So the world has turned upside down and the financial impacts are being felt in everyone’s pockets. But just what does it mean for #afcb?
Only one thing matters in a business at times like this - CASH.
This (rather long) thread gives my best guess on the impact of #Corvid19
BIG HEALTH WARNING: Cashflow projections are notoriously WRONG so treat with care
Assuming an 18th place, season doesnt finish, broadcasters come after a refund and the #afcb takes no mitigating steps, P&L looks very sorry with a loss of £53m (EBIT)
But that isnt the BAD news
The #afcb cashflow indicates that with current liabilities for past player purchases, wages, lease rent on the ground, etc the club would require a cash injection of £70m to maintain its current position.
So what does the club do?
Assuming #afcb uses all its cash and reduced wages & operating costs in line with the number of home games lost (ca 20%) then P&L changes to give a £0m loss (EBIT) and the cash required drops to £38m - still a v large number given Mr Demin is already in for £100m+
Reducing #afcb total operating costs by 20% (£3m) is optimistic but could be done - ground is closed etc. 20% of wages is harder given it is £20m in just 25% of the year! That needs everyone to take a pay cut of 80% for next 3 months! So you can see the attraction of furlough
You can also see why PL want to finish the season and not pay the clawback clauses. Do that and with all the #afcb temporary cost measures above, the cash required drops to £5.6m - much more manageable.
This is all based on a number of assumptions about #afcb which may or may not be correct and so I repeat
The finance guys at #afcb will be crunching the real numbers and will know stuff I dont. So that is my reason to be cheerful.
I’ve faced something of a similar scale in my business life some time ago and it was a killer of a time. BUT, and its a huge “but”, we had time to work out what to do and how to do it. Mr Blake and the guys at #afcb don’t have that luxury.
And finally...
So when we come out of this let’s hope that the Govt and it’s procurement arms remember the UK companies that have turned their businesses around to support the NHS and others and buy their goods in the future. #Covid19UK
...and when we are asked for a 2p hike in income tax let’s pay it.
Even those sneaky bastards who use tax lawyers to avoid it or who disappear overseas to ignore it.
The #NHS #Education #FireService #Police #UKForces matter. Pay to do it properly
Great stuff from the #BHAFC management team in following the #afcb guys’ lead and taking a substantial pay cut to support their club in these difficult times.
Once again these two smaller clubs lead the @premierleague’s uncoordinated approach to the #Covid19 situation 👏 👏 👏
You can follow @afcb_r0b.
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