ClaretPete001 wrote: ↑Wed May 24, 2023 9:07 pm
£37 million was spent on shares during the financial year to 20/21 with a further £10 million spent as a post balance sheet event but it was clearly available and there was £50 million in the bank in July 21. In fact, by July 22 the bank had fallen from £80 (19/20) million to £50 million (20/21) to £13 million (21/22).
So, £80 million in cashflow has fallen to £13 million and no one is worrying. At least you are clearly not...!
I think it is reasonable to argue that the over the course of the 21/22 season we could have spent significantly more on players and not been in debt. I would say £50 million but you can put whatever figure you like on it.
The proof of the pudding is that they spent it on shares and without the additional £65 million loan from MSD there would be no debt.
Now if you want to argue that it was £35 million and we could have had an additional 2 players and not 6 because we needed £15 million for wages then so be it. A £20 million midfielder and a £15 million striker may well have seen us safe
Otherwise, you are arguing that £50 million was spent on shares and frankly it couldn't have been spent on anything else
It was spent, and the debt is the MSD loan how self-evident can the point be?
I'm hoping we are speaking at cross-purposes.
As suggestion: when we speak of balance sheet values we speak of the date of that balance sheet, so cash at 31st July 2020, cash at 31st July 2021 and cash at 31st July 2022. When we speak of cash flow we speak of cash coming into the business and cash going out of the business through the reporting period, so cashflow 19/20, 20/21, 21/22 etc.
I don't want to recall everything that happened in the transfer window summer 2021. A number of players were signed, Maxwel Cornet, Connor Roberts, Nathan Collins - and one I'd forgotten earlier, Aaron Lennon (I think AL was free transfer - but, no doubt, required being paid a wage). Some on here will recall the other players the club was believed to have pursued, but wasn't successful in signing.
In January 2022, the club signed Wout Weghorst and again the club was reported to have pursued signing another player though he eventually went elsewhere (or did he stay where he was on a better contract).
I'm pretty sure that the club didn't set out to get relegated at the end of the 2021/22 season even though that's how the season ended up. I think we can accept that the club gave Sean Dyche a better contract in the first half of that season - even though SD ended up being fired some months later.
None of these actions are evidence that ALK didn't want to invest in and grow the club.
Yes, I'm not worried about the club's finances (including the debt). Alan Pace and ALK are smart enough to be able to manage things. They are the people that have bought the club. They understand what they are doing in the way they have financed the acquisition. Yes, it includes debt. Yes, they have used money borrowed from the club to finance some of their acquisition of the club.
Please don't call me a glory hunter. I like supporting Burnley when they are a successful football team. I think most of us will agree that we've enjoyed the last season. We've enjoyed Vincent Kompany managing the team. We've enjoyed the many new players Vincent Kompany has signed for the club - all, very obviously, with Alan Pace's financial support. Yes, I've been a Burnley supporter for many years when we couldn't describe them as a successful team. But, let's enjoy the good times and hope that they continue for many seasons.
Vincent Kompany is a very smart guy. Not only does he understand how to manage a football team he also understands the finances of football teams. He has said that he discussed finance with Alan Pace before agreeing to join the club. He has recently signed a new contract with the club - and, if we accept some accuracy in the media reports - turned down offers to join either Spurs or Chelsea (and, maybe one or two other clubs).
I made my own judgement when we all learnt that Alan Pace was in the running to buy the club that this would be good for BFC. I never imagined that less than 2 years later Vincent Kompany would be our manager. However, I take a lot of confidence that Vincent Kompany understands that the club has the finances he needs to achieve his and the club's ambitions.
UTC