1
West Bromwich Albion FC / Report & Accounts to June 2022
« on: April 06, 2023, 01:26:21 AM »
The accounts have been formally posted to the Companies House website
https://find-and-update.company-information.service.gov.uk/company/07230595/filing-history
The operating loss was before player trading was £ 12m this was wholly offset by player sales of £16.9m.
However the auditors plainly forced the club to write down the Smart Wisdom loan as an exceptional item of £5m giving a small operating loss of £116,000 which turned into a profit once interest payments were added in of £171,000.
All rather run of the mill.
Before I go further as far as I can make out no impairment on the book values of Grant and Diangana have not been posted which is interesting.
The issue is going forward is the level of operating loss is unsustainable without
a) External funding
b) Significant player sales.
It is somewhat disconcerting that the club lost in excess of £12m when it's income was at it's peak in the Championship
The parachute payments were worth about £44m last year about £36m this and next year the Championship TV deal and Premier League solidarity payments will be worth £8m.
The wage bill was £42m it is difficult to see how this has been reduced by much this year. As such the operating losses without the exceptional item will be more than £10m.
Hence the comments by the auditors about their concerns as to whether the club could be considered a "going concern"
The Directors plan is
a) External financing via the MDH loan
b) Player sales.
c) Slash the wage bill.
The loan which attracts interest of above 14% is being used to finance the club through the rest of this season. Depending at the rate of burn it might get us through to the start of next season. Providing we raise about £20m in player sales and we slash the wage bill, we make it through to the end of next season.
After that I am really not sure.
There is nothing to feel at all optimistic about this situation.
https://find-and-update.company-information.service.gov.uk/company/07230595/filing-history
The operating loss was before player trading was £ 12m this was wholly offset by player sales of £16.9m.
However the auditors plainly forced the club to write down the Smart Wisdom loan as an exceptional item of £5m giving a small operating loss of £116,000 which turned into a profit once interest payments were added in of £171,000.
All rather run of the mill.
Before I go further as far as I can make out no impairment on the book values of Grant and Diangana have not been posted which is interesting.
The issue is going forward is the level of operating loss is unsustainable without
a) External funding
b) Significant player sales.
It is somewhat disconcerting that the club lost in excess of £12m when it's income was at it's peak in the Championship
The parachute payments were worth about £44m last year about £36m this and next year the Championship TV deal and Premier League solidarity payments will be worth £8m.
The wage bill was £42m it is difficult to see how this has been reduced by much this year. As such the operating losses without the exceptional item will be more than £10m.
Hence the comments by the auditors about their concerns as to whether the club could be considered a "going concern"
The Directors plan is
a) External financing via the MDH loan
b) Player sales.
c) Slash the wage bill.
The loan which attracts interest of above 14% is being used to finance the club through the rest of this season. Depending at the rate of burn it might get us through to the start of next season. Providing we raise about £20m in player sales and we slash the wage bill, we make it through to the end of next season.
After that I am really not sure.
There is nothing to feel at all optimistic about this situation.