2 million cash pumped into the business in return for shares. Reported at companies house.

Edited December 6, 20214 yr by Mounts Kipper

I'd be asking some serious questions if I were a board member at WBA

I have glanced over the new SCR rules.....Glance being the operative rules. Seems a few on here have misunderstood them or have i???

The rules state we can spend up to 85% of our turnover plus a further 13m on wages for all staff.....It matters not how much we lose in that season.

So we could lose 50m and still have a healthy budget.....Which will give teams like Stoke a huge advantage as it wont matter how much they lose they will budget to push all of that 85% to the limit

5 minutes ago, masi 51 said:

I have glanced over the new SCR rules.....Glance being the operative rules. Seems a few on here have misunderstood them or have i???

The rules state we can spend up to 85% of our turnover plus a further 13m on wages for all staff.....It matters not how much we lose in that season.

So we could lose 50m and still have a healthy budget.....Which will give teams like Stoke a huge advantage as it wont matter how much they lose they will budget to push all of that 85% to the limit

The board can only inject a maximum of £33M in equity over a rolling three-year period, with a maximum of £15M in any given season

.

Edited July 13Jul 13 by Lt. Aldo Raine

Are you on a wind up again?

If we lose £50m the club has gone bust.

Have we already bought the women’s team? I think it was Villa who bought their own women’s team for about £100 million which gave them more scope for inward investment and general financial chicanery. No idea if I’m right or even if it’s still legal but no doubt somebody will know.

It was just a example....Ok if Stoke lose 50m they will still be able to spend 85% of turnover on wages. So our losses be they 5m or 14m have no bearing in what we can spend this season

28 minutes ago, Sluffy said:

Are you on a wind up again?

If we lose £50m the club has gone bust.

Explain how Preston can spend £6M on 1 player, but we can't without breaking the same rules.

9 minutes ago, masi 51 said:

It was just a example....Ok if Stoke lose 50m they will still be able to spend 85% of turnover on wages. So our losses be they 5m or 14m have no bearing in what we can spend this season

Depends on what money have in their pot - a £50m loss may well bankrupt them as well.

It is simple to understand this really, it goes something like this -

A club starts a season with something in their 'pot', under SCR they can add to it but only by a maximum of £15m per season and a maximum investment of £33m over a three year period.

The first thing any club needs to do with that money is to be able to cover its trading loss for the year ahead.

But it doesn't stop there, they have to plan for the season after that as well, meaning they can't spend all of their pot in year 1 (or at least it would be unwise to do so)

Same again to have something in their pot for when they reach year 3.

So once the clubs do their financial projections, whatever they can spare from their starting 'pot' together with what they invest from the £33m they are allowed to put in (limited to a maximum of £15m in a single year) they will be able to put towards their transfer budget for that season (summer and January windows) so clubs may not even spend all their funds in summer to hold some back for the January window in case things needed to be fixed)

Clubs can add to the pot from player sales but in our case I can't see it being that much if we are able to move Randall and/or McAtee on but hopefully in year 2 and 3 we have developed some of the players we have/brought in and raise money that way.

SCR is nothing about trading loss....It is about spending a maximum of 85% of turnover on wages plus a extra say 11m per season

Teams like West Ham, Wolves etc will have both the biggest turnover and losses in the Championship so will be able to buy practically who they wish despite Massive losses each season

Edited July 13Jul 13 by masi 51

Just when I thought it was safe to read this thread again

9 minutes ago, Ani said:

Just when I thought it was safe to read this thread again

So you posted on this thread and the rumours thread and offered nothing...ok

3 minutes ago, masi 51 said:

So you posted on this thread and the rumours thread and offered nothing...ok

?? This was a joke and I was agreeing with you on the thread.

1 minute ago, Cheese said:

Explain how Preston can spend £6M on 1 player, but we can't without breaking the same rules.

See post above.

Exactly the same scenario as we and all the other Championship clubs face.

Fwiw I reckon we could buy a £6m this season if we wanted to (I reckon we have something like £12m in the pot at the moment (see my post -Transfer Gossip page 1928) but it is unlikely that we will because the logic goes something like this.

Preston is an established Championship side, so are looking to improve a on an existing Championship squad so can target a player for £6m knowing that the rest of their squad are good enough to keep them up (maybe even challenge for promotion perhaps?)

We on the other hand need to establish a Championship squad first so not much point spending £6m on a marquee signing if it means the rest of the squad isn't good enough to keep us up.

It might be that FV decides to go all in on year 1 but that would be highly risky and I can't see that happening - you really need to read my post in the Transfer Gossip thread as to understand why that is.

I would normally just copy it and post it up on here but I just get too much shit from everyone about how long my posts are.

Sorry.

We should get Trafigura to sponsor the Fan Zone or summat

30 minutes ago, masi 51 said:

SCR is nothing about trading loss....It is about spending a maximum of 85% of turnover on wages plus a extra say 11m per season

Teams like West Ham, Wolves etc will have both the biggest turnover and losses in the Championship so will be able to but practically who they wish despite Massive losses each season

I've explained everything to you, namely the first call on funds is to stop the club going bust, anything after that can be applied to SCR.

West Ham and Wolves will now have to comply with the same rues as we are.

Their revenue of course will be boosted by the parachute payments they will be receiving and sales of players (£85m received from Spurs for Fernandez for instance).

7 minutes ago, Sluffy said:

See post above.

Exactly the same scenario as we and all the other Championship clubs face.

Fwiw I reckon we could buy a £6m this season if we wanted to (I reckon we have something like £12m in the pot at the moment (see my post -Transfer Gossip page 1928) but it is unlikely that we will because the logic goes something like this.

Preston is an established Championship side, so are looking to improve a on an existing Championship squad so can target a player for £6m knowing that the rest of their squad are good enough to keep them up (maybe even challenge for promotion perhaps?)

We on the other hand need to establish a Championship squad first so not much point spending £6m on a marquee signing if it means the rest of the squad isn't good enough to keep us up.

It might be that FV decides to go all in on year 1 but that would be highly risky and I can't see that happening - you really need to read my post in the Transfer Gossip thread as to understand why that is.

I would normally just copy it and post it up on here but I just get too much shit from everyone about how long my posts are.

Sorry.

So the rules apply less the longer you've spent in the Championship? You haven't answered my question.

16 minutes ago, Lt. Aldo Raine said:

We should get Trafigura to sponsor the Fan Zone or summat

There's something in there about limiting owner sponsorship, so for example Bet365 cannot simply sponsor Stoke for £1bn a season.

1 minute ago, DLH said:

There's something in there about limiting owner sponsorship, so for example Bet365 cannot simply sponsor Stoke for £1bn a season.

Aye, I thought as much

I wasn't being entirely serious

Just now, Cheese said:

So the rules apply less the longer you've spent in the Championship? You haven't answered my question.

No the rules apply just the same over the 3 year period.

I have answered your question in full.

Whether you understood it is a different matter.

As I don't wish to partake in your little games, I wish you a good day.

17 minutes ago, Sluffy said:

No the rules apply just the same over the 3 year period.

I have answered your question in full.

Whether you understood it is a different matter.

As I don't wish to partake in your little games, I wish you a good day.

You haven't. Thanks.

1 hour ago, masi 51 said:

SCR is nothing about trading loss....It is about spending a maximum of 85% of turnover on wages plus a extra say 11m per season

Teams like West Ham, Wolves etc will have both the biggest turnover and losses in the Championship so will be able to buy practically who they wish despite Massive losses each season

Then it becomes an issue of cash flow.

1 hour ago, Cheese said:

Explain how Preston can spend £6M on 1 player, but we can't without breaking the same rules.

We could spend it on one player, we'd just have fuck all to spend on anything else.

1 hour ago, jmjhb said:

We could spend it on one player, we'd just have fuck all to spend on anything else.

Not talking about transfer budgets. How are Preston turning over so much more than us that they can afford to spend 6M on a player, but us doing the same would break SCR rules?