Bolton's Finances / Accounts for year ending 30th June 2021 and everything else since.

Where were we? Oh yes, did it make sense for the Famous FiVe to Go Adventuring Again in agreeing to pay £28.5million for Bolton Wanderers? Would they have a Wonderful Time, a Mystery to Solve or Get into a Fix?

They haven't actually paid £28.5m yet but they have certainly fixed a few things and wangled a few as well, as you might say.

They've wangled at least £2.5m in COVID loans, wangled EDT out of half it's agreed debt and then wangled their way out of repaying the government backed loan and all the interest on it. They may still be hoping that they can wangle their way out of about £2million interest charges on the PBP loan.

Did they come up with the dosh last Monday? Ask Marc Iles, he'll know.

So what did FV hope to get for their money?

Well there was an impressive stadium for starters, a hotel, a training ground, some land ripe for development and  potential for further land development around the stadium. This little lot had previously cost over £40m and that's not counting the 'intellectual property'. That's worth another £10million. Well that's what FV's audited accounts say!
 
Interesting that the Reebok Stadium appears in FV's audited accounts at £3m. That's less than Morecambe's Mazuma Stadium! Have any of you ever been to Morecambe? Sharon has.
P.S. Less than Fleetwood too by the look of it.

Interesting point you've picked up there Bob, one I never would have.

One thing that crossed my mind when looking at it and comparing these latest accounts with the ones previous is that I don't seem to see any amortisation (depreciation) on the value of the stadium (is this normal practise?) but I do notice 10% is deducted annually for goodwill.

Would there have been any tangible benefit to FV in understating the stadium value and overstating goodwill (assuming that is legal) as it would certainly help to reduce the headline losses (or increase the headline profits) on reporting of the end of year accounts?

Sluffy wrote:Interesting point you've picked up there Bob, one I never would have.

One thing that crossed my mind when looking at it and comparing these latest accounts with the ones previous is that I don't seem to see any amortisation (depreciation) on the value of the stadium (is this normal practise?) but I do notice 10% is deducted annually for goodwill.

Would there have been any tangible benefit to FV in understating the stadium value and overstating goodwill (assuming that is legal) as it would certainly help to reduce the headline losses (or increase the headline profits) on reporting of the end of year accounts?

I'm not sure which point you mean, Sluffy, but thanks anyway.

It is standard practice to depreciate buildings (but not the land they stand on) over their expected useful lives. 50 years would be typical and that's what FV are doing with the 'bricks and mortar' element allocated out of the overall £28.5million agreed total cost of the assets (a sum well short of the amounts paid by the last but one owner, of course).

Directors are legally obliged to account for these things in a way that is 'true and fair'. Opinions may differ on what is 'true and fair'. Some folk, for example, might be surprised that it would be 'true and fair' to value the Reebok Stadium at less than Morecambe's Mazuma Stadium.

Goodwill is also amortised over its expected useful life. Ten years, as applied by FV, would normally be regarded as the maximum.

FV have also decided that the 'intellectual property' is worth £10million and that it will last for 50 years.


Is there any advantage to be gained by minimising depreciation or amortisation charges? In short, yes.

Thanks Bob.

I now know what I did on my previous post was to confuse myself by misunderstanding the line on the original accounts Tangible Fixed Assets (page 27 - 30 of 37) which states 'The company has no Tangible Fixed Assets at 30th June 2020', which I read that something I did not understand accounting wise had happened with the accounting of the stadium from then on hence no depreciations on them(?).

With the help of your reply to me I know see that what the line actually meant was that FVW Ltd itself held no fixed assets but its group of companies did! Meaning that that the depreciation will be being shown on FVWL Football Ltd and FVWL Hotel Ltd's accounts - and consolidated into future FV holding accounts which no doubt will continue to report that the future year ends for FV Ltd will not hold tangible assets at year ends either.

Thank you for clearing up my confusion on this.

Glad we've cleared that up, Sluffy.

I thought you might be interested in why Morecambe's Mazuma is worth more than the Reebok and why the 'intellectual property' is worth a lot more than both put together. That's what FV are saying and its Sharon that signed off the accounts.

Why are we worrying about inflation, energy costs and Russian plans to create an empire from Dublin to Vladivostok when there are infinitely more pressing things to be doing?

We only have until lunchtime today to prevent armageddon. If we don't act now we will have lost a once-in-a lifetime's chance to help select BWFC's kit for next season.

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Who writes this stuff?

Bob, that link takes me to my own inbox.

boltonbonce wrote:Bob, that link takes me to my own inbox.

Don’t fret about that, Boncey, this is your one and only chance to save BWFC from extinction. You have been warned.

FV could have saved £2million and interest running at 7% p.a. if they’d paid off PBP by 1 August.

Why didn’t they? It couldn’t be that they don’t have the money to pay for what they bought, could it?

Congratulations to Plymouth Argyle. They've managed to file their 2022 audited accounts at Companies House within 3 months of their financial year-end.

I expect we'll have to wait another six months to get FV's historic facts and figures.

Ten Bobsworth wrote:Congratulations to Plymouth Argyle. They've managed to file their 2022 audited accounts at Companies House within 3 months of their financial year-end.

That's an incredible performance from Argyle's bean counters. Talk about being ahead of the game -2022 hasn't even finished yet.

wanderlust wrote:

That's an incredible performance from Argyle's bean counters. Talk about being ahead of the game -2022 hasn't even finished yet.

Are you really that numb, Lusty? Plymouth's financial year end is 30 June just like most clubs in the EFL.

Things seem to be going quite well down in Plymouth. Top of League 1, accounts bang up-to-date, shareholders list bang up-to-date, new investment and a chairman able to talk openly with the local Football Reporter.
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Modding seems to have disappeared from this site.

Shameful.

Natasha Whittam wrote:Modding seems to have disappeared from this site.

Shameful.

BREAKING NEWS
Natasha makes a bid for Numbnut of the Month.

Ten Bobsworth wrote:BREAKING NEWS
Natasha makes a bid for Numbnut of the Month.

I always give my all in everything I do. Is there a trophy?

Natasha Whittam wrote:

I always give my all in everything I do. Is there a trophy?

Sorry, there's no trophy but the prize is a romantic dinner for two with the Chief Football Writer of the Beeno.

Ten Bobsworth wrote:Sorry, there's no trophy but the prize is a romantic dinner for two with the Chief Football Writer of the Beeno.

I'm in, sounds like a great night out. Think of all the BWFC knowledge that man has, almost as much as I do.

Natasha Whittam wrote:

I'm in, sounds like a great night out. Think of all the BWFC knowledge that man has, almost as much as I do.

Oh Yes! There's a lot of competition, mind you.

Marc likes a set menu. Here's a sample:

Starter

Tripe and tommyrot in codswallop sauce

Main

Braised balderdash with blather mash and buttered garbage

Dessert

Marc's cobblers with cack and custard

Or

Car Slime Pie with bilge drivel

Enjoy

New Memorandum and Articles of association have been filed at Companies House today but not available to see yet