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Management Financial Results - Year Ended 30 June 2022
- Thread starter Spursidol
- Start date
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This seems pretty balanced
Worth the 11 minute watch
Plenty of unanswered questions which we won’t know until the details come out , I’m still a tad confused if the total devaluation or amortization ( that word has popped up a lot of late ) of players like Tanguy are put in as losses in this financial year only or it’s been a yearly thing since his purchase ( he’s only lost value year on year )
Worth the 11 minute watch
Plenty of unanswered questions which we won’t know until the details come out , I’m still a tad confused if the total devaluation or amortization ( that word has popped up a lot of late ) of players like Tanguy are put in as losses in this financial year only or it’s been a yearly thing since his purchase ( he’s only lost value year on year )
Depreciation is very subjective. The stadium will be valued at what we have spent on it. So when we built the old west stand the cost would have been added to the value. Without depreciation that would still be in the figures but it no longer exists. Hopefully it is fully depreciated. How much is the stadium worth? Well to us a lot more than if say the club went bust and the asset had to be sold for say housing. So whilst the depreciation figure turned a profit into a loss it is very necessary to paint a true picture of what an asset is worth.
Players are one of our biggest assets and their value again is written off over the terms of their contract but if they are sold then the profit/loss over the book price is taken immediately.
Neither action is ideal but the best that the experts can agree And better than doing nothing and just writing the value of the player off in the year they leave.
He's an accountant so worth listening to. Unlike the odd self employed plumber on here that thinks they're investment fucning bankers
Why speak generally?
It is real estate loan. And in real estate 8.0 is low leverage.
It reflects that Spurs could pay off the full debt from their pre-amortization profits within 8 years.
For a stadium that is effective for 25+ years and usable for 100 years.
It might occur to you that many of the people commenting on the financial statement release have (long) careers in the financial industry and many of us can actually find our way around an income statement or a balance sheet without the help of a YouTube video.
I haven’t looked at the statement yet but could it be related to transfer fees. I think acquiring the rights for a players contract counts as an intangible asset.
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Thanks. If 'intangible assets' relates to the players, whether exclusively or in part, does that imply we assess our squad to be worth no more than £279M? (source, pg 3 of the same document)
Need more of a breakdown. The business is entertainment with significant real estate assets. If it is a real estate loan, it is not secured against the entire cash flows shown, but rather only the real
estate assets and its related cash flows. The real estate did not generate the EBITDA shown.
As I said earlier, cash flow to debt service is a better indicator. Given the long tenor of the debt, it is probably fine.
Some might, many don't but talk like they do.
I wouldn't trust George Graham with the finances, that's for sure.
He’s a legend and a trophy winner
The cost of players is amortised (similar to depreciation, a term applied to tangible assets, whereas amortisation is applied to intangible assets such as player cost) over the length of the player contract. So as Ndombele was purchased in summer 1999 approximately half of his value will have been amortised in the 3 years to June 2022 (think he was on a 6 year contract).
In addition in Note 10 it says that in year to June 2022, one player cost had an impairment cost of £1.8m applied (ie 'extra amortisation' was applied to reduce his net (of amortisation) cost in the balance sheet. A similar note appeared in the accounts in year to June 21 where two players had a total impairment of £8.5m.
So a total impairment cost of circa £10m recognised over the two years - likely players being Ndombele and Lo Celso.
Given both players together cost circa £120m, it means that after amortisation of 50% of their value plus an extra £10m impairment the joint carrying value of Ndombele and Lo Celso is approximately £50m at 30 June 2022 - and assuming a similar amortisation policy (but no extra impairment) the carrying value for the pair drops to £30m by June 23.
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Most player contracts are paid in equal portions over the length of the player contract.
So £91m will likely reflect some costs for all players bought over the last 5 years or so,
Thanks
If & it’s a fucking big IF regarding Tanguy , he has a great next season … I think he’s contracted until 2025 , does this foreseen loss disappear as his value rockets ?
If we sell him in June 23, we will be a lot better off as it means his wages are off he books (almost certainly we are paying part of his wages on loan at Napoli) , whether we make a bit of money on his sale (versus his carrying value in the accounts) is almost incidental - be great if we do.
And same with Lo Celso.
I’d presume all clubs budget for wages don’t they ?
We did get utterly ripped off with Ndombele but the signs were there if we’d have looked . All that talent but a lazy , stroppy git . I imagine this deal burnt levy bad
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If Carlsburg made financial analysis of football clubs ..... they'd brand it as Swiss Ramble
I think the matchday revenue differences he mentioned here are simply down to the fact we were in Europa Conf and we averaged 25k attendance (that's 35k empty seats - the stadium was more than half empty) a full stadium pulls in £1m per game in food and drink + the ticket prices are way less than CL. Possibly where is that difference game from???
Good to here a new voice about Spurs though, he doesn't seem a cunt.
I am an investment banker who is now a plumber
Daniel Levy is a polyester suit salesman who is now a football club chairman.