Love to see it.
They are the cunts we accuse them of being.
How much of the Nico payoff will go to us to settle the Coutinho account?
Football Finance
- Thread starter King Binny
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Love to see it.
They are the cunts we accuse them of being.
How much of the Nico payoff will go to us to settle the Coutinho account?
@Beamrider I hope you don't mind me asking and you don't mind answering...
The Dynasty Capital bought a small %of the club, where did that money go? I hear it was much as £160m? I thought it would be used to take all the intra company debt off the books. However, when I google, its shows the club still owes £70m to FSG. If you include intracompany debt and external debt, where does the club stand? With 3 windows of net 0 spending, in you're opinion does that mitigate the loss made when we didn't qualify for the CL?
The Dynasty Capital bought a small %of the club, where did that money go? I hear it was much as £160m? I thought it would be used to take all the intra company debt off the books. However, when I google, its shows the club still owes £70m to FSG. If you include intracompany debt and external debt, where does the club stand? With 3 windows of net 0 spending, in you're opinion does that mitigate the loss made when we didn't qualify for the CL?
At the time (September 2023), the Dynasty investment was described as a minority investment in LFC (i.e. NOT in FSG, just us). The club's official website stated that "The minority investment will primarily be used to pay down bank debt incurred during the COVID-19 pandemic and capital expenses made to enhance Anfield, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window."
I don't dispute any of that.
The rumoured range of investment was between £64m and £128m - I'm guessing this is something dollar-related and the description of the investment may imply that range in US finance speak. I say that because it's a wide, but quite specific, range of values.
Bear in mind that the debt figures you mentioned are from the May 2023 accounts - so most of the capital expenditure had been spent, other than finalising Annie Road (although there could have been £20m+ still to spend to finish that project as the expenditure is often end-loaded into the close season and the contractor had gone bust).
The debt to FSG is, I believe, the residual debt from the Main Stand and we've not repaid any of that since 2020. If there is surplus cash on hand, they'll repay some of it, but if there is a need for investment in the club then they'll leave it outstanding.
The club's net debt per accounts at 31 May 2023 was £145m (£71.4m FSG, £87.1m bank, less £13.5m cash). The bank debt is typically quite low at the end of May as season ticket money for the following year has been collected. Over summer, the club still incurs most of its normal costs (wages and overheads) but there is not much match-related income. We will bill most of our sponsorship / partnership revenue for the following season to be paid in June so we can cover those costs - obviously the shirt sponsorship / kit deals will be chunky numbers.
The summer 2023 transfer window saw us sell Hendo and Fabinho, and buy Mac, Szob, Gravy and Endo. Given that Mac and Szob were on release fees, it's possible we would have had to pay the whole fee up-front, rather than just 1/3. That means in cash terms we may have paid out an extra c. £60m for them compared to a normal window (but then we'll have paid £30m less last summer and won't have a £30m payment due this summer either). That would have put a strain on bank facilities in 2023 and was probably what drove the Dynasty deal.
So Dynasty should have cured the shortfall in Autumn 2023, and we should now have more scope for outlay.
BUT - the Dynasty investment ought to have gone into LFC as a share injection. And if it had done, we should have made a filing with Companies House to record the share issue. We haven't done so. Nor has our holding company (UKSV Holdings). And neither company has recorded Dynasty as a shareholder. It's possible the Dynasty investment came in a level above (UKSV I LLC, a US company) but US companies don't publish their accounts publicly so I can't tell.
It's also possible that the club just forgot to file the relevant paperwork, and I genuinely would't rule that out.
Finally, with regards to the loss we will have made in 2024, I really don't think it will be that big a number. My best guess would be £30-40m. We will know soon as the club needs to file its accounts by 28 February.
But in summary, I think the main things holding us back from spending at the moment are the need to resolve the contract three and / or that the players we want / need aren't available and we're not going to settle for 2nd choices.
I don't think it's for a lack of money to spend, and I don't think there is some kind of financial conspiracy going on under our noses.
