ThePromisedLand
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(05-03-2021, 04:03 PM)Strawberry Avenger Wrote: It's not difficult. But it is refreshing and noteworthy. Because for most of the last 20 years we were run poorly. There can be a sense of inevitability about that. You can have some in the press having a pop at the current owners but I can see we've moved on from letting players leave for nothing or over spending our way into FFP punishment.
It's a question of competency. And the current ownership are savvy on the financial aspect. They have legacy of a Jewel in the Crown in Olympiacos. They, ultimately, do know what they're doing even if some of that has been lost in translation from Greece to the Championship.
So when I feel hard done to re: losing to bl**dy Luton, I look at the bigger picture, for news like this. (It was a goal scored from a toe flip past three Forest players who should have known better. That's the nature of the Championship, though. If you don't take your chances.) Forest were so far behind they were rotting off and on the pitch. It's clear that it's taken several years just to get to this point. A mid-table side (which had over achieved off the back of Grabban and Lolley's goals atop the Talismanic Sow fulcrum.)
Sooner or later recruitment, having the right manager installed (eg. Chris), a real pre-season (will it happen?) and the right playing personal will follow (a promising Jan' but it's going to take more than 3-5 players this Summer.)
Hopefully the reduction of £20 million of debt, letting go of the '11' players this Summer (out of contractors...) and off loading saleable assets to raise another £8-10 million will mean Hughton can sweep clean a patchwork squad of the previous couple of managers who either feel homesick, don't have the bottle, don't buy into what Hughton's doing or just aren't good enough and bring in robust players over the Summer with leadership, industry, (bit of pace), athleticism, competency and a smile.
SA.
We live in eternal hope...
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(05-03-2021, 03:49 PM)Strawberry Avenger Wrote: (05-03-2021, 03:45 PM)Paplane Wrote: Dont want to pee on this love-in but isn't this just standard ffp compliance stuff? As I understand it, the club is allowed to make an aggregate loss over 3 years (£39m?) but any loss over £5m per year (??) has to be converted into shares by the owner so that the club is not burdened with long term debt. I think that's the way it works.
I'd hardly call reduction of £20 million a 'love in.'
It is what it is.
'Great news.' It shows our club is being run reasonably well off the pitch. Instead of car-crashing into FFP under previous regimes.
SA.
My point is, he's not doing this as a generous gesture, he's doing it because he's got to. It's part of owning an ffp compliant championship club. You run at huge losses and then have to convert those losses into equity, meaning when you eventually walk away, you sustain the loss, not the club. It's the best part of ffp. It safeguards the club from dodgy owners (to a certain extent).
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The fact is though Pap, that EM would've known about that before he took over ownership, so its still a really good piece of news no matter how it is presented
"It's Tricky to rock a rhyme, to rock a rhyme that's right on time, it's Trickay, It's Tricky, Tricky, Tricky Tricky" - Run DMC
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He could've covered it with a loan though rather than converting it to equity. By doing this he is officially accepting the money is a write off. Whatever happens a 20m loan is still a big amount.
Will be the case for all champ clubs but it shouldn't be underestimated how much they have to contribute each year just for operating losses
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Very good news for bean counters and also demonstrates EMs continued commitment to Forest.
However, my understanding is (and please correct me if I have it wrong) that it does not impact on FFP either way.
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(05-03-2021, 04:30 PM)Tricky Wrote: The fact is though Pap, that EM would've known about that before he took over ownership, so its still a really good piece of news no matter how it is presented
Don't get me wrong Sniff, I'm not doubting the man's commitment. I'm just saying this isnt some sudden injection of new money.
I think he's a fine owner who's prepared to lose a lot of cash on us. We're luck to have him imo. Fawaz could've sold out to a Chansiri, and people of that ilk, or the likes of Derby's non existent sheikh, or some venture capitalist outfit like the people who've just taken Burnley. EM's a football man, and he's wealthy enough to sustain us. What's not to like?
Also, I think people forget the size of the cheques the man writes for us. Seeing this in black and white brings it home, hopefully.
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(05-03-2021, 05:24 PM)zicorice Wrote: Very good news for bean counters and also demonstrates EMs continued commitment to Forest.
However, my understanding is (and please correct me if I have it wrong) that it does not impact on FFP either way.
You are correct, it's really just a cosmetic accounting thing. Rather than leaving the money as a loan its converted to equity so the debt isn't on the balance sheet. In practise it makes no difference unless he was trying to sell the club.
Nevertheless, a positive sign to show his commitment long term and its good for non finance people to see it in action. Might hit home a bit more how much he's committing!
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(05-03-2021, 08:23 PM)wassy04 Wrote: (05-03-2021, 05:24 PM)zicorice Wrote: Very good news for bean counters and also demonstrates EMs continued commitment to Forest.
However, my understanding is (and please correct me if I have it wrong) that it does not impact on FFP either way.
You are correct, it's really just a cosmetic accounting thing. Rather than leaving the money as a loan its converted to equity so the debt isn't on the balance sheet. In practise it makes no difference unless he was trying to sell the club.
Nevertheless, a positive sign to show his commitment long term and its good for non finance people to see it in action. Might hit home a bit more how much he's committing!
Yes, the main take home is that it's a long term move, showing commitment, as he's writing off money he could demand be returned to him today, in return for the prospect of a greater return for the club at some undetermined point in the future.
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Well done EM. I have heard a few fans saying that he had lost interest but this move clearly puts an end to those rumours.
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(06-03-2021, 07:58 AM)Jasper Scarrott Wrote: Well done EM. I have heard a few fans saying that he had lost interest but this move clearly puts an end to those rumours.
Yes, no way he's losing interest. On the contrary.
Panic on the streets of Croydon, Derby, Sheffield, Leicestershire.
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I believe converting loans to equity is a fairly standard ploy but I agree it confirms EMs commitment, not that I doubted it.
For what its worth the Supporters Trust say they will publish an independent analysis of our financial state which may shed some light. Presumably this is to deflect a little of the criticism that has come their way following the exclusive Q&A session they promised they would hold with the owners that never happened.
ThePromisedLand
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(06-03-2021, 11:20 AM)Salvatore Matrecano Wrote: I believe converting loans to equity is a fairly standard ploy but I agree it confirms EMs commitment, not that I doubted it.
For what its worth the Supporters Trust say they will publish an independent analysis of our financial state which may shed some light. Presumably this is to deflect a little of the criticism that has come their way following the exclusive Q&A session they promised they would hold with the owners that never happened.
If it’s the Trust I would doubt the ‘independence’ of any analysis.
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