-Known Member
Hobo
Well-Known Member
Yes it makes more sense to pass on the option to buy your stadium, increase your debt by about 40m, invest in a bunch of cast offs, half your fanbase and go from a Championship side to relegation candidates in Lge 1.
covboy1987
Well-Known Member
They receive a windfall of 120 million for reaching the premiership and the owner has loaned the club £25 million - not a bad return- not forgetting many of there players have gone up in value for instance Callum Wilson purchased for a reported 3 million maybe worth now 15 - 20 million - basically the upturn in value of some of there players completely writes the 25 million loan and change
Esoterica
Well-Known Member
Then you've got to add in this year's debt, the work that needs doing on the stadium just to make it comply with Prem rules, any investment they make in players, top flight salary increases, the interest on that loan etc and if the owner wants to cash in on that windfall and siphon all that profit away then where has it really got them if that windfall isn't being used for the club? It's not as simple as deducting 25 mill from 120 mill and saying that's 'not a bad return'
So you are saying that their benefactor made a bad investment.....Really?
stupot07
Well-Known Member
Very true.
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