LFC Accounts Article

[VladimirIlyich]

Saw this article on twitter and thought it was an interesting look at an alternative view of the clubs accounts.

Discuss away.

 

 

http://www.theliverpoolword.com/2013/04/liverpool-f-c-s-recent-accounts-reading-beyond-the-numbers/

[xerxes]

A good article in full.

 

FSG saved us from Administration, we will always be grateful to them for that. Beyond that they are doing a decent holding job, but have made several mistakes.

 

The final para though is wildly optimistic. Top four will not be secured by a few intelligent business deals. It will be won by substantial investment in the team, and stadium.

[Guest San Don]

A good article in full.

 

FSG saved us from Administration, we will always be grateful to them for that. Beyond that they are doing a decent holding job, but have made several mistakes.

 

The final para though is wildly optimistic. Top four will not be secured by a few intelligent business deals. It will be won by substantial investment in the team, and stadium.

 

You're just a 'glass is half empty' arsehole, more like!

[xerxes]

You're just a 'glass is half empty' arsehole, more like!

 

Gee San Don, you're a swell guy (love Tom and John).

[The Woolster]

I'll use this as another chance to plug my own look at the accounts!

 

Wooly Jumpers For Goalposts: Liverpool's Annual Accouts: Will the Reds stay in the red?

 

Our projections are pretty similar, although I didn't bother looking into all the non-cash items, as they are more to do with accounting rules than real life.

[xerxes]

Our projections are pretty similar

 

For me, one element is consitently overlooked.

 

Appreciation in TV money and commercial deals are likely to continue. That is market driven, not an LFC success. Our peers are doing at least as well, and now sometimes better, as everyone enjoys an uplift, some further enhanced by performance success.

 

Having an extra £30m TV money is nice, but if Chelsea, Spurs, Man City/Utd, Arsenal also have at least that the buying power is neutral.

 

A new/redeveloped stadium is one of the few things we can do to steal a march on our competitors.

[beejay]

For me, one element is consitently overlooked.

 

Appreciation in TV money and commercial deals are likely to continue. That is market driven, not an LFC success. Our peers are doing at least as well, and now sometimes better, as everyone enjoys an uplift, some further enhanced by performance success.

 

Having an extra £30m TV money is nice, but if Chelsea, Spurs, Man City/Utd, Arsenal also have at least that the buying power is neutral.

 

A new/redeveloped stadium is one of the few things we can do to steal a march on our competitors.

 

REALLY? Fuck me, I never thought of that.

 

Would you care to elaborate? I'm sure we would all like to know more

[Guest San Don]

Gee San Don, you're a swell guy (love Tom and John).

 

I always knew you had a split personality.

[The Woolster]

For me, one element is consitently overlooked.

 

Appreciation in TV money and commercial deals are likely to continue. That is market driven, not an LFC success. Our peers are doing at least as well, and now sometimes better, as everyone enjoys an uplift, some further enhanced by performance success.

 

Having an extra £30m TV money is nice, but if Chelsea, Spurs, Man City/Utd, Arsenal also have at least that the buying power is neutral.

 

A new/redeveloped stadium is one of the few things we can do to steal a march on our competitors.

 

In terms of the TV deal, everyone is getting an increase, but not of the same magnitude. 50% of the TV money (excl. cash that goes out of the league such as parachute payments) is shared equally. The other 50% is split between merit payments for where you finish in the league, and for amount of times shown live. So teams towards the top who get shown more will be moving further away from the 'smaller' teams, although the teams that finish above us could mover further ahead of us, my guess is that perhaps only Utd get shown more than us live. Also, a lot of the teams below us are struggling financially, so will be using the extra cash to balance the books

 

Then there is the European FFP to consider. Even if they are not as stringent as UEFA say they will be, teams will at least want to be seen to be doing something about it if they are failing the rules, and this will have an effect on both City and Chelsea, although not Utd, City or Spurs.

 

There is also the PL FFP that has recently been agreed which limits the amount that wages can be increased out the TV money to £4m each year. Anything above that has to come from increases to other revenues. I think Utd and Arsenal with their recently agreed sponsorships will gain from this, probably City as well, don't know about Chelsea, but I think our growth in these areas should be stronger than Spurs.

 

And finally, whilst our peers in the PL are all gaining from this our peers in Europe are not, and it will help us when competing against them for the signing of players.

[Tyler Durden]

If we are not successful and wallowing around 6th, 7th and 8th then the likes of the standard chartered deals will dry up fast, that's already been displayed with Addidas not wanting to pay for our kits, although we are still a big kit seller if your not in the big competitions and the big games then you won't get the big money.

 

They have been talking about FFP now for years and it will take years to implement properly if at all, that could be 5-10 years down the road. By that time without either significant investment in the team, Rodgers becoming a world class manager or getting a move on with a stadium build we will continue to fall further behind

[Dr. J]

This caught my eye:

 

While it’s unlikely that Carroll will command a £20M sale price, one way to reduce (and possibly eliminate) the loss on his sale is to swap him with another player(s).

Hatem Ben Arfa (HBA) has been rumored to be the player targeted in Carroll’s partial (or straight) swap .Setting aside the opinions about HBA’s suitability and fitness, LFC has a strong case to argue that HBA’s value is £20M based on his age, average goals and assists per game during the last 3-4 seasons in comparison to say £22M Samir Nasri.

 

I don't know if Ben Arfa is the right player but this type of player swap is much closer to my understanding of what 'money ball' is about. Anybody can go out and spend millions on players but the idea of actually 'trading' them is something you see more in American sport. What if we could get two or even three players/prospects for Carroll?

[Skidfingers McGonical]

Rodgers said this morning he is not interested in Ben Arfa.

 

 

He will sign in August on a Tuesday. IMMINENT!