with gate numbers, lack of merchandising etc balanced against wages,cobblers rent etc how long before it becomes non viable financially,or ist already?
Or is there any truth in the 'CCFC being used as a debt pit' theory???
Or is there any truth in the 'CCFC being used as a debt pit' theory???
Hope not, but that's my worry.
Employ 8 different directors pay them 100k put through the accounts they are on £200k for say 3 years even though they have left , not saying that's what happened here mind ?Could you please explain that theory for me ... slowly and in layman terms, so I can understand how it's done and how sisu are making money on it?
Could you please explain that theory for me ... slowly and in layman terms, so I can understand how it's done and how sisu are making money on it?
Could you please explain that theory for me ... slowly and in layman terms, so I can understand how it's doneOh and before anyone says FFP - there are ways around the wage cap limit to offset lack of income
I don't think the lack of income is too much of a concern for sisu. Their exit require they can sell up to regain their investments. They will either build a stadium or acquire ACL - and as ACL are protected against sisu by CCc, Higgs and many ccfc fans, sisu will have to build a stadium of their own.
But if they can secure a good piece of land in a good location there may be more profit for them long term building than taking over ACL.
Oh and before anyone says FFP - there are ways around the wage cap limit to offset lack of income.
Employ 8 different directors pay them 100k put through the accounts they are on £200k for say 3 years even though they have left , not saying that's what happened here mind ?
Apart from acquiring the Ricoh - totally agree. They have access to substantial funds, if they need. Their UK accounts recently published showed income in the millions - I would expect that the majority of their total income is put in the investment vehicles held off-shore and not recorded here. Its now just a question of when they want to go.
FFP regulations are as poorly written as the administration regs, so no problem there. I imagine judging by Clarke's remarks they have already gained an exemption within certain limitations.
Could you please explain that theory for me ... slowly and in layman terms, so I can understand how it's done
SISU A makes £10M
SISU B makes £15M
SISU C (CCFC) loses £25M (mostly fees paid to A and B)
Overall SISU made no money, so can offset tax 'owed' against A and B profits against losses incurred by CCFC.
However they are paying themselves nice little management fees out of these companies, so TF and Joy are alright, whilst CCFC stays in a pile of sh*te
Sisu made less than 900k profit last year, and losses the previous two; so no they do not in themselves have the cash to invest in a stadium; they would have to look for investors.
And who would invest in a new Coventry football stadium, with the Ricoh sitting there and gates of 1500, planning issues etc. no one methinks.
You just completely ignored the pertinent opening lines of his statement to fit your argument. Par for the course.
Sisu made less than 900k profit last year, and losses the previous two; so no they do not in themselves have the cash to invest in a stadium; they would have to look for investors.
And who would invest in a new Coventry football stadium, with the Ricoh sitting there and gates of 1500, planning issues etc. no one methinks.
Figures wise, if the income from ticket, sponsorship and food sales is £1 million a year, if the regs were applied properly you would only be able to spend £600,000 on wages.
However, if you include loans of £4 million you can then pay wages of £3 million (total 'income' jumps to £5m) and no points deductions.
I have never come across loans being considered as income in any normal line of business. Well done FL!
Happy to be corrected.
Wasn't that the point of the questionWith all due respect, I think you need to read up a bit on what hedge funds do. Their accounts are virtually irrelevant.
Two things.
You said in a previous post that failing to comply with FFP regulation will result in points deduction ... I think it's transfer embargo.
In the post I quote you say only 60% of equity increase counts in the FFP calculation ... I believe (happy to be corrected) that it is 100%, but with a cap of £4m per year.
Two things.
You said in a previous post that failing to comply with FFP regulation will result in points deduction ... I think it's transfer embargo.
In the post I quote you say only 60% of equity increase counts in the FFP calculation ... I believe (happy to be corrected) that it is 100%, but with a cap of £4m per year.
I believe that you are quite correct that the penalty for non-compliance with FFP is a transfer embargo.
As a deterrent it certainly worked well in ensuring that we always filed our accounts on time didn't it
I don't think the lack of income is too much of a concern for sisu. Their exit require they can sell up to regain their investments. They will either build a stadium or acquire ACL - and as ACL are protected against sisu by CCc, Higgs and many ccfc fans, sisu will have to build a stadium of their own.
But if they can secure a good piece of land in a good location there may be more profit for them long term building than taking over ACL.
Oh and before anyone says FFP - there are ways around the wage cap limit to offset lack of income.
GPE no doubt about it,your spot on.Or is there any truth in the 'CCFC being used as a debt pit' theory???
Is that a 'debt-pit'? Is that how you think sisu dumps debt on the club?
Let me get that straight.
First they pump in between £20m and £30m.
Then they take out a couple of milions in directors salary.
Nope. Don't get it.
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