tag:blogger.com,1999:blog-487486960623783530.post415901241020964646..comments2024-03-27T10:38:08.826+01:00Comments on The Swiss Ramble: West Bromwich Albion - Like ClockworkThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-487486960623783530.post-34591501866144238042015-07-19T20:02:20.202+02:002015-07-19T20:02:20.202+02:00Thanks.
That's pretty much right. Clubs whose...Thanks.<br /><br />That's pretty much right. Clubs whose player wage bill was more than £52 million in 2013/14 are only allowed to increase their wages by £4 million per season for the next three years. However this restriction only applies to the income from TV money, so any additional money from higher gate receipts, new sponsorship deals or profits from player sales can still be spent on wages.<br /><br />There's also a question about the definition of wages here, i.e. if it excludes bonus payments, that would be beneficial to a club like West Brom, whose wages include a large performance-related element.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-17588847515456844192015-07-19T19:20:46.245+02:002015-07-19T19:20:46.245+02:00Nice blog, I have one question regarding the FFP r...Nice blog, I have one question regarding the FFP rules. As far as I remember there is a limitation in the yearly increase in wages of 4M, as long as the increase does not come from other sources than broadcasting. It seems WBA increased the wages by 11.5M, while the only other revenue source that may have increased significantly is the player trading. (I guess the income statement is on calendar year while the transfer numbers are per season, so it is not clear to me how much the player trading revenue increased). Is this how the FFP works, or could WBA be violating the rules despite of their financial prudence? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-61598894390203825792015-07-16T15:50:35.884+02:002015-07-16T15:50:35.884+02:00Thanks for this interesting piece, Rambler. I am p...Thanks for this interesting piece, Rambler. I am probably one of the 'uneducated' ones, but do understand the fundamentals of good business practise, and you confirm my own opinion that WBA FC is an extremely well managed football enterprise. The club has paid its way without the benefit of a mega rich backer, and as a founding member of the Football League (one of twelve), can be proud of its past and present.<br /><br />As for Liverpool's loss on Andy Carroll apparently being cited as good business in another comment, well I never!Bobnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-37286612904434743632015-07-15T07:35:56.334+02:002015-07-15T07:35:56.334+02:00Yes, I think I understand cash flow:
http://swiss...Yes, I think I understand cash flow:<br /><br />http://swissramble.blogspot.ch/2013/04/show-me-money.html<br /><br />But I'm surprised that you give the Andy Carroll saga as an example of good business. Seriously?The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-9513090719658694142015-07-15T06:30:57.835+02:002015-07-15T06:30:57.835+02:00Yes, I may.
But at least I understand what makes ...Yes, I may.<br /><br />But at least I understand what makes a business work, and it isn't profit.<br /><br />Let me give you an example, sorry if I make it too simple for a great business mind like you.<br /><br />Liverpool signed Andy Carroll for c£35M. They sold him a couple of years later for c£15M. They incurred a loss of £20M, and doubtless people like you will have been castigating them for losing £20M. The reality is in the year they sold him, they achieved an increased cashflow (spread over a couple of years) of £15M, that they could then invest in other players.<br /><br />Profit is irrelevant in football, it's just a means of mitigating tax. Cash is king.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-59124124569033614102015-07-14T21:41:49.434+02:002015-07-14T21:41:49.434+02:00Of course I could, but you will forgive me if I ca...Of course I could, but you will forgive me if I called it quits after 4,000+ words.<br /><br />By the way, while you're busy looking down on the "uneducated", you might want to check your grammar and in particular your rogue use of the apostrophe.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-54110080951495424992015-07-14T20:23:02.617+02:002015-07-14T20:23:02.617+02:00You can construct one yourself - it's not diff...You can construct one yourself - it's not difficult. Even a bit of "Balls theory" would give the uneducated on the fans forums something to chew over. All they ever talk about is profit, and it isn't that relevant to a football club that write's down it's assets so aggressively.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-30253385390032745602015-07-14T19:52:56.329+02:002015-07-14T19:52:56.329+02:00If you read any of my other pieces, you will see t...If you read any of my other pieces, you will see that I invariably comment on the cash flow, but unfortunately West Bromwich Albion Football Club Ltd have not included a cash flow statement in their accounts since 2010.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-50182801367517009142015-07-14T09:27:50.343+02:002015-07-14T09:27:50.343+02:00The other element missing is how debt has been ori...The other element missing is how debt has been originated (and subsequently repaid) by sweating the club assets, in order to buy back share capital. This is where the majority of the increase in shareholding for Peace has been funded from. It has certainly not been funded from Peace privately buying shares. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-77065701184269594322015-07-14T09:22:12.558+02:002015-07-14T09:22:12.558+02:00Not a bad assessment.
You have fallen into the &q...Not a bad assessment.<br /><br />You have fallen into the "profits trap" however". As you have highlighted, the losses are due to impairments on players contracts upon relegation.<br /><br />For your assessment to be complete, you should demonstrate a cashflow analysis over the last 10 years. This will show you why WBA has no debt, rather than concentrate on Profit. You can spend cash - you can't spend profit.<br /><br />7/10Anonymousnoreply@blogger.com