Where has the money gone?

Addick Addict

Including the last Parachute payment, Darren Bent next installment and 8 or so players we would have received money for in the last 6 months (including Reid) I would guesstimate we must have grossed in the region of 15 million.

Please do correct me if I've got it wrong but that seems an awful lot for a Club that's spent less than a million in return. Or have we paying back a few Director's Loans for the previous Manager(s) spending spree?

suzisausage

We would have spent some money in that time on wages, fees owed to other clubs for other players, appearance monies, darren bent money owed elsewhere, other fees payable for loans..... the money gained for players is distorted in the public domain, its not a case of handing over a player and getting a suitcase full of millions. payments are staggered, thats coming in and going out.

the accounts are public knowledge in the annual report which explain a lot of where people think we're sitting on pots of gold.

F-Blocker

For the millionth time - we sold the Darren Bent debt a year ago to get the cash up-front.

The directors' loans were converted to equity.

PeanutsMolloy

Actually the directros loans were converted to Convertible Loans, not equity. There's a big difference. They earn interest on the Conv Loan (a margin over Base Rate) until such time as it is converted to shares and the lenders (not CA PLC) makes the decision whether or not to convert to shares. So, if the Club stays in the CCC it is highly unlikely that the Conv Loans will be converted to shares as the value of the shares will remain low, in which case at some time the loans will have to be repard. If we get promoted and the share price (however that is determined: most likely by a purchase of CA PLC) goee back up the lenders will convert the loan to shares, make a quick turn but in the process heavily diluting existing shareholders.

Addick Addict

Thank you suzi and F-blocker.

This squad is, however, the smallest we've had in living memory. When was the last time we had just two centre backs and a total of six players in total
who can "do a job" at the back?

I suppose I'm looking at the likes of Bristol City who have retained their squad and still spent £2.25 million on Nicky Maynard alone or Forest who spent over £4 million net - and that's without any parachute payment.

razil

problem is mate this topic has been done to death on here, I forget what the subjects were but its been very well covered.

Perhaps some kind soul can direct you to them.

Addick Addict

OK thanks - I shall have to accept that we have become a club run on a shoestring budget and that we have to make the most of it.

Addick Addict

And I look forward to seeing the end of year Accounts with interest.

razil

aye and believe me there are some very critical/enquiring minds on here who have asked the same question, and share your concerns but don't take that as wrote, have a look then tell us what you think.

Bizzarely, the squad deconstruction that has occurred may actually be quite cleansing, its a shame we didn't get our finances sorted last summer however, instead of this boom bust type activity that has occurred.

Addick Addict

razil - I've said it on another thread that I actually think it's great that we've got rid of the highly paid wasters (we all know who they are) and that Pards is putting a squad together of players who want to play for the Club. But how we can go from 12 defenders to 6 a matter of days before the transfer deadline (how would we have done if either Hudson or Fortune been injured pre season?) is a matter for concern.

FFS Welling have got more defenders than that!

Miserableoldgit

Agreed; in a perverse sort of way the cutting down of "the squad" possibly could be the making of Pards and the team this season.
If players out of the side seem totally dissinterested they know where the exit is .
Bailey and Hudson seem (to me) Charlton type players.

razil

agree but its true across most of the squad dude.

Chris_from_Sidcup

Using 1 of your examples - Bristol City. They won't have had a number of players on premiership wages. Up until a few weeks back we were paying Faye and Bent the best part of 50k a week. City who only recently came up from league one, can probably pay most of their first XI with 50k a week. That's where the difference lies. We've had a massively reduced income and have had to make cut backs accordingly whereas they will have increased turnover after their most successful season for years. I believe this season they sold a record number of season tickets, whereas we're going the other way. And despite buying Maynard, who else have they bought in the last year or 2 for a significant fee? No one springs to mind. And they sold Carle to Palace for over a million so their net spend isn't much. Whereas last year we spent over 2m on Varney and 1.5 on Gray and both will be on decent wages. Add to that all the loans we had, and even now Hudson, Ambrose, Holland, Weaver, ZZ who i'd bet all earn more than Bristols top earner.

Addick Addict

Point taken Chris. I do recognise the need to "cut our cloth" accordingly but just hope that this doesn't become an acceptance of our position as potentially a mid table team in the Championship because with a few injuries in Key positions is what we will become. Then the spiral continues, lower crowds and as a result we have to off load anyone who will command a fee (including some very decent youngsters) as well, of course, as losing, imho, a top Manager.

Off_it

[cite]Posted By: Addick Addict[/cite]

This squad is, however, the smallest we've had in living memory.

AA, either I'm dead or that statement isn't entirely true. The jury's currently out as to which it is.

nth_london_addick

Its going to be sunk faster than the titanic this one

repeat debate

in coming

Chris_from_Sidcup

[cite]Posted By: Addick Addict[/cite]Point taken Chris. I do recognise the need to "cut our cloth" accordingly but just hope that this doesn't become an acceptance of our position as potentially a mid table team in the Championship because with a few injuries in Key positions is what we will become. Then the spiral continues, lower crowds and as a result we have to off load anyone who will command a fee (including some very decent youngsters) as well, of course, as losing, imho, a top Manager.

Mate you only need to look at the likes of Southampton, Coventry, Sheff Weds, Leeds, Norwich, Ipswich, Forest as to what happens to clubs who come down and don't go back up by the time the parachute money runs out.
And if we don't go up this year then i'm fairly certain that the likes of Weaver, Ambrose, Hudson and Varney probably won't be here next season.

Oggy Red

The smallest squad in living memory?........... well, I can remember Eddie Firmani's squad of 1967-68, about 16 plus a couple of one match wonder kids.

And more recently, Lennie the Legend's ragbag squad of 1983-84, the season when we were about 5 minutes from oblivion.
He had something like 14 senior Pro's and a bunch of untried kids (including Robert Lee & 'Amos' Stuart)

Finally, 1991-2 when Gritty & Curbs took the reins, they were still 2 playing members of a squad of about 17 Pro's.

nth_london_addick

but we will

CHAMPIONS CHAMPIONS CHAMPIONS

2 year plan phase 2 yr 2


SUPER ALAN PARDEW

razil

did you not see the match on saturday, we are going to storm the league. Where's Rothko when you need him..

;)

Chris_from_Sidcup

[cite]Posted By: razil[/cite]did you not see the match on saturday, we are going to storm the league.

Ha ha yes i did, but i was also at Watford............

Rothko

he's bored, and trying to find out where and when a memorial services is taking place next week.

The game on Saturday was a blur for many reasons, so I can't be arsed with the snark at the moment

bingaddick

We have done this to death elsewhere but it's worth mentioning that Readings John Majeski estimates that relegation has cost £22M. You can assume that Charlton have a similar number to that. One of the main problems the club faced going down were debts of £45m (not net debt) quite a bit of which needed repaying within one year. I am sure the accounts which are due in the autumn will show that figure seriously reduced. The club had to reduce debts so that it can manage the costs of servicing them within a vastly reduced turnover (reducing further next season if we don't go up). At the end of Curbs reign the budget for the football staffing costs was circa £30M, we don't turnover that kind of money now so most of the players on prem contracts had to be culled, it's as simple as that. The people who run the club have stumped up their own cash and there have had to be player sales to keep the club afloat during this period, indeed Richard Murray has said that without this, the club could have gone into administration.

Addick Addict

[cite]Posted By: Addick Addict[/cite]razil - I've said it on another thread that I actually think it's great that we've got rid of the highly paid wasters (we all know who they are) and that Pards is putting a squad together of players who want to play for the Club. But how we can go from 12 defenders to 6 a matter of days before the transfer deadline (how would we have done if either Hudson or Fortune been injured pre season?) is a matter for concern.

FFS Welling have got more defenders than that!

[cite]Posted By: Addick Addict[/cite]Point taken Chris. I do recognise the need to "cut our cloth" accordingly but just hope that this doesn't become an acceptance of our position as potentially a mid table team in the Championship because with a few injuries in Key positions is what we will become. Then the spiral continues, lower crowds and as a result we have to off load anyone who will command a fee (including some very decent youngsters) as well, of course, as losing, imho, a top Manager.

OK I admit it I got Pardew wrong!

It just goes to show how long it takes to "cut your cloth". The irony is that had we gone into Administration two years ago we would probably now be in a better position than we are.

And we do now have the smallest squad of full time pros.

Addick Addict

[cite]Posted By: Off_it[/cite]

[cite]Posted By: Addick Addict[/cite]

This squad is, however, the smallest we've had in living memory.

AA, either I'm dead or that statement isn't entirely true. The jury's currently out as to which it is.

I hope you are still with us Off_It because I make it that, with just over 72 hours to the start of the season, we have a maximum of 13 players available to us who have played more than a couple of hours of League football for anyone in any division. And one of them (Francis) probably isn't fit enough to do so.

Elthamaddick

I'm sure there are other clubs in a similar position..we are alot stronger than I thought we would be!

McLovin

[cite]Posted By: Addick Addict[/cite]
It just goes to show how long it takes to "cut your cloth". The irony is that had we gone into Administration two years ago we would probably now be in a better position than we are.

And we do now have the smallest squad of full time pros.

As [most of] the money is owed to the directors - I've tried to explain this a few times before - we're not going to "go into admin". If they wanted to write the debts off they could without incurring a 10 point penalty. Administration isn't some kind of magic wand that removes debt in return for 10 points. I wish people coud understand that.

It will be interesting to see where the debts sit now with Murray taking over.