Santi wrote:No, was in response to UFGN. They can't just make huge reserves appear out of thin air for the reports.
They kinda can, as long as they own the money somewhere within the business or parent company
by UFGN » Sun Jan 13, 2019 1:59 pm
Santi wrote:No, was in response to UFGN. They can't just make huge reserves appear out of thin air for the reports.
by BexleyGooner » Sun Jan 13, 2019 2:04 pm
by Highbury Hillbilly » Sun Jan 13, 2019 2:04 pm
Luzh 22 wrote:Despite predicted loses, the club still (unless SK has taken it away) has cash reserves of nearly £300m. The issue (perceived) is that the club is at the Premier league FFP wage cap, and can't recruit anyone new until they have freed up some of that.
Dead wood needs to be got rid of, so too do overpaid good players.
by Santi » Sun Jan 13, 2019 2:09 pm
UFGN wrote:Santi wrote:No, was in response to UFGN. They can't just make huge reserves appear out of thin air for the reports.
They kinda can, as long as they own the money somewhere within the business or parent company
by UFGN » Sun Jan 13, 2019 2:14 pm
Santi wrote:UFGN wrote:Santi wrote:No, was in response to UFGN. They can't just make huge reserves appear out of thin air for the reports.
They kinda can, as long as they own the money somewhere within the business or parent company
Well exactly, if you wanted to put 30 grand in your bank right now and show it off to someone, you'd have to get it from somewhere. Rapid fire sale of assets, change down the back of the sofa or consolidate funds you already have into 1 account.
Either way you have to actually obtain that money and the auditors would see exactly how it was obtained and where it came from, that's their job.
Arsenal must have a big f***ing couch.
by Santi » Sun Jan 13, 2019 2:41 pm
by CynicalGooner » Sun Jan 13, 2019 4:03 pm
by PairyGrows » Sun Jan 13, 2019 5:03 pm
BexleyGooner wrote:Sorry, but actually lol’d at the mention of financial crisis. Some fans are deluded or very entitled if they think this is a financial crisis. It’s nothing of the sort. It’s a sticky patch brought on by lower income and bad management, but it’s nowhere near a crisis.
Once the deadwood start getting cleared, the new sponsorships come in and the wage cap rises, things will start rolling again. A financial crisis is something that imo, threatens the mere existence of a football club. I’m sure this club will still be here long after we’re all dead and buried.
by Waterfordgooner » Sun Jan 13, 2019 5:11 pm
by Angelito » Sun Jan 13, 2019 6:20 pm
by Marsbar100 » Sun Jan 13, 2019 6:22 pm
by PairyGrows » Sun Jan 13, 2019 7:02 pm
Luzh 22 wrote:PairyGrows wrote:I'm not convinced we have cash reserves of £300m lying around somewhere. Where's this coming from? None of the financial figures I've seen indicate anything remotely like this. Granted, we won't know anything concrete about Arsenal's finances anymore since Kroenke wants to disclose as little as possible as late as possible.
Getting rid of our best players is simply not a tenable solution. If we get rid of our best players, we'll have to replace them with inferior players, further lowering the competitiveness of the squad. Unless our recruitment is perfect (a la Leicester), our squad is going to be less competitive and thus less likely to challenge the other top six sides.
It's all there in previous financial reports if you care to go through them. Unless SK has taken cash out of the club, it's still there, as there have not been any operating loses yet...
by EliteKiller » Sun Jan 13, 2019 10:50 pm
PairyGrows wrote:How much are we realistically going to get from clearing out the deadwood? Realistically £10-20m, which is a pittance. Also, our wage structure will skew the wage demands of the incoming players, meaning we won't be able to cut the wage bill by a lot. If anything, the wage bill may grow still.
Also, the new sponsorship deals won't bring in enough to make a difference. The only new sponsorship deal I'm aware of is the Adidas deal, and that's going to bring in about £30m more. Even if we spend it all (which is unlikely), I'm afraid we won't have a huge transfer budget.
by PairyGrows » Mon Jan 14, 2019 12:20 am
by Zedie » Mon Jan 14, 2019 12:54 am
PairyGrows wrote:I can't help feeling there are a few misuderstandings about what I'm trying to argue. I'll try to address them to the best of my ability.
Offloading the deadwood won't guarantee a better wage structure. The incoming players will base their wage demands on the wages we're currently paying, which likely means we'll have to pay over the odds a bit. Also, even if the wage cap won't prove a hindrance, we'll still have to make a profit.
Also, it's incredibly difficult to grow the revenue in the short term. Broadcast revenue is less lucrative for the Europa League, and commercial income is inflexible. The only way to make more money quickly is to crank up the ticket prices. For obvious reasons, that option is out of question.
Even though we're worth £2bn, the reality is that our self-sufficient model (which won't change according to the club) coupled with plummeting revenues and soaring wages mean we're in serious trouble.