This site is blessed with a healthy ‘return’ of accountants amongst its contributors … ‘return’ is the collective noun for accountants. As a genre, they don’t suffer fools lightly. Here are some pointed responses to the mythical £200m in the bank story that is being widely touted on the net.
The following comments are all from qualified accountants:
For the love of God can people stop talking about £200m sitting in the bank….it’s one number from a set of accounts….surely we all have more than one brain cell and understand that it’s not ours to spend today.
First I’ll put it in basic terms:
It’s pay day you receive your monthly wage, let’s say for arguments sake £2k.
This month you have to pay for your mortgage/rent, food, rates, clothes, fuel etc.
Do you have £2k to blow on a night out in London?
Hopefully the answer is no.
Now let’s get to the Arsenal figures:
Fixed Assets (Land, Buildings, Investments) £596m
Current Assets (Stock, Debtors and cash of £228m) £323m
Current Liabilities (Creditors, loans etc) £273m
Long Term Liabilities (Mortgages etc) £314m
Add first two deduct second two Net Assets are £330m
Now let’s understand something, Net current assets are £60m, so the most “cash” we had to spend was £60m, we have to generate profit to keep paying mortgage without reducing our cash more, in 2014/15 we would have lost £8m if it wasn’t for profit on player sales of £28m, if anyone failed to notice we didn’t sell anyone this season so that’s going to be more than likely. Loss in 2015/16 and out cash would have gone down by whatever that loss is.
So please stop regurgitating nonsense heard on media outlets with the sole objective of winding Arsenal fans up.
If the fans that want to believe we are so bad are correct can someone explain me this….how the f*** are we even 4th? Because everyone else is rubbing this year? Well that doesn’t really hold water does it?
We should have spent £x million on players as we haven’t got a squad capable of doing anything great, but the manager is also poor for not getting the most out of these average players?
Sorry you can’t have both, either manager bad and players get him out of jail, or players bad and managers system and tactics gets most out of them.
Frustrating isn’t it GIE?
Funny that the ones who bang on about £200 million have little to no understanding of interpreting a balance sheet.
I know quite a few other chartered accountants who generally interpret the figures as you and I, they have no choice, it’s there in black and white
There is one colleague, an Arsenal season ticket holder who though agrees with the general premise feels we fail to take enough risks. Fair enough, I don’t agree but it’s his point of view but whilst having a beer with him the othe day I mentioned I know some people who think we have £200 to spend today, we both spilled our beer from laughing.
A special well done to GIE, for trying I suspect without any hope, would help people to understand what is obvious to us, that a company’s working capital is just a snapshot in time and is continually changing.
As it happens, I got paid for some work I did for a friend and got his check yesterday and banked it, without giving away personal info, let’s say it was for £750.
So with £750 in the bank, or ‘cash’ as some like to see it, I am off down to buy a laptop today, so that I do not have to keep borrowing my buddy’s crap one.
Only….I’m not. Why? Because if I did that I would not be able to pay my share of the rent in two weeks time, and I also have to pay my share of the fuel costs here.
So this magical, mystery £60m, or whatever is the current flavour of the blogs, that Arsenal had at the end of May last year, did that include payment in advance for some season tickets in the current season, or does some of it have to go towards paying salaries, or our debts, or, or, or.
I fear we are not getting the message across Exile and I wish you luck with that. 😀
Ed: Do you wish to cross fiscal swords with these assessments or has the message finally come across?