Is interest on a debt not included in the P&L account?Quote:
Originally Posted by pineapple stu
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Is interest on a debt not included in the P&L account?Quote:
Originally Posted by pineapple stu
It gets accrued alright. In reality though, interest on debtors is rarely charged. Given Shels don't appear to have massive bank loans or the like - they just owe people what they couldn't pay when the money ran out - I'd imagine it'd be minimal (I'm taking this view from the phrase "servicing creditors" as opposed to "servicing loans" or "servicing debt"). So servicing bank loans incurs interest; "servicing creditors" usually just involves paying them up and ignoring interest.
Quote:
Originally Posted by pineapple stu
You originally stated that Shels were overspending.
My point is the the modest loss of circa 70k was planned/budgeted.
Shels paid all budgeted & contracted wages in full and on time throughout last season.
Many other clubs did not - and now owe far greater sums in wages, to Revenue, etc..
If you want to accuse clubs of overspending - I suggest you look elsewhere.
When clubs are submitting their financial forecasts for next season are they allowed to put a sizeable portion of their income under the heading of 'Begging'?
I am just asking because that’s how Drogheda United appear to be raising most of their money.:confused:
What's your point?Quote:
Originally Posted by SMorgan
What do you want the Drogheda fans to do, just let their club die?
Not to mention tha the amount of money "begged" is tiny compared to the amounts already raised through "normal" methods
My very serious point is that clubs have to submit forecasts for the next season and I think we're on a hinding to nothing if those forecasts include items such as revenue from filling shopping bags at the local supermarket or bucket collections.Quote:
Originally Posted by Mr A
However, I do accept that my use of the word 'begging' was wrong and my point doesn't just relate to Drogheda United.
I'd be quite happy that this is covered in any reasonable definition of overspending. That it was planned is irrelevant. You may as well justify the E1m+ a year lost under Ollie as planned and therefore not overspending.Quote:
Originally Posted by Fintan Cassidy
For a First Division club, E70k of a loss isn't exactly modest either.
Well I think the FAI have begun to show that they've had enough of fantasy budget projections and are clamping down. This is definitely a positive development, although I suspect they're only really hitting the clubs that made the biggest losses last season.Quote:
Originally Posted by SMorgan
In relation to the original topic, I see that the Cobh members have now accepted the FAI's rescue plan.
No problems with that. Makes a change from turning a blind eye to those clubs as in the past.Quote:
Originally Posted by Mr A
On the other hand past performance is not necessarily a guide to future performance. Harps have been one of the better citizens in terms of budgeting etc over the past decade but last year lost the plot and set ourselves back years. Hopefully the FAI are being as objective as possible with their assessments for next year's budgets.
That's true too.
It was in one of the papers that the FAI have now vetoed three budgets. Wonder who the other two are? Wouldn't be surprised if Bohs were one.
That said, it remains to be seen what practical effect the move has. It's useless if clubs draw up a new budget and then spend silly money anyway.
What paper was that report in?Quote:
Originally Posted by pineapple stu
Sounds pretty incredible to me that they would only have vetoed three of them.
I have to stay I'm genuinely surprised that shels continue to draw down the Tolka money for day to day spending. It's quite shocking really.Quote:
Originally Posted by Fintan Cassidy
I'll try dig up the link. It was a throwaway line in an article linked on another forum about something else.Quote:
Originally Posted by BulmersKid
Edit - Indo link.
Quote:
Originally Posted by John Delaney
I don't understand. How could the FAI have a budget from the likes Drogheda United for the next 12 months?
That's an interesting question- have Drogheda even prepared a license application? I heard a whisper previously that they were not even going to apply for the premier.
Cue whinges from their fans in a couple of years' time about how the FAI relegated them unfairly.Quote:
Originally Posted by Mr A
Who said they did? Delaney just said they refused 3 budgets. He didn't say how many he recieved. As licensing is ongoing, some clubs may not have sent theirs in yet...Quote:
Originally Posted by SMorgan