Madmax 9,219 Posted November 9, 2012 Share Posted November 9, 2012 Can you please explain it in detail. I mean how can Roman call a company if and when required? What are external debts? And how can a company not be in a company's books but present in company's books. I am not at all a finance guy so i would love if you could just clarify these things. Thanks.When Roman bought the club, he channeled money to the club through a company called Chelsea Limited (name changed to Fordstam later). So the 'debt' people speak of as Chelsea being under is the money loaned by Roman to Fordstam who in turn loaned it to Chelsea PLC (ie company which owns Chelsea Football Club). These loans are interest-free and were converted into equity by Roman a couple of years back (ie he coverted the loan into 'capital'; the money transformed from being money owed to an outsider to money invested by a benefactor). Here's the catch - this happened at the level of Chelsea PLC, but not in the books of Fordstam. That is to say, Chelsea does not owe money to Roman any longer, Fordstam does. Roman still retains the right to ask for his money back from Fordstam any time he wants on giving 18 months' notice. Say tomorrow he wants to sell the club and calls back his money, then Fordstam ( not Chelsea FC) is bound by law to return it within 18 months.Roman Abramovich -> Fordstam (formerly Chelsea Limited) -> Chelsea plc -> Chelsea FC.We've got smart guys running this club.P.S - 'External debts' is a term I used to describe loans owed to 3rd parties like banks. I did so to avoid confusion with loans owed to Fordstam, who is the holding company of Chelsea plc and hence an 'internal' group undertaking. Quote Link to comment Share on other sites More sharing options...
Rmpr 8,977 Posted November 9, 2012 Share Posted November 9, 2012 MOST SUCCESSFUL SEASON SO FAR, LOWEST SPENT IN TRASFERS AND PROFIT!Can somebody explain me how we made profit in transfers?Also, how much money on soft loans do we own Roman? Quote Link to comment Share on other sites More sharing options...
Peppen 934 Posted November 9, 2012 Author Share Posted November 9, 2012 Loads of discussion going on regarding this announcement on Danish forums. Other fans are pretty much rambling about Chelsea using every single technicality available to 'manipulate' this fine profit.Can someone who's decent at economics tell me if anything about this seems suspicious? And it is allowed to turn the intergroup debt into equity in compliance with the FFP regulations? Thanks Quote Link to comment Share on other sites More sharing options...
Beirut_Blues 306 Posted November 9, 2012 Share Posted November 9, 2012 Great news. Quote Link to comment Share on other sites More sharing options...
Superblue 6,372 Posted November 9, 2012 Share Posted November 9, 2012 Loads of discussion going on regarding this announcement on Danish forums. Other fans are pretty much rambling about Chelsea using every single technicality available to 'manipulate' this fine profit.Can someone who's decent at economics tell me if anything about this seems suspicious? And it is allowed to turn the intergroup debt into equity in compliance with the FFP regulations? Thanks I'm an accountant and whilst not well versed with accounting in football clubs, things seem to be above board.Other clubs are just bitter because they thought FFP would fuck us up. They can point to £60m+ spent in the summer but the money is not fully realised within the first year, but over the players contract. Also these new partnerships, etc with Sauber, etc will have not kicked in the accounts just published.Very good start to the weekend - time for City to show their cards now lol! Quote Link to comment Share on other sites More sharing options...
Peppen 934 Posted November 9, 2012 Author Share Posted November 9, 2012 I'm an accountant and whilst not well versed with accounting in football clubs, things seem to be above board.Other clubs are just bitter because they thought FFP would fuck us up. They can point to £60m+ spent in the summer but the money is not fully realised within the first year, but over the players contract. Also these new partnerships, etc with Sauber, etc will have not kicked in the accounts just published.Very good start to the weekend - time for City to show their cards now lol!Cheers mate! I'm also emphasizing the importance of preparations for FFP. And this is one big step on the way. I'm sure the club board is working their ass off to ensure that we are fit and ready for it. Plus, Arsenal are not alone in making a profit now Hahaha, nah, it's great to see this positive development. May it long last! KTBFFH! Quote Link to comment Share on other sites More sharing options...
Superblue 6,372 Posted November 9, 2012 Share Posted November 9, 2012 Cheers mate! I'm also emphasizing the importance of preparations for FFP. And this is one big step on the way. I'm sure the club board is working their ass off to ensure that we are fit and ready for it. Plus, Arsenal are not alone in making a profit now Hahaha, nah, it's great to see this positive development. May it long last! KTBFFH!Am i wrong in thinking there is a new tv deal kicking in from next season for even more money? Quote Link to comment Share on other sites More sharing options...
Peppen 934 Posted November 9, 2012 Author Share Posted November 9, 2012 Am i wrong in thinking there is a new tv deal kicking in from next season for even more money?The TV money tends to increase every year, so I wouldn't be surprised if that would turn out to be the case Quote Link to comment Share on other sites More sharing options...
BlueLyon 9,359 Posted November 9, 2012 Share Posted November 9, 2012 But the most recent summer transfers (Oscar, Hazard, Moses, Azpi and Marin) are not included, are they? Quote Link to comment Share on other sites More sharing options...
Rmpr 8,977 Posted November 9, 2012 Share Posted November 9, 2012 But the most recent summer transfers (Oscar, Hazard, Moses, Azpi and Marin) are not included, are they?No, fiscal year of 2011/2012. Quote Link to comment Share on other sites More sharing options...
Sheva. 5,373 Posted November 9, 2012 Share Posted November 9, 2012 Alex sold for about 5m pounds, Zhirkov was 13-14m pounds. So that's 18-19m pounds, plus whatever their wages were, plus Anelka's wages came off the books. That sounds like 28m to me.And Meireles for about 8m. Quote Link to comment Share on other sites More sharing options...
Superblue 6,372 Posted November 9, 2012 Share Posted November 9, 2012 And Meireles for about 8m.Sold after June.We also sold a few to Hamburg remember. And we also get loan fees on some players. Quote Link to comment Share on other sites More sharing options...
Superblue 6,372 Posted November 9, 2012 Share Posted November 9, 2012 But the most recent summer transfers (Oscar, Hazard, Moses, Azpi and Marin) are not included, are they?No but as said previously the club doesn't take the full hit of transfer fees in just one year. Quote Link to comment Share on other sites More sharing options...
NiclasCFC 2,582 Posted November 9, 2012 Share Posted November 9, 2012 Chelsea proving you can win titles and still manage your Economy!ARE YOU WATCHING ARSENAL? Quote Link to comment Share on other sites More sharing options...
TorontoChelsea 4,064 Posted November 9, 2012 Share Posted November 9, 2012 This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning. Quote Link to comment Share on other sites More sharing options...
mediator 2,026 Posted November 9, 2012 Share Posted November 9, 2012 That' why we shouln't sign falcao and prefer a young striker for the next 10 years. Quote Link to comment Share on other sites More sharing options...
Bosnian Blue 2,471 Posted November 9, 2012 Share Posted November 9, 2012 This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning.It's football, it's a game afterall. That's not something you can predict because anything can happen. Luck is therefore very important in the 'business'. Although I agree about the what could have happened part. Quote Link to comment Share on other sites More sharing options...
robdog 2,084 Posted November 9, 2012 Share Posted November 9, 2012 From soccernet.com today:Their record turnover of 255.7 million pounds ($406.9 million) sees Chelsea leapfrog Arsenal and secure further bragging rights in the capital.so let me get this straight, le arse is ran like a bank & CFC still has a better business model Now that is fuckin' comedy Quote Link to comment Share on other sites More sharing options...
Hutcho 8,443 Posted November 9, 2012 Share Posted November 9, 2012 From soccernet.com today:Their record turnover of 255.7 million pounds ($406.9 million) sees Chelsea leapfrog Arsenal and secure further bragging rights in the capital.so let me get this straight, le arse is ran like a bank & CFC still has a better business model Now that is fuckin' comedy So le arse is ran like a bank & CFC still has a better business modelI am gonna wait til everything in full is released and confirmed but if so that is jokes, and theres gonna be some long old journeys for my arsenal mate, who keeps telling me that we will be bankrupt in a few years lol. Quote Link to comment Share on other sites More sharing options...
Bir_CFC 3,455 Posted November 9, 2012 Share Posted November 9, 2012 166M of debt converted to equity. That's all Roman right there lol. Quote Link to comment Share on other sites More sharing options...
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