Yes, the accounts are crystal-clear on the matter (cited below) - and entirely consistent with your suggestion that TH could decide on a whim at any time to sell every last player we've got who's worth a scorrock and let us slide down the leagues exactly in the manner you suggested.
So, shhhhhhh, mum's the word, yeah? Remember to say "we won't stand in the player's way", "lure of the Premier League", blame the agents, etc.
The financial statements have been drawn up on a going concern basis, which the directors believe to be appropriate.
The directors acknowledge that, in common with many football clubs in the Championship, the company is likely to incur future losses and net cash outflows.
The company has prepared detailed cash flow forecasts taking account of reasonably possible downsides that show that it has a projected additional cash flow requirement within twelve months of approval of these financial statements of approximately £5,668,000, with further cash requirements subsequent to that period.
As in previous years the forecasts have been prepared on a prudent basis such that a good performance in the league, a player sale, a cup run or increased TV coverage will significantly increase projected income and therefore reduce the projected cash flow requirement. Conversely the club may choose, subject to having sufficient funding in place, to make additional signings in the January and/or August transfer windows if this is considered to be in its best interests and this could increase the projected cash flow requirement.
The ultimate parent company, Deepdale PNE Holdings Limited has indicated its intention to continue to make available such funds as are needed by the company for the period covered by the forecasts. However, the ability of Deepdale PNE Holdings Limited to continue to provide this support is dependent on itself receiving funding from, and non-repayment of existing loans made by, the ultimate shareholder, Mr T.J. Hemmings.
The following disclosure has been made within the ultimate parent company's (Deepdale PNE Holdings Limited) 30 June 2019 group and parent company financial statements regarding its own going concern:
"The parent company is wholly owned and ultimately controlled by the family interests of Mr T.J. Hemmings and the support of the ultimate shareholder has been evident for many years. Support amounting to a £6.690.000 loan was advanced to the group via its intermediate holding company, Grovemoor Limited, during the year to 30 June 2019. Loans provided directly or indirectly by the ultimate controlling party totalled £43,021,000 at 30 June 2019 (20 /8: £36,331, 000) remain outstanding and are callable on demand.
"The group has prepared detailed cash flow forecasts taking account of reasonably possible downsides that show that the group and company have a projected additional cash flow requirement within twelve months of approval of these financial statements of approximately £6.698,000 with further cash requirements subsequent to that period. This assumes that the existing intermediate parent company loan balances, are not called for repayment in that period, and also takes into account funding received after the year end.
"As in previous years the forecasts have been prepared on a prudent basis such that a good performance in the league, a player sale, a cup run or increased TV coverage will significantly increase projected income and therefore reduce the projected cash flow requirement. Conversely the club may choose, subject to having sufficient funding in place, to make additional signings in the January and/or August transfer windows if this is considered to be in its best interests and this could increase the projected cash flow requirement.
"As in previous financial years the group has not sought to secure guaranteed finance to fund its cash flow projections in full for twelve months from the date of approval of these financial statements. given the high level of variables involved and the cost of securing additional facilities that may not be required. Based on discussions with the relevant shareholders and shareholder related parties, the directors are of the view that sufficient additional funds will be available from those parties, and that the company's intermediate parent company will not request repayment of the outstanding loans provided within 12 months from the date of signing these financial statements. As with any company placing reliance on other group entities and shareholders for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
"After making enquiries and considering the uncertainties described above, the directors have a reasonable expectation that the group and company will have adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the financial statements. However, the combination of these circumstances indicate the existence of a material uncertainty which may cast significant doubt on the group and company's ability to continue as a going concern and therefore the group and company may be unable to continue to realise their assets and discharge their liabilities in the normal course of business."
Based on these indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, the above circumstances represent a material uncertainty which may cast significant doubt on the company's ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.