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    The price of success

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    RRC
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    The price of success

    Post by RRC on Sun 08 Apr 2018, 3:25 pm

    Here's a short, clear article about Derby's finances --

    The owners of Derby County want to see the club established in the top half of the Premier
    League and are prepared to spend to achieve that objective. They have injected £96m over
    the last two years, including £15.6m this season. The loss of £7.9m in the 2016/17 financial
    year is considered by the Board to be 'of a level of spend and investment that is required in
    order to build a sustainable club in the long term'. However, 'The EFL profit and sustainability
    regulations continue to provide a significant challenge. The Club needs to balance success on
    the field together with the financial imperatives of this regulatory framework.' It is noted that
    'dependency on parent company support is critical to remaining a going concern'.

    read the rest at >> Political Economy of Football



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    MadAmster

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    Re: The price of success

    Post by MadAmster on Sun 08 Apr 2018, 8:47 pm

    £96M in 2 years? What has it gone on?

    Reported losses are nowhere near that amount so what has it gone on?
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    Re: The price of success

    Post by RRC on Sun 08 Apr 2018, 9:10 pm

    MadAmster wrote:£96M in 2 years? What has it gone on?

    Reported losses are nowhere near that amount so what has it gone on?

    Buying out other shareholders? Raising the standards at Moor Farm?
    Paying off directors of this and that, sacked managers and their pals, agents and their pals, etc?

    Spending shed loads of money on a football club is probably quite easy.



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    MadAmster

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    Re: The price of success

    Post by MadAmster on Mon 09 Apr 2018, 8:22 am

    RRC wrote:
    MadAmster wrote:£96M in 2 years? What has it gone on?

    Reported losses are nowhere near that amount so what has it gone on?

    Buying out other shareholders? Raising the standards at Moor Farm?
    Paying off directors of this and that, sacked managers and their pals, agents and their pals, etc?

    Spending shed loads of money on a football club is probably quite easy.

    The last 3 reports have shown losses, IIRC, of 10M, 14M and 8M. Those will include paid off shareholders/players/managers/etc.

    Improvements at Moor Farm will also be in that profit and loss account so where did that other 60M go?
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    bramhallram

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    Re: The price of success

    Post by bramhallram on Mon 09 Apr 2018, 10:34 am

    MadAmster wrote:
    RRC wrote:
    MadAmster wrote:£96M in 2 years? What has it gone on?

    Reported losses are nowhere near that amount so what has it gone on?

    Buying out other shareholders? Raising the standards at Moor Farm?
    Paying off directors of this and that, sacked managers and their pals, agents and their pals, etc?

    Spending shed loads of money on a football club is probably quite easy.

    The last 3 reports have shown losses, IIRC, of 10M, 14M and 8M. Those will include paid off shareholders/players/managers/etc.

    Improvements at Moor Farm will also be in that profit and loss account so where did that other 60M go?

    On our finely-tuned European scouting network ?

    .
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    MadAmster

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    Re: The price of success

    Post by MadAmster on Mon 09 Apr 2018, 11:31 am

    bramhallram wrote:

    On our finely-tuned European scouting network ?

    .

    No Bram, I do it for free Wink
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    valakari

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    Re: The price of success

    Post by valakari on Tue 10 Apr 2018, 12:09 am

    Seems to me we've paid out a lot.. but not a great amount on where is the most important...buying good players. Shed loads wasted that should have been avoided...and i thought we had an astute business man at the helm. He is either not as clever as he would have us think or else he has been badly advised. Either way, too many mistakes.
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    Calif_Ramette

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    Re: The price of success

    Post by Calif_Ramette on Tue 10 Apr 2018, 2:06 am

    Didn't the club have a shed ton of debt when Mel took over and he got rid of it other than the PP mortgage payments?
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    Jackal

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    Re: The price of success

    Post by Jackal on Tue 10 Apr 2018, 4:10 pm

    Calif_Ramette wrote:Didn't the club have a shed ton of debt when Mel took over and he got rid of it other than the PP mortgage payments?
    I thought the ground had been paid off. Dunno
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    Loughborough Ram

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    Re: The price of success

    Post by Loughborough Ram on Tue 10 Apr 2018, 6:49 pm

    Seems to me that talk of £96m debt, a sky high wage bill and having to sell players in the summer has only surfaced since we announced that we were suing our ex CEO for wasting money. Could it be that we are trying to overtly prop up our court case?
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    valakari

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    Re: The price of success

    Post by valakari on Tue 10 Apr 2018, 6:51 pm

    What surprises me is that our CEO (previous), could do anything without Mel rubber stamping it?
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    SawleyRam

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    Re: The price of success

    Post by SawleyRam on Tue 10 Apr 2018, 10:10 pm

    "The operating loss was £23.3m, but this was offset by a profit on player sales of £16.2m, principally those of Jeff Hendrick, Lee Grant, Will Hughes and Tom Ince."

    That paragraph alone tells the tale of where we are financially, A loss of £7.1m which, as we have been told by MM keeps us with the FFP regulations.

    When we see the the net figure of £7.1m it makes better reading than £98m. There is not any question of where has that money gone? That has been money spent (Gross figure) without taking into account what income that money has produced (Net income).

    It's like saying you earn £45,000 a year but you have nothing left where has it all gone? Well first lets take good old tax & insurance off that will be approximately £12,000 taken from that figure before you get a penny so just to quote the gross figure is, shall we say, poetic licence?
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    CornwallRam

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    Re: The price of success

    Post by CornwallRam on Wed 11 Apr 2018, 12:26 am

    I suspect that £96m includes actually buying the club, which was possibly around £50m. Mel has also invested a lot at More Farm and decent chunk at Pride Park (annoying LED floodlights, concourse heating, and distracting digital advertising boards around the pitch and outside the ground, etc.). He also paid off the 'mortgage' ion the ground.

    Also the FFP figure will be lower than £7.1m as spend on infrastructure and the academy are discounted.
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    Calif_Ramette

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    Re: The price of success

    Post by Calif_Ramette on Wed 11 Apr 2018, 2:13 am

    Jackal wrote:
    Calif_Ramette wrote:Didn't the club have a shed ton of debt when Mel took over and he got rid of it other than the PP mortgage payments?
    I thought the ground had been paid off. Dunno

    It seems it has as of 2016. My bad I didn't know that.

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