Last week AFC Bournemouth announced that they had made a £14million profit, after tax, in their recent accounts.
This profit was up from £3.4million the previous year.
However, a change in the accountancy period meant that it only covered an 11 month period and crucially did not include July 2017, a month where AFC Bournemouth would have had large spending on transfer fees, signing on fees and agent costs, as the Cherries signed Nathan Aké and Asmir Begovic from Chelsea for a combined total of around £30million and signed Jermain Defoe on a free transfer from Sunderland.
For example, ‘player registration cost additions for the period were £9.3million, compared with £69.8million in the previous financial period.’
So the hit will come during the following set of accounts.
The Cherries also announced that turnover increased from £87.9million in 2016 to £136.5million in 2017, which was mainly due to both domestic and international television rights.
Whilst staff costs, presumably both playing and non playing, increased from £59.6million in 2016 to £71.5million in 2017.
AFC Bournemouth chief executive Neill Blake told afcb.co.uk…
‘…During the financial year, the club’s focus was to consolidate its position in the Premier League through targeted expenditure on assets and expertise in the playing squad and supporting infrastructure.
“The directors continue to maintain close control over cash flow and have implemented and maintained policies with the aim of ensuring the club is run in a sustainable and successful manner.
“These policies are seen as vital in order to keep control over all expenditure that the club commits to.
“The club is in a more secure position than it ever has been, with significant recent progress made regarding infrastructure and facilities to ensure that it continues to build on its success.”
So what did the users of AFCB Vital think of it all?
Last year we claimed an operating profit of £3.4M…But we owed £48M
This year we are claiming an operating profit £14M but we owe £95M (Not to the exact penny, just rounded down for simplicity)
Brighton owe Bloom £278 million and they arent wetting the bed.
We have no idea what the loans are for, when did we buy Canford, how much did it cost and does it include the £25 million cost of an Academy – we don’t know .
The loan is interest free from the parent company with no repayment date. Surely that’s a good thing.
Let’s try again.
I have 2 bank accounts.
One has £14 in. I am very happy.
The other has a loan of £95 outstanding.
Am I really £14 up?
Very simplistic Al, and it actually shows a complete lack of understanding of business finance, you are putting a household type budgeting slant on things.
Debt is not ‘bad’ per se, the questions that you need to ask yourself are – is the debt serviceable ? Is the lender ‘friendly’ ?
As long as we remain in the premier league I would suggest yes on both counts
The bottom line is, what team ever in history, that has had a tilt at the premier league, has not carried with it a significant level of debt ?
The issue is that you, me and the stadium cat have no idea what constitutes the friendly debt. Its simply listed as a loan.
You’re presuming it doesn’t include any costs towards the academy or ground yet we purchased 57 acres of the Stour Valley.
Are you suggesting its being pissed against the wall ?
Forgive me for being thick here… I don’t understand finances and I never well.
I operate on the model that it’s Max’s football club and he invests his money, in his club, to make it operate better… My understanding is that he cant, and wouldn’t, simply ‘pull out’ as you don’t pull out of your own company… You get bought out… if you want your money that is…?
If the club has loans, then surely they are Max’s loans…? in which case to get any profit from leaving, he would need to sell up lock stock, to someone with equally deep pockets that wants to keep this ride gong and get some of that PL money as well…
Am I being too simplistic…?
After all the years we spent worrying about the future of afcb, I really do get why Al has concerns.
However, we have now surpassed any level where it is worth us worrying about. Irrespective of personalities, the next owner (if that happens) will either be mega wealthy or we’ll be stone broke.
We’re talking about Max here, but the Americans are also on board, so maybe the financial risk is spread.
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