Winding Up Order Wednesday

[in the know]

I dread to imagine what the overall amount of debt must be if absolutely everything up to today and future liabilities that should be met in advance would add up to!! Mind numbing amounts! RM must be stressed - don't envy his position but do have a weird respect of his juggling abilities and the bravado and confidence he displays. Whether real or put on for the media.
The song ' somewhere over the rainbow' has come into my head.... But at the moment can he even see the rainbow - never mind looking for that pot of gold

 

[Yorkshire Blue]

I dread to imagine what the overall amount of debt must be if absolutely everything up to today and future liabilities that should be met in advance would add up to!! Mind numbing amounts! RM must be stressed - don't envy his position but do have a weird respect of his juggling abilities and the bravado and confidence he displays. Whether real or put on for the media.
The song ' somewhere over the rainbow' has come into my head.... But at the moment can he even see the rainbow - never mind looking for that pot of gold

Maybe he thinks Alan McCormack is holding it?

 

[Rayleigh boy]

Assets listed in latest accounts
View attachment 12870View attachment 12871View attachment 12872View attachment 12873

thanks for this ... debts owed to group - 13million ...

so when the whole thing pays off RM gets 13 million

fine by me - nothing scary in these accounts

 

[Supa Shrimpa]

thanks for this ... debts owed to group - 13million ...

so when the whole thing pays off RM gets 13 million

fine by me - nothing scary in these accounts

Plus these accounts were two years ago (Jul 18). The July 2019's haven't been filed yet, and they were supposed to be in at the end of Jul 2020.

 

[thenobster]

Future of some EFL clubs in doubt

Some English Football League clubs will struggle to stay afloat beyond Christmas if there is a delay to the wider return of fans, BBC Sport has been told.

www.bbc.co.uk

just saying

 

[Billy Bests boot laces]

It's probably been asked & answered before on here, but i cant remember!. Why are we in such a mess, when many other clubs in League 1 & 2 have lesser attendances than us, lower turnover etc, yet never seem to get in the yearly mess we do?.
Poor budgeting, or other factors?.

 

[Jai]

It's probably been asked & answered before on here, but i cant remember!. Why are we in such a mess, when many other clubs in League 1 & 2 have lesser attendances than us, lower turnover etc, yet never seem to get in the yearly mess we do?.
Poor budgeting, or other factors?.

Financial mismanagement going back four years. All stems from when Kavanagh left and wasn't replaced. The problems we see today are directly related to mistakes made in the past.

 

[Andy_S]

It's probably been asked & answered before on here, but i cant remember!. Why are we in such a mess, when many other clubs in League 1 & 2 have lesser attendances than us, lower turnover etc, yet never seem to get in the yearly mess we do?.
Poor budgeting, or other factors?.

I think a huge part of it comes down to the fact that we chased the dream again, just like we did before the last disaster of finances before Sturrock came in. The money paid out for the likes of Kightly, Cox, Kiernan etc etc was way beyond our means. Then we've ironically had to pay off those three in particular, again costing way beyond what we could afford.

 

[KiwiRob]

Financial mismanagement going back four years. All stems from when Kavanagh left and wasn't replaced. The problems we see today are directly related to mistakes made in the past.

Sorry if this question has already been answered. But if Southend has the funds in place to clear the full debt, by say next Monday, could the embargo be immediately lifted or do the club have to wait for the next scheduled meeting 40 or days away?

 

[Mr Bone]

Plus these accounts were two years ago (Jul 18). The July 2019's haven't been filed yet, and they were supposed to be in at the end of Jul 2020.

and I doubt the assets have increased in that time .

 

[Mr Bone]

thanks for this ... debts owed to group - 13million ...

so when the whole thing pays off RM gets 13 million

fine by me - nothing scary in these accounts

But by being an intercompany debt , there are no interest charges , no pressures to repay, no repayment plan and a creditor who won't try and wind us up.

 

[Barry.C]

I am in no doubt about just how difficult this has been for us with Covid hitting just at the wrong time and all the terrible consequences

I was also wondering though about whether there has been any upside in terms of costs? Any views?
Presumably we have saved on certain tax costs like VAT
We only have 6 senior pros and a large squad of youngsters, Did the seniors and others have to take a wage drop to League 2. All our kids are not on big money. We ahce cleared out a lot of high wages.
No CEO and other staff savings and administrative savings ?
Furlough Savings? Working from Home ? Secretary left?
Less use of Roots Hall , bar etc , staff , heating and lighting.upkeep
Delays accepted in making other payments, ? Rate reliefs
50% of season ticket money etc

Forgive me im not an expert in these areas and by no way seek to minimise all our current concerns about how the feck we find close to £500k. Also Have we received the EFL advance and all the transfer, sell on monies?
But just interested for a moment on this side of the balance sheet?

 

[Napster]

I am in no doubt about just how difficult this has been for us with Covid hitting just at the wrong time and all the terrible consequences

I was also wondering though about whether there has been any upside in terms of costs? Any views?
Presumably we have saved on certain tax costs like VAT
We only have 6 senior pros and a large squad of youngsters, Did the seniors and others have to take a wage drop to League 2. All our kids are not on big money. We ahce cleared out a lot of high wages.
No CEO and other staff savings and administrative savings ?
Furlough Savings? Working from Home ? Secretary left?
Less use of Roots Hall , bar etc , staff , heating and lighting.upkeep
Delays accepted in making other payments, ? Rate reliefs
50% of season ticket money etc

Forgive me im not an expert in these areas and by no way seek to minimise all our current concerns about how the feck we find close to £500k. Also Have we received the EFL advance and all the transfer, sell on monies?
But just interested for a moment on this side of the balance sheet?

No win bonuses

 

[londonblue]

No win bonuses

Our squad will be getting plenty of "No win" bonuses.

 

[Beefy]

We're not really £13m in debt. It's a paper figure that no one - especially not Ron Martin - ever expects to be repaid. It has to stay on the books though because the corresponding entry to the debt sits as an asset in the accounts of the various companies who have 'lent' SUFC the money.

If the debt get fully written off then it decimates the balances sheets of the other companies (I believe if this wasn't the case we'd have gone into Administration years ago).

 

[londonblue]

We're not really £13m in debt. It's a paper figure that no one - especially not Ron Martin - ever expects to be repaid. It has to stay on the books though because the corresponding entry to the debt sits as an asset in the accounts of the various companies who have 'lent' SUFC the money.

If the debt get fully written off then it decimates the balances sheets of the other companies (I believe if this wasn't the case we'd have gone into Administration years ago).

That will be repaid when the FF deal goes through. Rest assured Ron Martin will make sure he gets paid.

 

[Beefy]

That's where he'll make his money back, but he owns the land, he owns the assets and the debt will still sit on our books.

 

[tallboyblue]

That's where he'll make his money back, but he owns the land, he owns the assets and the debt will still sit on our books.

Premier league clubs still manage to spend millions and millions on overseas players paying astronomical salaries in very difficult times for most businesses. Perhaps it is about time the Government stepped in and in some way forced these wealthy clubs to hand over a proportion of their income to support the lower leagues .Same story rich get rich and poor get poorer.

 

[llama]

Can anyone explain to me in layman's terms how the £500,000 tax bill has been generated?

Correct me if I am wrong, but I am under the impression that companies only pay the HMRC when they have made a profit in the financial year?

By my calculation, what with corporation tax being 19%, at some stage we must have made £2.61 Million PROFIT to have generated a tax bill of half a million.

When and how did we make a profit of the sum of £2.61 Million?

 

[harveyoe]

Can anyone explain to me in layman's terms how the £500,000 tax bill has been generated?

Correct me if I am wrong, but I am under the impression that companies only pay the HMRC when they have made a profit in the financial year?

By my calculation, what with corporation tax being 19%, at some stage we must have made £2.61 Million PROFIT to have generated a tax bill of half a million.

When and how did we make a profit of the sum of £2.61 Million?

I believe this has more to do with PAYE, NI and VAT collected but not paid over to HMRC. I would be surprised if we have ever had to concern ourselves with Corporation Tax.