11 Sep 2024 22:43:12
Well, massive loss but the club believes it will stay within PSR rules. Making a profit in the year to 30/ 6/ 25 on what are projected to be the same revenues will require a tremendous turnaround. I don't know the ins ad outs of it but hopefully with a significantly lower wage bill and some decent profits on player sales over the summer, it can be done. Maybe it will need a couple more departures over the winter window. But, as unfortunate as it is, one can see why they have been somewhat draconian when it comes to non-football redundancies. I had been concerned that the Glazers and their inept appointees might drive us into bankruptcy, with fines and point deductions for PSR violations, and further debt accumulation.
12 Sep 2024 09:16:34
Thank god we now have people in control who are special-ists in their fields…a few more years of the glazer cronies in control and who knows where we would have ended up. Tough decisions being made but they are a necessary evil to turn this ship around. Hopefully some success on the pitch can help with our finances and increase revenues.
12 Sep 2024 10:13:29
Wow, a number of takeaways from this.
EBITDA was $192.7m - Sir Jim bought in at $1.6bn for 27.7% giving a valuation of $5.7bn. Thus a multiplier of about 29.6x. This is big money for a loss making company.
The main point of interest (pun intended) for me is : Total current borrowings including accrued interest payable was £35.6 million. At 30 June 2023, the outstanding balance of the revolving credit facility was £100.0 million and current borrowings including accrued interest payable was £106.0 million. Giving a total of interest payable of £141.6m. So again, its the debt that is the burden.
Some interesting details on the operating cost savings from the 250 redundancies. Cost savings of approximately £40 million to £45 million, before implementation costs of £10 million. So approx. £30m net. This shows there was way too much fat on the company and it was not being run efficiently.
My take away from the numbers are:
1) Debt cost is higher than the loss
2) Saving £30m operational costs shows poor historical management.
3) Don't be surprised to see the big earners being pushed out the club in he summer.
4) As fans our best option in the future would be Sir Jim securing a deal for the remaining shares on some sort of debt free cash free basis. This is however unlikely given the company is publicly listed.
4)
12 Sep 2024 15:37:58
Some good points there Rewz, we must not forget that there is certain expenditure that is not included, for the purpose of PSR, such as investment in infrastructure, the academy and women's team.
There was also a one off cost of £47.8 million relating to the Strategic Review which ultimately led to SJR partial buyout.
SJR has also committed to investing 300m dollars by the end of this calendar year, 200m already in so a further 100m to come, with work started on the £50m redevelopment at Carrington.
13 Sep 2024 06:04:35
IwOTB
That’s the £47.8m charge the Glazers applied to the club books to enable them to receive £1.2Bn for the shares from SJR. Strategic Review may be the official title but the club is £47.8m worse off because of the Glazers. All above board so just for clarity that we still have the Glazers as majority owners and still to be got out of the club yet.