Watford Finances Update...

Discussion in 'The Hornets' Nest - Watford Chat' started by Burnsy, Oct 11, 2019.

  1. Burnsy

    Burnsy Squad Player


    Can anyone who is more in tune with football finances shed some light on what this means?

    Seems we have settled a big loan made to the club and done some restructuring - some (probably wild) speculation it could be in preparation for some changes at the top?!
  2. The undeniable truth

    The undeniable truth Squad Player

    From the info that is publicly available at the moment you really can't tell. The comments below the tweet really sum it up. Could be just routine, could be replacing one loan with another, could be changing company rules to allow them to take out a different type of funding, could be the start of a restructure, really could be anything or next to nothing.
    Hope that helps :).
  3. Davidmsawyer

    Davidmsawyer Statto Statto Statto

    I think that clears it up!
    Happy bunny likes this.
  4. wfc4ever

    wfc4ever First Team Captain

    Pretty much all up in the air as we will lose money if we go down .
  5. Burnsy

    Burnsy Squad Player

  6. We hate 48

    We hate 48 Reservist


    The link has background-I think this latest news for the parent company -who has the debt but lends it to its subsidiary (the football club) -means that the £55m loan from XXIII Capital is being repaid (and its security is released) and in turn the the club is using an invoice discounting facility from Barclays secured against the revenue from the Premier League

    Summary- One debt is replaced by another debt but with a difference that if relegated the amount we can borrow will reduce (a lot)-that seems a more sensible route than a loan which has to be paid whatever your revenue is. Of course another view might be that you can borrow more against the PL revenue now to spend in January on players (defenders) so you don't experience relegation !
    miked2006, Klein Lust, zztop and 3 others like this.
  7. zztop

    zztop Eurovision Winner 2015

    All this makes me nervous.
  8. SkylaRose

    SkylaRose Reservist

    Wow, so even top dogs who run the club finances are preparing for relegation. Well, at least we know in advance. According to a source which I cannot confirm is true - latterly a person I work with says the Esso bloke told him sort of source. Our biggest earners have 'buy out clauses' in their contracts if we are relegated? Cannot confirm this as true, but I am guessing if they wanted out - we could off load them at a lower rate and pay out what was left on the current contract?

    Can somebody who understands update? Thanks x
  9. Happy bunny

    Happy bunny Cheered up a bit

    The bloke at Morrisons filling station says nothing to worry about. There again, Esso let him go do what does he know?
    Lincshornet and SkylaRose like this.
  10. Burnsy

    Burnsy Squad Player

    If we go down and the biggest earners want out, then it’s no concern. They are struggling to be motivated in the PL, they would down any tools they have left in the Championship. I’d be more concerned if they stayed on to be quite honest. Some particular players we have give the impression they need a certain level of PL football to be motivated.
    SkylaRose likes this.
  11. SkylaRose

    SkylaRose Reservist

    Agree. Can I also add to that, if motivation to that level really is true, they are doing themselves absolutely no favours by downing tools already. They "want" a higher level", so I am guessing a top six club. But if they cannot string passes together at another Premiership Club (a.k.a Watford FC) - then what chance do they have of any bigger club even taking a vaige interest in them? Doucoure' motivation has never been the same since the PSG speculation - just a true fact on what you already said.
  12. HELGO

    HELGO Reservist

    But Scott said we are looking to improve every season and wanted to be top 10. How can you possibly be nervous, apparently they’ve got everything under control!
  13. zztop

    zztop Eurovision Winner 2015

    I am under control. What a daft thing to say.
  14. Aberdeen

    Aberdeen Academy Graduate

    Too little information there to enable anyone to know what is going on.
    However a company that was considering a sale that had large debts might first want to write those off to enhance a sale price and avoid putting off buyers. If the Pozzos converted their loan into equity or even just wrote it off then it would make no difference to them provided they got it back in the price. A company with little or no debt would look more attractive.
    There could be lots of other reasons for what they are doing - or even perhaps what they are doing is not what it seems.
    Would not surprise me though if the Pozzos were looking ahead to a possible relegation and trying to create the best structure they could.
  15. Norwayhornet

    Norwayhornet Squad Player

    Hopefully the mega rich Saudi prince (cousin that owns man city ) that was interested in Newcastle , might buy us instead !
    Back down to reality probably trying to raise finance to panic buy in January to try to keep us up ,or more sensibly preparing the club's finances for relegation.
  16. Norwayhornet

    Norwayhornet Squad Player

    Hello Aberdeen, is that you GF?
  17. Aberdeen

    Aberdeen Academy Graduate

    I do not understand that. What is GF?
  18. Norwayhornet

    Norwayhornet Squad Player

    Initials of a keen Hornet I knew that lived or still lives in Aberdeenshire.
  19. Aberdeen

    Aberdeen Academy Graduate

    Sorry - no - not me I'm afraid. Are you in Norway - connected with the oil industry ?
  20. Klein Lust

    Klein Lust Academy Graduate

    Which of our players would be the higher earners and have a buy out clause in their contract? Does this mean they'd be put for sale to the highest offer kinda thing?
  21. IRB

    IRB THe artist formally know as ImRonBurgundy?

    Ponzos sell up

    Watford bought up by rich consortium

    We finally splash the cash on Walcott and Le Fondre
  22. With A Smile

    With A Smile First Team

    I'm sure that its more along the lines that every good company operates on loans, a simple reason is that you pay tax on income, but not on a loan

    It means that the holding company pay tax on the income, but they make a loss, reducing that payment
    The football club reduce their tax bill by using the loan as their income

    Pretty standard
  23. We hate 48

    We hate 48 Reservist

    A company pays tax on profits not on income. Interest on a loan reduces your profits so if you would otherwise make a profit the interest on the loan does reduce your tax bill. Unfortunately the club did not make a profit in the last year-it made a £30m loss so the interest of £5m it paid only increased that loss and had no benefit whatsoever as far as i can see.

    We have loans to enable us to buy players as we don't make enough profit to buy them for cash.
  24. Jumbolina

    Jumbolina First Team

    Eh? We use loans because we don’t have enough income to cover our transfer fees? Unless we make profits on sales the club loses money.
  25. Jumbolina

    Jumbolina First Team

    Indeed. We also have 53 million in tax losses to carry forwards!
  26. folkestone orn

    folkestone orn Reservist

    And terminate Hoggs lone innit.
  27. Cassetti's Beard

    Cassetti's Beard First Team

    U wot fam?
  28. The undeniable truth

    The undeniable truth Squad Player

    Will tear up the championship next season.
  29. AndrewH63

    AndrewH63 Reservist

    I see the press are reporting that Wolves have taken out a £50 million loan to cover operational costs - and they apparently have mega wealthy owners. I profess to know little of football financing, but it makes our loans look more typical.
    LaClusazSki likes this.
  30. tonycotonstache

    tonycotonstache Reservist

    I heard we are going all in on Billy Sharp
  31. LaClusazSki

    LaClusazSki First Year Pro

    Is it not so that the Wolves holding company is in some financial trouble?
  32. Sort of OK

    Sort of OK First Year Pro

    Jean-Luc Picard, celeb forumites! Thought you were Udders?
  33. NW Orn

    NW Orn First Year Pro

    Fosun the Wolves owners will have lost £Ms on the Thomas Cook administration as they were the biggest shareholders.
  34. RS2

    RS2 Academy Graduate

    They'll be fine, expect more Portuguese players coming in for knockdown prices.

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