05 Jul 2019 20:57:55
Talk of ffp rules. My take on it we made a profit in Radz first season then the following season arguably our best in over a decade we made a loss is this because funds from Leeds United were used to purchase Elland road and place the ownership into a company owned by Radz. If we gained an asset worth more than the twenty odd million paid for how did we not profit from gaining an asset worth more than the purchase price. How in our best season for attendances and merchandise and investment and sponsorship did we make a loss. Answer because we paid for Elland road but it's not ours.
{Ed001's Note - that would not be covered under FFP if it works in the same way as UEFA's version.}
05 Jul 2019 21:08:03
Funds taken from Leeds United to buy elland road will show as a loss regardless of UEFA rules or ffp rules.
05 Jul 2019 21:11:00
Said that as well rads is hiding behind ffp debt bosses flaunt it they want promotion rads hides behind it why I don’t know.
05 Jul 2019 21:11:46
If we record a loss of 4.5 million on top of 10 million investment did we lose over 14.5 million in our best season in over a decade. I thought we were being run properly. So Massimo gets us to break even and in 1 year Radz has us at a loss of over 14.5 million. Please explain.
05 Jul 2019 21:31:29
How are we threatened by ffp if 39 million over 3 years in loses if after a profit of over 1 million and a loss of 4.5 means we apparently have made a loss of 3.5 million so we are 36 million inside the limit.
05 Jul 2019 21:54:11
Player wages are triple what they were under MC. Starter for 10. But loved MC and what he did!
05 Jul 2019 22:41:28
How are player wages triple what they were under MC. Apart from Bamford who has had their wages tripled.
06 Jul 2019 01:00:08
Wex, you really could criticise the accounts of any company in the way you want to if it really suits. But the point is why would Radz make it less likely that the club could comply with FFP rules? Surely what serves him best in your eyes is that he gets the club to the premiership and creams off the results or he gets the club to the premiership and sells it off at a high price for a healthy profit. Sorry but genuinely don’t understand your logic?
06 Jul 2019 07:12:25
Spanish he's a gambler who has sneaked half the pot off the table and into his pocket. Has taken a gamble on Costa. Radz will leave Leeds in debt and in the championship and walk away with elland road.
06 Jul 2019 07:23:53
Spanish how did we go 1 million profit to losing 14.5 million in a year. Not bamford because Vieira money brought bamford in last year.
06 Jul 2019 08:56:55
Spanish, as your post so eloquently suggests, I'm not entirely convinced that Wex fully understands his logic on this particular train of thought, so what chance do the rest of us have?
06 Jul 2019 09:18:42
I suppose it’s conceivable Radz stole funds from the club to buy the ground but highly unlikely . It’s a criminal act and why would some one so successful risk it all in that!
You also have your financial years and figures mixed up . Best I can tell to summarise -
2016 / 2017 - last MC season / under Monk - profit after player trading of £1m
2017 / 2018 - first Radz season / TC and Hecky managers - operating loss of just over £ 20 m, after player trading reduced to £4.5 m ( google the accounts it’s all there in black and white ) . The player trading in this year includes the full £15 m for Wood ( even though paid in instalments ) I believe and the dross that Orta bought in the Summer of 2017 .
2018 / 2019 - not reported yet . Second Radz season / MB’s first . No one knows for sure but the working hypothesis is that the losses will be large! Think about it . The operating loss last year was £20 m . But we have added significantly to costs with MB and his large team ( could be up to £4 m to £ 5 m there alone ) plus higher wages for the likes of Bam and Casilla . Then player trading saw a small net spend £10 m on Bam and Douglas and only £7m in for Viera . So nothing to offset the large operating loss, unless they can bring the Clarke sale into this year instead of next . Think financial year ends end of June . So even if revenues are up let’s say from £40 m to £50 m ( increased attendances / rise in commercial income ) we are still looking at a whopping loss . Probably around £20 m .
So that means for FFP purposes for the financial year commencing 2019 / 2020 ( this coming season ) , we are carrying forward the previous two year’s losses of around £25 m . We will need to have a profit or loss of under £14 m to stay within FFP . Sounds doable, but you have to bear in mind that operating costs are only going up and very hard to drive revenues much higher than they already are in Champ, so the operating loss is likely to be still £20 m plus . So we will need player sales again!
06 Jul 2019 09:53:35
No mention of 10 million investment RHC.
06 Jul 2019 09:56:20
And making up a figure of 20 million loss for last season out of thin air to back your post. Where have you pulled that figure out of.
06 Jul 2019 10:00:48
So we go from 1 profit to 4.5 million loss to 20 million . So losses are at near the 30 million mark under Radz yet we have practically the same squad as under MC and we are still in the championship. Please explain why we should be happy.
06 Jul 2019 10:56:42
RHC, good post and strong response. Thanks for trying to make such a good go with the figures. Wex is convinced that something “dodgy†is at play and I’m not sure anyone or anything will change his mind.
06 Jul 2019 11:09:25
Wex I’m close to the point of giving up on you . But not quite yet . 49ers investment went into Radz pocket not the club . He sold them some shares! If you take the time to read my explanation in full it explains the level of losses . The key is the operating loss before player trading . The £4.5 m loss in 17/ 18 would have been much larger were it not for CW sale . The playing squad is very different to when MC owned us . About 20 new players from first team to under 23’s . Highest salaries doubling from around £15 k to £30 k per week . Plus Radz is paying £ millions for MB and his huge team . Plus infrastructure improvements to ER and Thorpe Arch . Large operating losses as a result .
06 Jul 2019 11:34:04
I think the point is No sob really knows, so you have to go by what you see,
06 Jul 2019 11:49:30
Have you ever thought about going into politics RHC.
06 Jul 2019 12:18:28
That's Spanish's go to answer #you won't change wex # we don't understand business # we should be happy.1 question Spanish and RHC 30 million in loses and we are still in the same league in 2 years are we supposed to think it's all good. Yes or no answer please.
06 Jul 2019 12:39:14
In the same league with basically the same squad.
06 Jul 2019 13:17:47
Wex I’ve never said I’m fully happy with Radz . Just wanted to explain the financials and the FFP point is legitimate not an excuse not to invest . Furthermore, it’s not like Radz has taken over the club and made it loss making . The 16/ 17 accounts had a profit of £1m, only because of player trading . Before player sales the loss was just under £10 m . Radz has increased operating losses because of investment. Furthermore, take a look at the squad that finished 16/ 17 and 18/ 19 . You will see they are very different .
06 Jul 2019 15:43:06
You have still picked a figure of 20 million in losses out of thin air. RHC.