[Droitwich Baggie]

Our demise started when Peace sold to this clown.

[paulosull]

Our demise started when Peace sold to this clown.

true but Ebenezer was only in it for himself, couldn’t give a monkey’s about club.

[overseas baggie]

Agreed.

For those who wet themselves thinking about the loss of parachute payments, worry not; the club  only wastes those fees and wages so lack of parachute payments is not going to make much of a difference.

If we had a decent management structure  (DoF?) that did not include the present Recruitment team of Gourlay and Pearce maybe any cash available might have been better spent.

Recruitment has been far better over the past 12 months.  We only seek to really screw up in the transfer market when we pay significant transfer fees.

[baggiejohn]

Agreed.

For those who wet themselves thinking about the loss of parachute payments, worry not; the club  only wastes those fees and wages so lack of parachute payments is not going to make much of a difference.

If we had a decent management structure  (DoF?) that did not include the present Recruitment team of Gourlay and Pearce maybe any cash available might have been better spent.

I think it's fair to say that the last DoF was responsible for almost all of the £37 million spent on questionable transfer fees.

The recruitment structure is irrelevant, it's the job encumbents which are important.

[paulosull]

Read an article in Sunday people about those blue noses and their issues with Chinese owners, this could be us in a couple of years time. Numerous owners who have nearly bankrupted club only way out is to go into receivership which means points deduction and possible relegation.

[leeiswba]

https://twitter.com/kieranmaguire/status/1641424755361234944?s=46&t=HrCvk4z2fduXUe3DzVeeig


The loan he owed us has now been written off in the accounts

[Mikkyk]

So those are the accounts for the year ended June 21, approved in June 22.

Meaning they had already written off the loan in the accounts 9 months ago, yet Gourlay still said it would be repaid 3 months ago, am I missing something?

[gazberg]

Where's Maguire got that info from as not on company house yet. Not saying it's incorrect just curious.

[hardtobeat]

https://twitter.com/kieranmaguire/status/1641424755361234944?s=46&t=HrCvk4z2fduXUe3DzVeeig


The loan he owed us has now been written off in the accounts

It also says Lai has said the loan and accrued interest will be repaid

[johnny Cash]

Where's Maguire got that info from as not on company house yet. Not saying it's incorrect just curious.

Around 3pm the club posted that the 21/22 accounts had been submitted and we made a pre tax profit of £5m.  So they are complete and would suggest a copy has been leaked to KM.

[baggiejohn]

Around 3pm the club posted that the 21/22 accounts had been submitted and we made a pre tax profit of £5m.  So they are complete and would suggest a copies been leaked to KM.

I suspect that writing off the loan as a bad debt will help the WBA tax position, especially since we made a profit of £5 million.

[gazberg]

Around 3pm the club posted that the 21/22 accounts had been submitted and we made a pre tax profit of £5m.  So they are complete and would suggest a copy has been leaked to KM.

Just refreshed on break and see it now. Cheers JC. I was a bit too early before.

[gazberg]

I suspect that writing off the loan as a bad debt will help the WBA tax position, especially since we made a profit of £5 million.

Could you possibly expand on that if you find time John.

I fully expected us to turn a profit but not sure how bad debt relates to tax.


Edit - Are they putting it at nil value/'writing it off' to offset the profit I guess I'm saying

[baggiejohn]

Could you possibly expand on that if you find time John.

I fully expected us to turn a profit but not sure how bad debt relates to tax.

The bad debt will show as a loss in the p and l account, without it we would have shown a profit of £10 million & thus subject to more tax.

Edit   

According to the E & S, the loan has been guaranteed by WBA Holdings, so will still show as an asset in WBAFC Ltd & WBA Group Ltd accounts, but written down as a doubtful debt in holdings accounts.

[gazberg]

The bad debt will show as a loss in the p and l account, without it we would have shown a profit of £10 million & thus subject to more tax.

Edit   

According to the E & S, the loan has been guaranteed by WBA Holdings, so will still show as an asset in WBAFC Ltd & WBA Group Ltd accounts, but written down as a doubtful debt in holdings accounts.

Thank you John. Appreciate it. That is what I was trying to get at in a clumsier way!

[Dan]

What ever happened to the Peace loan that got passed down to Lai? Did that also just get accepted at some point as never being paid back?

[skyclad99]

The bad debt will show as a loss in the p and l account, without it we would have shown a profit of £10 million & thus subject to more tax.

Edit   

According to the E & S, the loan has been guaranteed by WBA Holdings, so will still show as an asset in WBAFC Ltd & WBA Group Ltd accounts, but written down as a doubtful debt in holdings accounts.

I am not from the accounting world John, and I understand you explanation, but I would have thought getting the loan repaid and paying the tax is better for us than just writing £5m off. Our Ron said he was confident that the loan would be paid back 'in some form'. Not sure I like this 'form'.......

[baggiejohn]

Thank you John. Appreciate it. That is what I was trying to get at in a clumsier way!

Another factor that could influence the decision to write off the loan, was FFP.

A club is only allowed to make losses of around £36 million over a 3 year period to meet FFP conditions.
Unless/Until we get promotion, there's a good chance we'll make losses over the next 3 seasons, so it makes sense to write the debt off now.

[skyclad99]

What ever happened to the Peace loan that got passed down to Lai? Did that also just get accepted at some point as never being paid back?

I think it may be part of legal action involving S4A and business boy. I remember reading that there was a None disclosure order in place, so watch this space........ 

[skyclad99]

Another factor that could influence the decision to write off the loan, was FFP.

A club is only allowed to make losses of around £36 million over a 3 year period to meet FFP conditions.
Unless/Until we get promotion, there's a good chance we'll make losses over the next 3 seasons, so it makes sense to write the debt off now.

As we have announced a £5m profit, whats to stop him pulling this party trick off again?

[gazberg]

Another factor that could influence the decision to write off the loan, was FFP.

A club is only allowed to make losses of around £36 million over a 3 year period to meet FFP conditions.
Unless/Until we get promotion, there's a good chance we'll make losses over the next 3 seasons, so it makes sense to write the debt off now.

Thanks for expanding on that.

From pictures of documents doing the rounds on WBA Twitter it seems that they will sell whatever needs to be sold player/asset wise to keep the books black but driving the value of club down at same time.

[baggiejohn]

I am not from the accounting world John, and I understand you explanation, but I would have thought getting the loan repaid and paying the tax is better for us than just writing £5m off. Our Ron said he was confident that the loan would be paid back 'in some form'. Not sure I like this 'form'.......

Ideally, the club wants the money back, but, in my opinion, it's a damage limitation exercise as I said in my conversation with Gaz.

[baggiejohn]

As we have announced a £5m profit, whats to stop him pulling this party trick off again?

There are others on this forum who undestand company governance a lot better than me, but there are question marks about the legality of the loan, both in company law & EFL regulations.

[lewisant]

I’m looking forward to all the mega clever posters coming home so they can explain everything to us in layman terms

[sing on our own]

In layman’s terms, He’s gorrra goooo Tum.