PNE Online
Welcome to PNE-Online. Why not register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox! You can also join up as a forum Patron to help support in the running costs of the forum.

Operating loss

It doesn’t really matter whether you call it a loan, share capital or an expense, it’s money going out of Hemmings pocket and, largely, in to the pockets of players, the manager, and the Taxman.
In the operation of a business he owns that is notoriously expensive to operate, yet which he has to be prepared to operate in perpetuity, otherwise it's insolvent and it's out of business.

Luckily, as a billionaire, he can well afford those operating costs, especially when they are mitigated by some very nice subsidies (TV money, transfer fees, etc.).

And if the costs are packaged in the form of interest-free loans to himself, there's always the very real chance - if he keeps plugging away, and keeps the business solvent, which he certainly will - that he can get it all back later on, via the sale of the business, or the disposal of player assets, or a dramatic increase in those TV subsidies via league promotion.

Which is why it isn't really a loss.
 
In the operation of a business he owns that is notoriously expensive to operate, yet which he has to be prepared to operate in perpetuity, otherwise it's insolvent and it's out of business.

Luckily, as a billionaire, he can well afford those operating costs, especially when they are mitigated by some very nice subsidies (TV money, transfer fees, etc.).

And if the costs are packaged in the form of interest-free loans to himself, there's always the very real chance - if he keeps plugging away, and keeps the business solvent, which he certainly will - that he can get it all back later on, via the sale of the business, or the disposal of player assets, or a dramatic increase in those TV subsidies via league promotion.

Which is why it isn't really a loss.


So basically you only acknowledge scenarios can exist where he gets his money back. Despite he evidence that in the majority of football finance crisis the opposite tends to be the result. Not sure it’s a self fulfilling prophecy but it’s good you’ve nailed your colours to the mast that he succeeds
 
So basically you only acknowledge scenarios can exist where he gets his money back. Despite he evidence that in the majority of football finance crisis the opposite tends to be the result. Not sure it’s a self fulfilling prophecy but it’s good you’ve nailed your colours to the mast that he succeeds
I don't understand what you mean, I've "nailed" nothing to anything.

I've described in simple terms the business plan and the exit strategies - the basic rationale for bearing these so-called "operating losses".

"Success" is neither here nor there, in the way we'd measure it as football fans.

The current situation endures until TH decides otherwise.
 
In the operation of a business he owns that is notoriously expensive to operate, yet which he has to be prepared to operate in perpetuity, otherwise it's insolvent and it's out of business.

Luckily, as a billionaire, he can well afford those operating costs, especially when they are mitigated by some very nice subsidies (TV money, transfer fees, etc.).

And if the costs are packaged in the form of interest-free loans to himself, there's always the very real chance - if he keeps plugging away, and keeps the business solvent, which he certainly will - that he can get it all back later on, via the sale of the business, or the disposal of player assets, or a dramatic increase in those TV subsidies via league promotion.

Which is why it isn't really a loss.
That's a bit like a gambler losing £42m and saying it's not really a loss because I'm a 'Billionaire' and can afford it. A loss is a loss
 
That's a bit like a gambler losing £42m and saying it's not really a loss because I'm a 'Billionaire' and can afford it. A loss is a loss


Surely he is still in the game as yet, he could sell all our best players this summer and repay all his loans with interest and then sell the club off fairly cheaply to any Tom,Dick or Harry and anything received would be profit?

Don’t know if it works that way, but it makes sense to me.
 
Surely he is still in the game as yet, he could sell all our best players this summer and repay all his loans with interest and then sell the club off fairly cheaply to any Tom,Dick or Harry and anything received would be profit?

Don’t know if it works that way, but it makes sense to me.
In theory yes but he wouldn’t get back what he had put in and it would be a pretty stupid thing to do, sending us to League 1 at best and taking any residual value out.
 
Top