Exeter continuing "problems". | PASOTI
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Exeter continuing "problems".

I Was There

I Was There

Feb 2, 2022
1,526
1,052
I wonder how deep the trusts pockets are, they can’t continually bail the club out sooner or later the money will run out
 
Graham Clark

Graham Clark

My Real Name
🇳🇬 Bim/Owen/Paris 🇳🇬
Nov 18, 2018
2,015
12,167
The real eye opener is the full page article in The Times today (behind a pay wall). They report the Academy has produced £40m worth of players since 2003 (and some say we shouldn't invest in Foulston Park!). There are reports of HMRC issues (now resolved), tales of unauthorised expenditure and 'ballooning staff numbers while mechanisms to put in place sustanability have failed'. The extra £200,000 put in by the Trust are to tide them over cash flow wise over the Festive period.

A couple of other snippets of interest about payment of transfer fees and add ons. City are entitled to 20% of the £15m Jay Stansfield transfer. However, that fee is paid over seven years but the club have to pay the Corporation Tax (25%) on ther full £3m before they receive full payment!!! They will only receive the final £400,000 from the Amapadu transfer to Chelsea in 2017 this year!

The article has really opened my eyes even more o the reality (or fantasy) of football finances. The back of envelope caluculations as to transfer fee income is often wide of the mark. It also shows that true sustainability with player wages so high in a declining revenue environment has implications for all clubs outside of the Premiership. The day of financial reckoning for Argyle is fast approaching if we are to continure hovering around the relegation zone.
 
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Devongreenowl

Devongreenowl

May 27, 2019
4,103
1,658
EXETER/OWLERTON
Sad that they are clearly in deep financial trouble and it’s notable that the Chairman only ‘expects’ they will finish the season, rather than categorically saying they will or even that he’s confident they will.

Not good for Devon football if they go the way of Torquay - or worse.
 
HartleyGreen

HartleyGreen

Dec 28, 2023
1,813
4,022
It’s a pretty crap time to be a supporter of a club without a sugar daddy bankrolling things.

Had a lovely place with the ex overlooking Cathedral Green years ago and grew quite fond of parts of the city.
It’s a shame a large percentage of their fans are so backward, really let the place down.
 
Brussels Bureaucrat

Brussels Bureaucrat

Jun 16, 2017
5,967
6,387
Ixelles/The City of Plymouth
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Greenscombe

Greenscombe

Feb 14, 2022
1,982
2,893
Graham Clark said:
The real eye opener is the full page article in The Times today (behind a pay wall). They report the Academy has produced £40m worth of players since 2003 (and some say we shouldn't invest in Foulston Park!). There are reports of HMRC issues (now resolved), tales of unauthorised expenditure and 'ballooning staff numbers while mechanisms to put in place sustanability have failed'. The extra £200,000 put in by the Trust are to tide them over cash flow wise over the Festive period.

A couple of other snippets of interest about payment of transfer fees and add ons. City are entitled to 20% of the £15m Jay Stansfield transfer. However, that fee is paid over seven years but the club have to pay the Corporation Tax (25%) on ther full £3m before they receive full payment!!! They will only receive the final £400,000 from the Amapadu transfer to Chelsea in 2017 this year!

The article has really opened my eyes even more o the reality (or fantasy) of football finances. The back of envelope caluculations as to transfer fee income is often wide of the mark. It also shows that true sustainability with player wages so high in a declining revenue environment has implications for all clubs outside of the Premiership. The day of financial reckoning for Argyle is fast approaching if we are to continure hovering around the relegation zone.
Click to expand...

One slight point - they will only pay Corporation tax if they make a profit after any adjustments, so assuming the problems are spending more than they receive rather than just cash flow, that may not be relevant. They can also offset previous year losses against any CT bill. I'm not up to date with Exeter's accounts so not sure if that is applicable.
 
Brussels Bureaucrat

Brussels Bureaucrat

Jun 16, 2017
5,967
6,387
Ixelles/The City of Plymouth
Devongreenowl said:
Hope so. It’s normal not to like them as a rival, but no way would I want them to go bust or even into serious difficulties. I wouldn’t even want that for the Blades.
Click to expand...

Yeah exactly this. Theirs is the sort of model that should be the ideal for clubs of their size in the lower half of the Football League, and the fact it's not sustainable is profoundly depressing, and an illustration of how broken football's financial structure is.
 
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