Liverpool report debt increase of £21.8m and 10-month loss of £40.5m

I'm no fiscal wizard, in fact i'm a fiscal fuckwit but the article highlights the true cost of chopping and changing the managers at any football club.

Some very good points have been made both for and against our debt, i'm not really that clued up on how businesses are run and i don't pretend to be either.

The fact remains that if we keep on buying substandard players and failing to qualify for Europe, exiting Cup competitions at will and underachieving then we will be fu**ed.

While football Clubs are essentially businesses nowadays the cold hard facts remain the same, the real business is done on that grass pitch, by the eleven players that are selected to spearhead that business.

If you want your business to do well then you try and employ the best candidates for that business.

Now if our players fail to perform over the coming Seasons then that debt will be a massive worry, there is no hiding from that fact.

Spot on mate -  if a farmer cuts the balls off his stud cattle how does he make money at the auction or anything else for that matter?

Can't argue with that mate, the 2 go hand in hand.

Spot on mate -  if a farmer cuts the balls off his stud cattle how does he make money at the auction or anything else for that matter?

Exactly lads. I have a strong feeling that this Summer is when we'll see if NESV/FSG walk the walk.

I'm thinking our final League placing will have an effect on how much investment is made - i.e. qualification for Europe.

This is what worries me though, as i see it, failure to qualify for Europe will warrant more investment than actually qualifying for Europe. I doubt NESV/FSG will see it that way though.

Exactly lads. I have a strong feeling that this Summer is when we'll see if NESV/FSG walk the walk.

I'm thinking our final League placing will have an effect on how much investment is made - i.e. qualification for Europe.

This is what worries me though, as i see it, failure to qualify for Europe will warrant more investment than actually qualifying for Europe. I doubt NESV/FSG will see it that way though.

Let's not forget though that these figures don't include the players taken off the wage bill, despite what the papers would have you think, and nor are the new partnership deals included.
We also have the added benefits of the Warrior deal which we didn't have with Adidas in terms of exclusivity, and that can only bode well in terms of revenue.

The bottom line here is that all other ventures should be undertaken with only one purpose in mind, and that is to bring in the best players we can.

Let's not forget though that these figures don't include the players taken off the wage bill, despite what the papers would have you think, and nor are the new partnership deals included.
We also have the added benefits of the Warrior deal which we didn't have with Adidas in terms of exclusivity, and that can only bode well in terms of revenue.

The bottom line here is that all other ventures should be undertaken with only one purpose in mind, and that is to bring in the best players we can.

With the optimistic projections in the financial sector it is to be hoped that the footballing issues are prioritised ahead of the good business model.

Link to accounts.
Directors Report and Financial Statements.
Liverpool FC accounts 2011-12

Here's the most interesting part:

Notes

9    Taxation

The Company has losses available to be offset against future profits amounting to £99.4m (2011 51.3m)

I don't have time to provide a full analysis of the figures, but reading through them there is the usual creative accounting going on to minimise tax liability against future profits, as well as non interest bearing inter-company loans to do the same.

When I look at this I see a healthy balance sheet. The P/L statement is not as important as the balance sheet, which is what we must concern ourselves with.

All in all, I see a healthy company.

Perhaps RedDebs or someone better versed in accounting than me could give us all a full analysis, but we should remember this is a Directors report rather than a full set of accounts, and as such it is concerned not just with the current financial activity, but is also part of longer term financial planning.

Just to add, this was for the period before BR came in, so decreases in the wage bill are not shown.
The next set of accounts will provide a much clearer picture of where we are in terms of finance, and moving forwards under BR.

"Off the pitch, we forged new partnerships with Warrior, Garuda and Cheverolet - the revenue from these contracts will show in the 2013-14 financial accounts.”

 Ah Garuda.

The airline that flies on rubber bands and the wings fall off.

Another prestige sponsor.

CRASH / HIJACK RECORD

http://en.wikipedia.org/w/index.php?title=Special%3ASearch&profile=default&search=Garuda+Indonesia&fulltext=Search


 There is a page named "Garuda Indonesia" on Wikipedia

    Garuda Indonesia
    PT Garuda Indonesia (Persero) Tbk (GIAA), publicly known as Garuda Indonesia, is the flag carrier of Indonesia . giant bird Garuda of ...
    66 KB (9,134 words) - 23:07, 5 March 2013

    Garuda Indonesia Flight 200 (section Garuda Indonesia)
    Garuda Indonesia Flight 200 (GA200) was the scheduled domestic passenger flight of a Boeing 737-497 operated by Garuda Indonesia between ...
    20 KB (2,852 words) - 20:07, 26 February 2013

    Garuda Indonesia Flight 152
    Garuda Indonesia Flight 152 (GA152, GIA152) was a scheduled domestic Indonesia n passenger flight from Jakarta to Medan , North Sumatra , ...
    3 KB (406 words) - 00:23, 28 February 2013

    Garuda Indonesia Flight 206
    Garuda Indonesia Flight 206 was a domestic Garuda Indonesia flight that was hijacked on 28 March 1981. The incident: The hijackers, a group ...
    4 KB (516 words) - 08:04, 2 February 2013

    Garuda Indonesia Flight 035
    Garuda Indonesia Flight 035 was a domestic Garuda Indonesia flight that struck a pylon and crashed on approach to Medan-Polonia Airport ...
    3 KB (371 words) - 13:47, 30 January 2013

    ...
    9 KB (819 words) - 14:08, 6 March 2013
    Garuda Indonesia Flight 150
    Garuda Indonesia Airways Flight 150 was a scheduled Indonesia n domestic passenger flight from Kemayoran Airport , Jakarta to Sultan ...

    3 KB (455 words) - 13:44, 30 January 2013
    Garuda Indonesia Flight 421
    Garuda Indonesia Flight 421 was a scheduled domestic flight operated by Indonesia n flag carrier Garuda Indonesia covering about 625 ...
    4 KB (493 words) - 07:09, 2 March 2013

    Garuda Indonesia Flight 708
    Garuda Indonesia Airways Flight 708 was a scheduled passenger flight on 16 February 1967 which crashed upon landing at Sam Ratulangi ...
    3 KB (382 words) - 17:34, 5 March 2013

    Garuda Indonesia Flight 865
    Garuda Indonesia Flight 865 was a scheduled international flight from Fukuoka city , Japan , to Jakarta , Indonesia that crashed at ...
    4 KB (483 words) - 06:39, 1 March 2013


KWALITEEEE

 Ah Garuda.

The airline that flies on rubber bands and the wings fall off.

Another prestige sponsor.

CRASH / HIJACK RECORD

http://en.wikipedia.org/w/index.php?title=Special%3ASearch&profile=default&search=Garuda+Indonesia&fulltext=Search


 There is a page named "Garuda Indonesia" on Wikipedia

    Garuda Indonesia
    PT Garuda Indonesia (Persero) Tbk (GIAA), publicly known as Garuda Indonesia, is the flag carrier of Indonesia . giant bird Garuda of ...
    66 KB (9,134 words) - 23:07, 5 March 2013

    Garuda Indonesia Flight 200 (section Garuda Indonesia)
    Garuda Indonesia Flight 200 (GA200) was the scheduled domestic passenger flight of a Boeing 737-497 operated by Garuda Indonesia between ...
    20 KB (2,852 words) - 20:07, 26 February 2013

    Garuda Indonesia Flight 152
    Garuda Indonesia Flight 152 (GA152, GIA152) was a scheduled domestic Indonesia n passenger flight from Jakarta to Medan , North Sumatra , ...
    3 KB (406 words) - 00:23, 28 February 2013

    Garuda Indonesia Flight 206
    Garuda Indonesia Flight 206 was a domestic Garuda Indonesia flight that was hijacked on 28 March 1981. The incident: The hijackers, a group ...
    4 KB (516 words) - 08:04, 2 February 2013

    Garuda Indonesia Flight 035
    Garuda Indonesia Flight 035 was a domestic Garuda Indonesia flight that struck a pylon and crashed on approach to Medan-Polonia Airport ...
    3 KB (371 words) - 13:47, 30 January 2013

    ...
    9 KB (819 words) - 14:08, 6 March 2013
    Garuda Indonesia Flight 150
    Garuda Indonesia Airways Flight 150 was a scheduled Indonesia n domestic passenger flight from Kemayoran Airport , Jakarta to Sultan ...

    3 KB (455 words) - 13:44, 30 January 2013
    Garuda Indonesia Flight 421
    Garuda Indonesia Flight 421 was a scheduled domestic flight operated by Indonesia n flag carrier Garuda Indonesia covering about 625 ...
    4 KB (493 words) - 07:09, 2 March 2013

    Garuda Indonesia Flight 708
    Garuda Indonesia Airways Flight 708 was a scheduled passenger flight on 16 February 1967 which crashed upon landing at Sam Ratulangi ...
    3 KB (382 words) - 17:34, 5 March 2013

    Garuda Indonesia Flight 865
    Garuda Indonesia Flight 865 was a scheduled international flight from Fukuoka city , Japan , to Jakarta , Indonesia that crashed at ...
    4 KB (483 words) - 06:39, 1 March 2013


KWALITEEEE

If they pay the money, what difference does it make?

I can't see how any of that is relevant, and just seems like another excuse to have a moan.

QPR are in more debt.
Now thats scary.

If they pay the money, what difference does it make?

I can't see how any of that is relevant, and just seems like another excuse to have a moan.

No . Just introducing a bit of useless information.

Perhaps not. Would you fly them ?
Garuda crash planes and Standard Chartered get their hands smacked for naughties in the Middle East.

Ah well . 
Take the money and forget the rest .
None of us are perfect ... eh?

Sponsors demand high standards from the club surely the club should expect high standards from the Sponsors.From the history of Garuda shown by Skip surely Garuda are not worthy of being associated with Liverpool Football Club.

No . Just introducing a bit of useless information.

Perhaps not. Would you fly them ?
Garuda crash planes and Standard Chartered get their hands smacked for naughties in the Middle East.

Ah well . 
Take the money and forget the rest .
None of us are perfect ... eh?

 
Fair enough.

What's worse is that our accounts are done by KPMG, so we're feckin tax dodgers as well.

Hang on hang on hang on.... Were back to £100 Million in debt..? What the hell is going on?!

We have been told for years that the club is moving in the right direction - and for years of not spending big and having to sell before we buy we are told its because we are going to become a viable business. Yet we have moved backwards again... Sell it anyway you want - we are going backwards on the pitch and off the pitch. NESV have hidden behind 'bad debt' at the club and people say 'it was the mess H&G left' - but that was 3 years ago... How long can you blame the previous regime?!

I thought we would be debt free by now - but it appears we are now worse off, inspite of new deals that we are told are the best... Something dosent add up here!

Why would any business want to be debt free? debt is good for owners. I remember I used to say to our accountants to look how we can minimise tax etc...they would come back with proposals and we would implement them, so some years we could make it look really bad, as if we were making a loss (on paper) but if we wanted to borrow money etc..we could quickly make it look good with a healthy profit. I am (was) no expert and relied on the expertise of the accountants, but we did a lot of buying (holding bulk stock, investments, holding contracts back to certain dates) to keep the balance down, and when we wanted to look strong we sold (used bulk stock, release investments and releasing contracts we had held back). I loved nothing more than using the banks money instead of my companies money. These latest figures are nothing to worry about IMO, the owners know how to run a business.

No doubt - but do they know how to run a football club..?

How will this impact the FFP regulations?

No doubt - but do they know how to run a football club..?

How will this impact the FFP regulations?

Not going to affect FFP at all as the lookback period began summer of 2012, this was part of the clean-up and should have been expected to some extent. Moving forward from this we could see a 15m loss per year for the next 3 years without repercussion of FFP, and I suspect we will.

Still, for me I dont like the idea of being in debt... If it has no impact on FFP then that's good - however I still wonder what they will actually do!