tag:blogger.com,1999:blog-487486960623783530.post5346410910475381062..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: Liverpool's Future StrategyThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger58125tag:blogger.com,1999:blog-487486960623783530.post-87945424404950946452011-07-20T04:13:48.471+02:002011-07-20T04:13:48.471+02:00Wow. Loved this article and have been slowly read...Wow. Loved this article and have been slowly reading some of the others. Thanks to the author for taking the time to do such impressive research and analysis.<br /><br />Keep up the great work.Brockhttps://www.blogger.com/profile/12939882400278183993noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-70141422818027178202011-07-09T01:03:15.217+02:002011-07-09T01:03:15.217+02:00Yeah, was going to mention that the tweet by Henry...Yeah, was going to mention that the tweet by Henry brought me onto this blog.. I read your Palermo and RM blogs first and they were excellent! Then I did a search for my club Liverpool and was very happy to find an article on our new owners..<br />Keep up the good work!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-50433733567084806082011-07-05T23:13:42.048+02:002011-07-05T23:13:42.048+02:00What an excellent article. ThanksWhat an excellent article. ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-80961440498613803442011-07-05T20:50:19.752+02:002011-07-05T20:50:19.752+02:00EVERY LIVERPOOL SUPPORTER SHOULD TAKE GREAT PLEASU...EVERY LIVERPOOL SUPPORTER SHOULD TAKE GREAT PLEASURE IN THIS ARTICLE IT CLEARLY SHOWS HOW BADLY THE CLUB WAS BEING RUN,BUT MORE IMPORTANTLY SHOWS THE BLUEPRINT OF OUR FUTURE WHICH I THINK IS BRIGHT,THANK GOD WEVE GOT KENNY ON BOARD REINSTATING THE OLD VALUES AND NEW OWNERS WHO WANT TO TAKE US BACK TO THE GLORY DAYS....JFT96 YNWAREDKUZnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-2281190030759256452011-07-05T20:25:29.203+02:002011-07-05T20:25:29.203+02:00You'll Never Walk AloneYou'll Never Walk AloneLiverpoohttp://www.liverpoolbg.com/noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-39399296755604828082011-07-05T20:22:00.687+02:002011-07-05T20:22:00.687+02:00Not sure if you heard about this but apparently Mr...Not sure if you heard about this but apparently Mr. Henry enjoys your blog!<br /><br />"Consistently remarkable, excellent analyses on the business of football" was what he tweeted (5 July 2011)<br /><br />Excellent article and easy enough reading even for those of us that are not totally up to date with topics like accountancy!<br /><br />Was a pleasure reading such a well constructed article on a very interesting subject.<br /><br />All the Best Swiss!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-56993969881178611392011-06-03T20:03:10.206+02:002011-06-03T20:03:10.206+02:00"the value of the New York Yankees’ official ..."the value of the New York Yankees’ official cable network is three times as high as the club itself."<br /><br />...because NY Cable TV companies lost a court case and have a) carry the channel and b) to pay Yankee TV (or whatever it is called) $1 or so for every subscriber they have (even only those on the basic package)!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-12223873250914962882011-06-01T07:40:42.838+02:002011-06-01T07:40:42.838+02:00Excellent article! Intelligent contributions from ...Excellent article! Intelligent contributions from The Swiss Ramble & Zonal Marking amongst others shame many journalists/experts who make a living in the national press. Great detail, effort, expertise and warmth has been put into this.<br /><br />I've read a few articles before and I'm amazed! I'm sure other fans will wait their turn for the inspecting eyes of the Swiss Ramble to gaze upon their club but the wait is worth it!Chukwudi Doziehttps://www.blogger.com/profile/15824051971207716648noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-49231192011328178492011-05-29T07:44:28.012+02:002011-05-29T07:44:28.012+02:00Really appreciate the effort and the extent that ...Really appreciate the effort and the extent that you go to in responding to post-article requests. You are great at breaking down otherwise complicated accountant speak into easily readable paragraphs.jdpapa3http://random.comnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-71825220197149216032011-05-26T06:21:18.935+02:002011-05-26T06:21:18.935+02:00Typically high-quality article here. As a Boston ...Typically high-quality article here. As a Boston resident who was a Sox fan long before I ever began following European football, there's one thing that I think Liverpool fans should be more aware of. <br /><br />Ever since John Henry and NESV took over, the Red Sox farm system- in essence, the reserve/trainee and youth teams(numbering about 140 players total)- have undergone a dramatic improvement. It is extremely important to draft and sign good baseball prospects in the 18-21yo range, since a major league club like the Sox will have 5-6 years of a promoted prospect at comparatively low wages. The ability to bring up a couple high quality young players to start for cheap(usually at around $400k/year- e.g. Jed Lowrie, Daniel Bard, Clay Buchholz) allows the club to splash out for a big signing(e.g. the monster contract of 7 years/$154 mil for Adrian Gonzalez, one of the best hitters in the game) or two each season to hopefully win the championship. Another thing is that Boston has been one of the organizations most willing to take a shot on prospects from independent minor leagues and have found some decent players. Perhaps the closest analogy would be a Premier League team being able to effectively scout non-League football and pick out a player who, after a year or two in the reserves, turns into a solid squad player who can fill a specific role or at least provide depth- and do so for low wages.<br /><br />Before the takeover, Boston's farm system was almost always in the bottom third of Major League Baseball teams. Since then, we've almost always been in the top third. If John Henry and FSG stay true to form, there will probably be significant investment in the academy, and a greatly expanded scouting network in South America and Asia.Emilnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-66023594993413058052011-05-25T21:37:14.703+02:002011-05-25T21:37:14.703+02:00Thanks for explaining the double entry system in a...Thanks for explaining the double entry system in accounting..Appreciate the effort..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-35720689978283190782011-05-25T17:59:11.683+02:002011-05-25T17:59:11.683+02:00@Anonymous (4:53),
We cannot be certain exactly w...@Anonymous (4:53),<br /><br />We cannot be certain exactly what Henry was referring to when he spoke of debt, as he might have been talking specifically about the large balances with RBS and Wachovia, without including an overdraft.<br /><br />Nevertheless, from the accounts for Liverpool Football Club and Athletic Grounds Ltd, we can see that at the last year-end (31 July 2010) the club had net debt of £123m, comprising inter-company loans £104m and bank loans £38m less cash £19m. The accounts confirm that the inter-company debt was eliminated following the acquisition, which would leave just £38m - in line with Henry's assertion.<br /><br />The accounts also state that the club took out a new £92m credit facility after the acquisition, analysed as: stadium £47m, letters of credit £25m and working capital £20m. They confirm that £86.6m of this facility had been utilised by 31 January 2011.<br /><br />I don't consider this credit facility as sinister in any way. It effectively replaces the previous £97m RBS facility that Liverpool had and is normal practice for most companies.<br /><br />Much of the facility is just for the stadium debt that has been built up over the years, while my guess is that the majority of the increase has been used for transfer fees and normal working capital requirements.<br /><br />In theory, Liverpool's activity in the January transfer window nets out, as they bought Carroll and Suarez, but also sold Torres. However, it depends on how the deals were structured, e.g. the timing of the payments for each deal. This might be further complicated by stage payments.<br /><br />What we do know is that working capital requirements vary during the year at a football club, as much of the cash inflow is "lumpy", e.g. season ticket money is received upfront, while TV money comes in a couple of slices. Meanwhile, costs are spread fairly evenly throughout the year.<br /><br />In summary, I don't think that the debt is anything to worry about.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-63136560041923712802011-05-25T17:22:20.938+02:002011-05-25T17:22:20.938+02:00@Steven,
Yes, United's bond prospectus states...@Steven,<br /><br />Yes, United's bond prospectus states that £17.2 million of the tax liability was due to the sale of a player. Given the sums involved, that must surely be Ronaldo.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-16624594807510556872011-05-25T16:53:59.883+02:002011-05-25T16:53:59.883+02:00Brilliant article, think you've reached new he...Brilliant article, think you've reached new heights with this one. <br />Just one question in relation to the current credit facilities on the club. You state that “The really good news is that Henry has confirmed that the change in ownership has removed all the debt except for £37 million for development work on the proposed new stadium, which is part of a £92 million credit facility agreed with RBS. Normal working capital requirements mean that £87 million of this had been used by 31 January this year.”<br />Does this mean that after takeover LFC had access to £92m in credit and was only using £37m of it after takeover, yet by the end of January they were using £87m of this facility? And if so how could they be using so much extra in the space of a few months? i.e. is it (a) further losses during that period, (b) paying for the purchase of players and sacking of “the hodge” before end of January, (c) reducing trade creditors or increasing debtors (d) something else I’m completely missing? <br />I just can’t get my head around and extra £50m in the space of a few months.<br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-41613101417641457582011-05-25T15:41:54.344+02:002011-05-25T15:41:54.344+02:00Superb article and a must read for any liverpool f...Superb article and a must read for any liverpool fan and indeed any sensible football fan. These guys have our best interests at heart because we have a shared interest in succeeding.<br /><br />I just hope the new UEFA financial fair play rules are adhered to by the likes of Chelsea and Man City otherwise what is the point. Uefa will need to show a willingness to impose strict penalties and tackle the issue head on.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-39388767364793629842011-05-25T13:19:08.938+02:002011-05-25T13:19:08.938+02:00@swiss
Excellent article. A question I've bee...@swiss<br /><br />Excellent article. A question I've been meaning to ask. When a player is sold do the club have to pay tax? It's just that I noticed during the Man United bond issue there was a tax liability of circa £17-18m which I put down mainly to the sale of Ronaldo.Stevennoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-46727142217403167682011-05-25T12:02:48.150+02:002011-05-25T12:02:48.150+02:00@Anonymous (10:58),
This is a bit tricky to under...@Anonymous (10:58),<br /><br />This is a bit tricky to understand if you're not an accountant, but let's try to explain.<br /><br />When Ronaldo was bought, the 80m transfer fee was booked as an asset in Madrid's books with their cash being reduced by the same amount. At that point, there was no impact on the profit and loss account.<br /><br />As you rightly say, after a year 16m amortisation was charged to the P&L. This reduced the value of the asset in the balance sheet from 80m to 64m, so that's where the difference is.<br /><br />Not sure if you know how double-entry accounting works, but this is exactly how it would be booked:<br /><br />Dr Asset 80<br />Cr Cash 80<br /><br />Dr Amortisation 16<br />Cr Asset 16<br /><br />Hope that helps clarify amortisation.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-50209810009813022812011-05-25T11:52:12.480+02:002011-05-25T11:52:12.480+02:00Thanks for all the very kind comments. It took me ...Thanks for all the very kind comments. It took me 3 days to write this article, but it's all worthwhile with feedback like this. I have quite a few Liverpool supporting friends, so I really wanted to do the story justice.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-20088269713153717402011-05-24T22:58:36.155+02:002011-05-24T22:58:36.155+02:00Hey Rambler, great article.. just a question if u ...Hey Rambler, great article.. just a question if u could clarify.. I'm still unclear about this amortization business.. Let's take ronaldo's 80 million transfer for example.. Real pay 80 million upfront and amortize it over 5 years for 16 mill every year.. Now the year they bought him they pay 80 mil but report only 16 mil.. Shouldn't this create a difference of 64 mill in the accounts for the year they bought him?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-34878968024112419152011-05-24T21:19:27.291+02:002011-05-24T21:19:27.291+02:00Cheers for the thrid article about Liverpool, my c...Cheers for the thrid article about Liverpool, my club! As usual, the article is very interesting and like many LFC fans, there is hope things will change for the better. <br />I agree that Hicks and Gillett were a mistake, although I was lucky enough to get some cash from them when they bought the club (as shareholder). But the end cost was tremendous for the Reds. <br />I think the main issue remains the stadium. New ground, redeveloping Anfield, ground sharing with Everton? With a 45000 seater, we cannot compete...Lets hope this is resolved as quickly as possible...Frednoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-68006320485289257992011-05-24T20:37:42.545+02:002011-05-24T20:37:42.545+02:00Terrific article. A great combination of past perf...Terrific article. A great combination of past performance analysis and educated forecasting. Also profiles the new owners in an unbiased and accurate manner. This article reaffirms my belief that the club is heading in the right direction.Marty LFCnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-44998498232801432782011-05-24T19:44:39.437+02:002011-05-24T19:44:39.437+02:00Great article .. made my day.. i would like to add...Great article .. made my day.. i would like to add one more thing. FSG is not the only shareholder in LFC, there will be many small investors like Len Bron who will be plowing there money .. it will be interesting to see how they will create the revenue stream.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-6038488597085741982011-05-24T17:06:23.698+02:002011-05-24T17:06:23.698+02:00Anonymous 8.52? Your CLEARLY either a sad Manc'...Anonymous 8.52? Your CLEARLY either a sad Manc' worried about what MIGHT come now that LFC have the owners United WISH they had that WON'T destroy them with debt or else a sad Chelski fan still crying into his cornflakes that we sold you Torres, effectively mugged you for 50 million AND got the better player by far to replace him in Lil' Luis Suarez.<br /><br />Just so you know? Money ISN'T the be-all and end all - It does NOT trump hard work and effort which funnily enough is how United got there in 1992/93 the first time THEY did it after 26 years. IF Fenway have the right strategy and put in the right amount of money? They WILL get the rewards - Now a sad idiot like yourself might not recognise that fact so desperate are you for our recent decline to continue but this WILL Happen nonetheless. Oh and United? Watch them GO in a couple of years and I mean straight DOWN - What happened Last October with Liverpool at the Courts etc? Will look like a picnic by comparism to WHEN the Glazers default and take United down with them in flames and they WILL. Enjoy it while you can United lovers. Glazers will take it all away soon enough.........<br /><br />One more thing for the benefit of anonymous 8.52? and his idiotic ideas re' Liverpool - You think we have NO money do you? I suggest you google Fenway and see HOW many (rather wealthy) organisations it's comprised of - John Henry is just the FACE of a FAR larger and more powerful organisation than many realise (in particular the New York Times investors within the groups - Check the list of their owners). Fenway have FAR more power and strengh behind them than many think or might see at first - far, far more- They can rival even Abramovich quite easily and rather more so now he's considerably less rich thanks to the crashes of recent years. Fenway has a LOT of steel behind the outer velvet glove it presents to the world - Not that it's obvious to the fools who doubt them until it's Far to late......<br /><br />Anyway - With THAT sort of power behind Liverpool? You'd better believe Anonymous that we WILL be back and far sooner than many think and when we are? We'll be there to stay as well............Redshadownoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-61158805280561018002011-05-24T16:03:53.478+02:002011-05-24T16:03:53.478+02:00Excellent article.
The Premier League money for 2...Excellent article.<br /><br />The Premier League money for 2010-11 has been confirmed at £55.2M.<br /><br />Hopefully at least this season, the loss of European TV money will be offset by £37M less in annual interest payments.JDhttp://www.anfield-online.co.uknoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-77345377205849134212011-05-24T13:09:01.110+02:002011-05-24T13:09:01.110+02:00Quality article Kieron, thanks. A nice compilation...Quality article Kieron, thanks. A nice compilation of the relevant info surrounding our American owners. Although I was aware of the facts and figures, your presentation of them in one article is excellent...and leaves me feeling vaguely optimistic!redtrev73noreply@blogger.com