Thanks Lusty, get ready for Sluffys reply
To be fair to Wanderlust the two posters who I tend to look for on ww for their views on accounts also are upbeat and positive about them and I haven't read the thoughts of the poster on tw I look out for as they don't appear to even have a thread on them?
It's true no one knows what the future may bring - for example whatever FV's financial planning for BWFC (and the hotel) was certainly didn't take into account Covid and all what followed afterwards.
And the accounts are always a year behind real life, that's how the system works.
So why bother having accounts at all, indeed Wanderlust more or less claimed in this thread that every company puts in fantasy submissions anyway!
Well the answer to that is really because of what they are used and intended for - which is to analysis the health of the company for investment purposes - that's why we have things like the Stock Exchange, the Financial Times, and Company Law which are the cornerstone of commerce and which all countries (even China and Russia) comply to. Similarly there is a whole business sector that do checks on companies - banks and financial institutions when they loan money, credit agencies for when other business want to do business with them - will they get paid in the end?
I guess the main difference between Wanderlust and myself is that one of us likes facts and the other fiction.
The purchase price that FV bought the business for wasn't £10m as Wanderlust believes it was in fact £26m - big difference.
They didn't even have anything like £10m to put down - that's why we had to take on the 12 point penalty (look at Derby who's owner paid all their creditors on take over and haven't incurred any penalty points deductions).
We also aren't starting at 'ground zero' or as a 'start up company' because FV took on debt when the took ownership and this debt has to be serviced until it is paid off. I've highlighted from the accounts (I don't know if you bothered to read the stuff I posted - clearly Wanderlust hasn't) that they clearly show that for every £6 FV got in from income they had to pay out £1 to service these debts.
If you think that's bad then as Maguire pointed out even before I had chance to look at the accounts myself, that for every £100 FV got they were paying £112 just in wages alone!
Remember in Wanderlusts world he sees FV as having no debts and £10m in the bank - which is patently untrue, no matter what he may say.
Clearly then FV are in some sort of trouble already in just surviving!
Ok, they would have planned for some of this - for instance EDT, PBP and Warburton all deferred payment for their outstanding debts and transferred it from Burnden Leisure to Football Ventures in order to allow the sale to go through.
They also planned that they didn't have the money to pay off the unsecured creditors at 25p in the £ from day one (nor even in the year) so had to agree to a 12 point penalty and to pay an increased 35p in the £ within two years instead.
They certainly didn't plan for Covid, no one did, and ended up having to take out a £5m loan from the government simply to survive and which later was turned into shares (equity) and which the government now owns more or less 9% of the company.
They also didn't plan to put £10m of their own money to keep the club solvent - which they had to do last year which will be shown in the next accounts which will be published in 2023.
If they had really intended to do so then they would have put in as equity (to add to the initial £2m they had started with) rather than put in loans secured on assets.
Let me explain this little bit.
A company if it goes bust is 'limited' to paying out the creditors to it from the remaining money and assets that are left in the company plus the share equity put into it.
If Sharon had loaned FV her money and secured it against assets - she would get it all back, however if Sharon put her money in as equity - she would lose it all.
That's why they were happy to risk £2m of their money but have now had to risk £12m - they would not have swopped their loans to FV into equity willingly unless they really had to do so.
The accounts if you read them actually show much more about the equity that non of us knew before, namely a Swiss Consortium through a company owned by Luckock PLUS an unnamed private investor acting through Sharon (being their proxy) have purchased more shares in FV to the value of £4m.
One of the direct results of this seems to be that Sharon is no longer in majority control of FV directly.
It's pretty clear FV have no money in fact it looks to me from the accounts that over the course of that year FV was running up a debt across the business of almost £14m that had to be plugged by EDT waiving the much of it's debt owed to them, taking on the government's £5m loan and the directors themselves having to put in loans from their own pockets.
All this really isn't good.
Clearly though FV haven't stuck around for no reason.
I've never understood what it was though?
The reality is that we aren't going to be a Premier League team anytime soon - so let's forget that notion, so is Sharon simply just doing an Eddie, for the love of it only funded from her own purse?
I don't buy it myself but others may do.
The key to understanding this I believe is Luckock - why is he involved at all?
He seems to be a venture capitalist or some such and we seemed to have just got agreement to do a massive new development on land around the club. It also looks 'coincidently' that Luckock's company he recently set up has just bought shares in FV on behalf of a Swiss Consortium (I read 'Swiss Consortium' as a vehicle where rich people around the world have put their money in order to invest it to make it grow).
I speculate that all this is about hasn't been primarily about BWFC at all but rather is a venture capitalist investment plan to fund the development that was all dependant on FV acquiring the club - why else was Luckock involved from the purchase from the Administrators?
The club owns the land and that is why they paid significantly over the odds to get it, and have been willing to put just enough money into BWFC to keep it going (but not enough to negate the points penalty or put most of their money in as equity) and when the plan looked to actually going to be approved, then were confident enough at that point to put the further £10m of their own money into equity.
I don't think this is about BWFC at all, I think BWFC is just a means to an end - they need the club to own the land to build the development on.
Will all this benefit BWFC?
Yes it should do eventually.
For now Luckock controls the land through ownership of the club - so he would lose ownership if we fell into Administration - so that wont be allowed to happen.
There's no reason not to believe Sharon is a genuine person and wants the club to succeed but on a basis of self sustainability that we are not near yet but she (and Luckock) are happy to financially keep the club going at least for the foreseeable future.
If the development takes place the club could sell the land and receive a financial windfall or lease the land and/or become the landlords of the development which in turn would bring in a revenue stream to the club in the future.
It might be at that point that FV decide to sell the club as it would be an attractive investment to others - it clearly was not at without the developments approval!
So to conclude, accounts are there for people to interpret as to what has gone on, and which direction the business is heading.
Wanderlust seems to scoff at people like Bob and I 'reading the tealeaves' and 'bean counting' but that is what people far cleverer and wealthier than I'll ever be do - and how they make their millions.
I don't pretend to know all the answers but the 'guess'es' I make are 'educated' ones based on what facts we know and I do so for my own enjoyment and amusement.
If Wanderlust, you or anyone else thinks I'm talking out of my arse then fine, it doesn't bother me.
It does however clearly irk Wanderlust a great deal though every time I mention him being a massive £168m out though - when he had a go at reading them once!!!