Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Maybe one of the few good things to come out of Brexit.
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Possibly, guessing Staprix does it's reporting in Euros which would result in a reduction in asset value for reporting purposes (not quite qualified as an accountant mind...)
Having said that, and this might vary dependng on anyone else's football knowledge, but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Possibly, guessing Staprix does it's reporting in Euros which would result in a reduction in asset value for reporting purposes (not quite qualified as an accountant mind...)
Having said that, and this might be more of a football knowledge than FX knowledge but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
Right. I would also guess his loans to the club would be "costing" less, as for every hundred thousand pounds the club needs to keep it afloat, it will require fewer euros from the (very old) shoebox under his bed.
Is he selling? Yes, he is. He just may not know it yet.
He may have long-term plans for the club, the players, the Academy, the ground, sponsorship, relationships with other clubs... In fact he probably thinks he's not selling, ever. He probably really, really, really tries to convince himself that he's doing the right thing and he's not selling. He probably closes his eyes really, really tight at night and convinces himself that his way really, really, really is what's best, if only everyone else could see it. And he probably tells himself every morning that he's not selling.
But he is. Eventually.
We'll win this battle. However long it takes. He needs to know something important: we haven't even started yet.
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Possibly, guessing Staprix does it's reporting in Euros which would result in a reduction in asset value for reporting purposes (not quite qualified as an accountant mind...)
Having said that, and this might be more of a football knowledge than FX knowledge but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
Right. I would also guess his loans to the club would be "costing" less, as for every hundred thousand pounds the club needs to keep it afloat, it will require fewer euros from the (very old) shoebox under his bed.
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Possibly, guessing Staprix does it's reporting in Euros which would result in a reduction in asset value for reporting purposes (not quite qualified as an accountant mind...)
Having said that, and this might vary dependng on anyone else's football knowledge, but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
That was my rather naive understanding: the asset (CAFC) is now worth less, but the operating costs (and thus the required financial backing) have also scaled down by the same percentage.
If this is the case though; where does this leave the "debt"? Not that it matters to us - as 1 GBP is always going to be 1 GBP here - but does that also get reduced in the Staprix books? It's never going to be increased in our books to match the current EUR value.. surely? If the debt is owed to Staprix, is that debt technically an asset for them, and as such the loss in value is simply written off?
Existing loans will have raised in value, meaning the club is now in more debt (if we owed €40m, that was around £30.5m in June, it's nearly £33.9 now), but future loans will be cheaper as the same £ shortfall will take less € loan to cover.
Existing loans will have raised in value, meaning the club is now in more debt (if we owed €40m, that was around £30.5m in June, it's nearly £33.9 now), but future loans will be cheaper as the same £ shortfall will take less € loan to cover.
Cheers!
So without sounding thick, CAFC owes the GBP equivalent to the sum of EUR that Staprix loaned them? As opposed to simply owing the amount of GBP that they received at that time? If that makes sense!
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Possibly, guessing Staprix does it's reporting in Euros which would result in a reduction in asset value for reporting purposes (not quite qualified as an accountant mind...)
Having said that, and this might vary dependng on anyone else's football knowledge, but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
That was my rather naive understanding: the asset (CAFC) is now worth less, but the operating costs (and thus the required financial backing) have also scaled down by the same percentage.
If this is the case though; where does this leave the "debt"? Not that it matters to us - as 1 GBP is always going to be 1 GBP here - but does that also get reduced in the Staprix books? It's never going to be increased in our books to match the current EUR value.. surely? If the debt is owed to Staprix, is that debt technically an asset for them, and as such the loss in value is simply written off?
This is the interesting thing. From what knowledge I have of the currency rates and accounting I think my first post was wrong. I am sure someone will correct me actually....
Basically I think that the asset value is unchanged, however anything that is denominated in cash form (eg loans) will fluctuate at the end of each period. However the purchase of any previous asset (stadium etc) will be pegged to the value at which it was purchased UNLESS it is revalued, in which case they will state the gain or loss in the P&L...
So unless they revalue it, the only effect is a reduction in their monthly running costs
Existing loans will have raised in value, meaning the club is now in more debt (if we owed €40m, that was around £30.5m in June, it's nearly £33.9 now), but future loans will be cheaper as the same £ shortfall will take less € loan to cover.
Cheers!
So without sounding thick, CAFC owes the GBP equivalent to the sum of EUR that Staprix loaned them? As opposed to simply owing the amount of GBP that they received at that time? If that makes sense!
If I'm honest, I'm not sure, but I imagine it will be whichever Roland chooses, so currently we'll owe the larger figure and he can therefore take larger interest payments. If it was ever in his interests to have us owe the lower figure I'm sure he'd just say we owed him that.
Much like I used to have a mate who contracted for a European bank in London, his pay was either £30 or €40 an hour and he got to choose at the end of each month which of the two he'd like, so he just checked the exchange rates each pay day and took whichever worked out as the higher amount. Pounds increases in value take pounds, pound decreases in value, take Euros.
Looking at this from a business point of view, if he was selling he wouldn't loan players out, especially if we are still paying some of the wages. In my view he would keep the assets at the club as it increases the overall value, or he would sell them and take the profit for his back pocket. So I do not think he is selling any time soon.
If we could sell them we wouldn't loan them.
A player is your asset whether he is at Charlton or on loan. A player doesn't stop becoming your player/asset, because you've lent him to another club.
It depends whether the loans are denominated in pounds or euros. If pounds, there's no effect in CAFCs accounts. I would have thought a Staprix entity would execute the treasury aspects and the currency risk (if not hedged) would belong there.
Duchatelet will make sure he sells Lookman before he goes. I can see Fox leaving before the window, if WHU make an offer for him. Teixera will go. Everyone, Duchatelet can sell he well even Callum Harriott. Duchatelet will then sell up and depart New Year.
There is no rational reason for him to be at the club. He certainly isn't building a squad that could be promoted. Increased losses & a declining league position is the only future under Duchatelet. Whats the point of owning a club that is dieing on its feet ? Utterly deluded & inept, Duchatelet may be but he won't like losing money and will cut his losses. It is inevitable.
There is no rational reason for him to be our owner. We know from people who have known him for years in Belgium that he is not really interested in football but he owns a string of clubs in a number of countries. The regime's decisions on so many vital aspects of running the club defy logic: offloading good proven players such as Morrison on the cheap while spending substantial sums on crap replacements like Sarr, the hiring of a long string of incompetent managers culminating in Karel, the constant obvious lies etc, etc. Therein lies the problem. It seems that reasons the Roland wants to own clubs are not the usual reasons that an owner wants to own a club which is to garner some glory or aggrandishment if that club achieves success on the field. He is a very "strange" individual. It appears that he is out to prove a point which is that there is an alternative way to run football clubs. That is, ultimately, to breakeven without necessarily being successful on the field. I believe the aim is to try a turn us into the Crewe of the South. Smallish passive crowds watching a lower division team which produces some reasonable academy players which can be sold to help subsidise the running of the club. Obviously such a club does not need a 27,000 seater stadium so ultimately parts of that can be sold off, perhaps for housing or turned into other sweatable assets.
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
I did wonder about this as well.
He also is a supporter of Open VLD which is a political party in Belguim and their leader is Guy Verhofstadt who is one of the main supporters the EU and possibly a United States of Europe.
Maybe he might consider selling before Article 50 happens?
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/running ruining a club affected by the exchange rate.)
When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
I did wonder about this as well.
He also is a supporter of Open VLD which is a political party in Belguim and their leader is Guy Verhofstadt who is one of the main supporters the EU and possibly a United States of Europe.
Maybe he might consider selling before Article 50 happens?
Roland taking a long term view against investing in the UK if it leaves the EU is probably a more likely route to his selling the club than anything else, in my view.
At present Charlton are and remain his biggest football asset - so he wouldn't see selling them as an automatic solution to anything. It's true he sold Standard Liege, but that may have been because keeping them at their level (regular Champions League/Europa League contenders) didn't fit with his model of how clubs should be run: IE they cost more than he thinks anyone should spend.
I also think his problem may be when he wants to sell (if he ever does) that there won't be anyone wanting to pay his price.
If RD had any plan to sell The Valley or redevelop The Valley such as a hotel/flats in place of/incorporating the Jimmy Seed Stand. Does it make a difference whether we have 8,000 or 18,000 crowds ?
In other words could our boycott be counter productive ?
Stick in L1, with tiny away crowds. Only 8,000 home crowds, so put the away fans in the lower west like on Saturday & redevelop the Jimmy Seed, reducing the capacity ?
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His car with it's private number plate is parked just outside my office.
Could the pound:euro rate and Brexit affect RD's strategic thinking? Is it reasonable to say the exchange rate would affect the book value of the club in the Staprix accounts? (I realise there are other factors in owning/
runningruining a club affected by the exchange rate.)When he bought Charlton, the pound was worth about 1.22. For most of the last 2 years, it's been worth between 1.27 and .43. In late June 2016, it was 1.31. It's now 1.18. It's the first time it's dipped below the rate at which he bought. Who knows what it will be next year?
Having said that, and this might vary dependng on anyone else's football knowledge, but if all their players are paid in £ their cost base has just dropped, as has the cost of buying UK players....
He may have long-term plans for the club, the players, the Academy, the ground, sponsorship, relationships with other clubs... In fact he probably thinks he's not selling, ever. He probably really, really, really tries to convince himself that he's doing the right thing and he's not selling. He probably closes his eyes really, really tight at night and convinces himself that his way really, really, really is what's best, if only everyone else could see it. And he probably tells himself every morning that he's not selling.
But he is. Eventually.
We'll win this battle. However long it takes. He needs to know something important: we haven't even started yet.
If this is the case though; where does this leave the "debt"? Not that it matters to us - as 1 GBP is always going to be 1 GBP here - but does that also get reduced in the Staprix books? It's never going to be increased in our books to match the current EUR value.. surely? If the debt is owed to Staprix, is that debt technically an asset for them, and as such the loss in value is simply written off?
So without sounding thick, CAFC owes the GBP equivalent to the sum of EUR that Staprix loaned them? As opposed to simply owing the amount of GBP that they received at that time? If that makes sense!
Basically I think that the asset value is unchanged, however anything that is denominated in cash form (eg loans) will fluctuate at the end of each period. However the purchase of any previous asset (stadium etc) will be pegged to the value at which it was purchased UNLESS it is revalued, in which case they will state the gain or loss in the P&L...
So unless they revalue it, the only effect is a reduction in their monthly running costs
Much like I used to have a mate who contracted for a European bank in London, his pay was either £30 or €40 an hour and he got to choose at the end of each month which of the two he'd like, so he just checked the exchange rates each pay day and took whichever worked out as the higher amount. Pounds increases in value take pounds, pound decreases in value, take Euros.
A player is your asset whether he is at Charlton or on loan. A player doesn't stop becoming your player/asset, because you've lent him to another club.
He also is a supporter of Open VLD which is a political party in Belguim and their leader is Guy Verhofstadt who is one of the main supporters the EU and possibly a United States of Europe.
Maybe he might consider selling before Article 50 happens?
;0)
At present Charlton are and remain his biggest football asset - so he wouldn't see selling them as an automatic solution to anything. It's true he sold Standard Liege, but that may have been because keeping them at their level (regular Champions League/Europa League contenders) didn't fit with his model of how clubs should be run: IE they cost more than he thinks anyone should spend.
I also think his problem may be when he wants to sell (if he ever does) that there won't be anyone wanting to pay his price.
At the moment it is merely a hunch but time will tell!
In other words could our boycott be counter productive ?
Stick in L1, with tiny away crowds. Only 8,000 home crowds, so put the away fans in the lower west like on Saturday & redevelop the Jimmy Seed, reducing the capacity ?
I think I'll start a new thread.