PLEASE LOGIN or REGISTER FOR FEWER ADS, MORE LIVE FEATURES & CLUB RELATED NEWS
GOOGLE REPORTS FOR THE PAST MONTH : Unique Users 115,772 Pageviews 5,467,188.
WWW.RLFANS.COM • View topic - What's happened to our £1/2M Pledge money?

Board index Kingstone Press Championship Bradford Bulls - RedAmberandBlack.net What's happened to our £1/2M Pledge money?

 

bobsmyuncle Free-scoring winger
Free-scoring winger

Joined: Tue Mar 04, 2008 2:03 am
Posts: 1833
I understood that the £1,250,000 lease sale paid off the Bank and the RFL loan.
We still owe £250,000 for vat on that and the tax on Image Rights so the money didn't go there.

What other debts were so desperate for payment that the Pledge told us we must raise money immediately or face extinction?
Fantastic response from all Bulls fans but - Where was the money spent?
And why are we still in a financially sh*t position after this effort?

Let's be real - £1/2M is a seriously ginormous amount of money to disappear into a black hole.
So where did it go?
mat Silver RLFANS Member
Silver RLFANS Member

Joined: Wed Jun 22, 2005 7:07 pm
Posts: 8198
Location: bradford
First yearly instalment of image rights payment and wages/vat for that month at a guess
mat Silver RLFANS Member
Silver RLFANS Member

Joined: Wed Jun 22, 2005 7:07 pm
Posts: 8198
Location: bradford
mat wrote:
First yearly instalment of image rights payment and first installment of stadium vat and wages/vat for that month at a guess
Adeybull User avatar
Gold RLFANS Member
Gold RLFANS Member

Joined: Sat Dec 22, 2001 12:04 pm
Posts: 14145
Location: At the Gates of Delirium
Jan and Feb (and prob Mar) PAYE; paying off the overdraft the bank called in. April salaries.
Nothus User avatar
Bronze RLFANS Member
Bronze RLFANS Member

Joined: Fri Mar 04, 2005 10:27 pm
Posts: 2696
Location: Bradford
The lease sale didn't pay off the bank did it? I thought the lease sale was to a) pay back the £700k rfl loan and b) give us some much needed capital.
One of the main reasons the pledge came to fruition was because of the bank o/d being reduced.
Adeybull User avatar
Gold RLFANS Member
Gold RLFANS Member

Joined: Sat Dec 22, 2001 12:04 pm
Posts: 14145
Location: At the Gates of Delirium
bobsmyuncle wrote:
I understood that the £1,250,000 lease sale paid off the Bank and the RFL loan.
We still owe £250,000 for vat on that and the tax on Image Rights so the money didn't go there.

What other debts were so desperate for payment that the Pledge told us we must raise money immediately or face extinction?
Fantastic response from all Bulls fans but - Where was the money spent?
And why are we still in a financially sh*t position after this effort?

Let's be real - £1/2M is a seriously ginormous amount of money to disappear into a black hole.
So where did it go?

The black hole -I have been calling it that for three months now - predates the pledge.

The RFL loan was apparently 700k. The club received 1,500k including VAT (most still outstanding) for the lease sale. That means we had 800k available, even after repaying all of the loan that for some reason the club overlooked telling us about. Plus we had the money from the season ticket sales -or should have had.

The 500k pledge was supposedly to replace the overdraft facility and the half (?) of the RFL loan that was repaid much earlier than they say they expected. That would then enable the Jan and Feb PAYE and the April salaries to be paid, around 300k in total, and we presumed a big dent in the VAT.

So that suggests the 800k should really have been maybe 1,150k. Plus the season ticket monies.

Yet that lot seems to have just disappeared. The black hole, as I have called it.

So where the hell did it go? Possibilities include:

- simply paying the salaries and other running costs from around October; on the assumption that other income was far far less than ongoing costs;

- paying off some other loans or liabilities we were unaware of (maybe including the last lot re Harrisgate);

PH has said he was told by the club's auditors (wtf was the club's financial controller playing at if PH needed the bloody auditors to tell him the 2011 results, not her?) that the club made 250k (IIRC) profit in 2011? If that included 1,250k profit on sale of lease, (no book cost, remember) than that would mean an operating loss for 2011 of about 1m, would it not? If that is right, then it would suggest that the "losses of 100k/month" the new lot have referred to may not be as far fetched as many assumed? And that therefore the club's finances were totally unsustainable as they were?

Everything to me is pointing to a business that was hopelessly short of income, where the only way of cutting operating costs was by seriously hacking the playing staff budget - since what the hell else was there to cut?

This does all, unfortunately, lend credibility to the few bits the new lot are choosing to release about the cash requirement being larger than expected. Not to pay past bills but to pay ongoing operating costs.

I have repeatedly asked where the balance of the lease sale money - and the VAT on it - went, since to me that is crucial to a proper understanding of what the hell happened. I had already written off most of the 2012 season ticket income as being used to keep the club afloat in Q4 2011, which would itself have been a massive issue. We will never now know if the previous lot DID have a viable business plan in place and realistic expectations of income to plug the funding gap. All we know is that we bought some time. But from the sort of numbers being talked about or that one can deduce, The ongoing costs less income funding gap may be so large that at best we can look forward to a future of mediocrity.

And probably not at Odsal.

That is the best I can deduce from the available information.
bobsmyuncle Free-scoring winger
Free-scoring winger

Joined: Tue Mar 04, 2008 2:03 am
Posts: 1833
Adeybull wrote:
Jan and Feb (and prob Mar) PAYE; paying off the overdraft the bank called in. April salaries.

If it was true that the Bulls had paid all Paye/Nic taxes up to March and a repayment deal had been made re vat on the lease
Then why would HMRC have taken the draconian action of a winding up of the Bulls?
Both of us know that such action usually comes after prolonged negotiations regarding large amounts of continuously underpaid tax.
Adeybull User avatar
Gold RLFANS Member
Gold RLFANS Member

Joined: Sat Dec 22, 2001 12:04 pm
Posts: 14145
Location: At the Gates of Delirium
April PAYE.

And the current policy within HMRC as I understand it, having been fleeced by sports clubs too many times, is to go in heavy hard and fast when taxes are overdue and there is a history of non-payment.

That way, you at least force the issue and have a chance of getting some payment rather than take your chances amongst the ranks of the unsecureds, of which you are usually easily the largest.
pulsator2k7 User avatar
Free-scoring winger
Free-scoring winger

Joined: Mon Jan 17, 2011 9:12 pm
Posts: 1211
Location: The Land Of Hope & Optimism
Its nothing to do owing for PAYE/NICs :WHISTLE:
Cibaman Silver RLFANS Member
Silver RLFANS Member

Joined: Wed Apr 10, 2002 1:49 pm
Posts: 5879
Location: Bradford
It seems that the hugely discounted season tickets was a massive gamble that failed badly. And rather than recognise that, the error was componded by being repeated for a second season.

It was said at the time that the cheap tickets could be economically justified by increased sponsorship, merchandising and bar takings. But it was clear after a couple of games that the actual numbers in the ground were much less than the reported attendances, which would have been obvious to sponsors. The beer queues didnt increase and my nephew who bought a season ticket but only went to 3 or 4 games because of work commitments didnt buy a shirt.

Its likely that we've been making significant monthly losses since the start of last season, but were kept going by the RFL money which has now run out. The £500k has just plugged the gap for another couple of months.
Next

Who is online

Users browsing this forum: Bets'y Bulls, Bull Mania, Nothus, vbfg and 56 guests

Quick Reply

   

Return to Bradford Bulls - RedAmberandBlack.net



All views expressed are those of the author and not necessarily those of the RLFANS.COM or its subsites.

Whilst every effort is made to ensure that news stories, articles and images are correct, we cannot be held responsible for errors. However, if you feel any material on this website is copyrighted or incorrect in any way please contact us using the link at the top of the page so we can remove it or negotiate copyright permission.
RLFANS.COM, the owners of this website, the RLSA (Rugby League Supporters Association) or the 100% League Network is not responsible for the content of its sub-sites, please email the author of this sub-site if you feel you find an article offensive or of a choice nature that you disagree with.
Copyright 1999 - 2014 RLFANS.COM