Liverpool FC Forum

by **mark the red** » Wed Feb 01, 2006 12:26 pm

i didnt think komp cos so much

by **maximus** » Wed Feb 01, 2006 12:39 pm

I am sure there is no club in the world today, that does not run with an element of debt, in fact I would go so far as to say that there are very few companies with a turnover of £121 million that run without an element of debt, the success of any business in relation to debt is:

1- The size of the debt in relation to the company's income/assets, this is the 'gearing' - too High and it all falls down like a pack of cards (potentially)

2 - The debt being servicable? If you compare commercial debt to a man that earns say £20k per year, on the face of it a mortgage of £80,000 (debt), however if that same man with the same income had a mortgage of £200,000 then his 'gearing' would be too high, because his income generated (20K P.A.) would not be able to service that debt. These principals put very simply are the same principals that apply in commerce and industry.

The point is as always is that it depends on our clubs ability to generate more income through maketing, advertising as well as the bread and butter gate receipts on a saturday afternoon. This IMO is where our club is weaker than the opposition. We just do not seem to be able to put together a blockbusting shirt deal worth 20 million P.A., or a blockbusting stadium deal worth 10 million P.A. for 10 years, I feel this was the opportunity given the timing as CURRENT European Champions (coupled with our pedigree and history) to be able to put these sort of deals together to secure the long term futire of our club, not to mention to be able to provide Rafa with the funds to build the squad

As for the bottom line?? Yes, on the face of it a £7.53 million profit does seem small for a club that are the current Champions of Europe and all that entails, however, you can look at this in a number of ways

1 - This profit has been turned around from a £21 million pound LOSS a swing of £28 million pounds, that is a phenomenol turnaround, and indicates how important the Euro cup run was last season (financially) and indeed how important a prolonged Euro cup run is to a top premership club, (Manure will see the effects of an early Euro Cup exit in there next set of accounts

)

2 - If you compare our figures to say....Manure, it makes very good reading, similar profits on 2/3 of the turnover??

These figures tell me that the club is going in the right direction, and with the slow exit of all the previous regime dead wood and another prolonged Euro Cup run and domestic success (FA Cup?) Prem League. The future is certainly bright.

YNWA

by **mark the red** » Wed Feb 01, 2006 12:41 pm

the legacy of houllier still goes on

i hate that man

by **tommycockles** » Wed Feb 01, 2006 12:57 pm

Big Niall wrote:I'm dissapointed that winning the CL which is worth 20-25m only brough profits to £7m.

And people here think GH rebuilt this club - he nearly destroyed it and we are still paying the cost of having him and his rubbish players.

I agree with your thinking; however, rather than seeing the champions League as only bringing in a £7.53m profit- if we take into account the loss the previous year of £18.2m that's actually an turnaround of £25.73m over a year which is probably about right for winning the Champions League.

Lets win it again this year and a similar increase should push us to around £33.26m profit!!! (all other things being equal)

by **tommycockles** » Wed Feb 01, 2006 1:00 pm

maximus wrote:1 - This profit has been turned around from a £21 million pound LOSS a swing of £28 million pounds, that is a phenomenol turnaround, and indicates how important the Euro cup run was last season (financially) and indeed how important a prolonged Euro cup run is to a top premership club, (Manure will see the effects of an early Euro Cup exit in there next set of accounts )

Sorry- just seen Maximus' quote (that's what happens when you pick up the phone in the middle of posting).

by **stmichael** » Wed Feb 01, 2006 1:35 pm

nice one CIGGY. interesting read.

incidentally I'm glad it was you who posted these figures and the source. if some others on here had posted them they would have been about as accurate as a blind epileptic throwing a javelin whilst standing on a ball in an earthquake measuring a minimum of 8 on the Richter scale in a force 9 gale.

by **Ciggy** » Wed Feb 01, 2006 1:37 pm

Where not as bad as some other clubs though Newcastle Newcastle are in £58m debt and wont qualify for europe.
Look at there pay roll audit from 1998 to 2005 :oops:

Leeds springs to mind, http://www.nufc-finances.org.uk/payroll.htm
Look how much Fat freddy is pocketing http://www.nufc-finances.org.uk/boardpay.htm.
And look how much they have spent on players from 1998 to 2005/6.
http://www.nufc-finances.org.uk/transfers.htm.

Arsenal another one in deep sh.it a new season ticket is 4.800 pound, to fund the new stadium, 2005 £153.331m 2004 £141.268m debt.
Money borrowed for new stadium is a whopping £260m loan.

Chelsea moneybags: Report a loss of £140 million pounds. 140 million pounds for the year to end-June 2005, almost 60 percent bigger than the previous 87.8 million pound loss.

Manure sold in the USA: Man Utd reveal £12.3m profit drop

Manchester United made a profit of £46m for the year ending June 2005 - a drop of £12.3m from the previous 12 months
Bought by Glazer from loans worth, £790million pounds :laugh:

And we think we are skint look no further than that and no CL for the rest of the season either, best way to hurt these feckers in in their pocket anyway Glazer takes them into liquidation happy days

See so its not all doom and gloom.

by **stmichael** » Wed Feb 01, 2006 2:00 pm

Ciggy wrote:Where not as bad as some other clubs though Newcastle Newcastle are in £58m debt and wont qualify for europe.
Look at there pay roll audit from 1998 to 2005 Leeds springs to mind, http://www.nufc-finances.org.uk/payroll.htm
Look how much Fat freddy is pocketing http://www.nufc-finances.org.uk/boardpay.htm.
And look how much they have spent on players from 1998 to 2005/6.
http://www.nufc-finances.org.uk/transfers.htm.

the thing is, since they spent all that money they've actually got worse. i mean you thought we were bad, they spent a combined £14 million on the chuckle brothers in defence and £7m on carl cort. :laugh:

breaking news: newcastle defenders get recording contract

by **zarababe** » Fri Feb 03, 2006 12:10 am

This is interesting, I think that the clubs venture into America, through the 'Soccer Academies programme' will no doubt be a projected source of income for merchandisig etc in the future.

The key is reaping the rewards throught the CL win, the Popularity of the club in Spain and places like Africa and Asia, where the club is hot, hot, hot...

Chelsea's plan of action to 'break even' on by 2010 is based on propelling the popularity of the club worldwide, no-doubt Russia etc cos of the connections..

that'll be rich lol.. but we must pursue a similar strategy from a position of strength, as we are aleady a worldwide brand and name..with a history and a following all over the world.. unlike 'some'

by **laza** » Fri Feb 03, 2006 2:32 am

Interesting read

Brights spots were for me how much we actually got for Diouf and the fact despite bringing in some quality players and getting rid of some deadwood our wages bill went down.
Those disappointed that our profit was only 7 million even after CL win should wonder what the bottom line would have been if we hadnt won it

by **A.B.** » Fri Feb 03, 2006 2:50 am

Just shows how much of a difference a new manager has made on this club.

by **kazza** » Fri Feb 03, 2006 8:56 am

Great read ciggy.

I wander how much extra money we would have got had we completed the planned tour of the US and Far East as European champions rather than having to qualify from the first round of the CL. The tour would have brought in an extra 5 mill at least, aside from the extra merchandising sales.

by **Big Niall** » Fri Feb 03, 2006 11:00 am

kazza wrote:Great read ciggy.

I wander how much extra money we would have got had we completed the planned tour of the US and Far East as European champions rather than having to qualify from the first round of the CL. The tour would have brought in an extra 5 mill at least, aside from the extra merchandising sales.

We only have ourselves to blame for having to qualify for CL. We should have finished above Everton FFS, failure to do that is what has cost us the money from far east (although got good crowds at anfield and TV money too for qualifiers)

by **Ciggy** » Fri Feb 24, 2006 9:50 am

The meeting wasnt has abrupt as last year, and the European Trophey on show had the shareholders in awe of Rafa, David Moores wasnt present he was ill, still about 4 years away from the new stadium, Steve Morgan still bitter.

Quotes from the AGM.

Q. Why did Michael Owen leave?

R. You better ask Michael Owen that.

Q. Houllier left in the 2003/4 season, which bright spark decided to sign Djibril Cisse

to which the crowd burst into laughter.

R. It was done 12 months before when Houllier was then manager.

Rafa spoke well apparently but no major news of cash investments or new stadium.

by **RAFABENITEZ** » Fri Feb 24, 2006 10:10 am

Ciggy wrote:The meeting wasnt has abrupt as last year, and the European Trophey on show had the shareholders in awe of Rafa, David Moores wasnt present he was ill, still about 4 years away from the new stadium, Steve Morgan still bitter.

Quotes from the AGM.

Q. Why did Michael Owen leave?

R. You better ask Michael Owen that.

Q. Houllier left in the 2003/4 season, which bright spark decided to sign Djibril Cisse

to which the crowd burst into laughter.

R. It was done 12 months before when Houllier was then manager.

Rafa spoke well apparently but no major news of cash investments or new stadium.

is this really what was said this year?

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