A Koc & bull story?

Brown

J BLOCK said:

Wouldn't surprise me If there are a few offers on the table, we are a very attractive business and it was a shrewd move by TJ to get us when he did

On the basis we're a Championship football club in London with a modern stadium and a good reputation this is true, however the underlying numbers are much less positive. We lose millions of pounds each year (probably at least £5m this season) and the demand for tickets (I.e depth of support) is weak next to the four biggest London clubs, meaning associated revenue is likely to remain much lower. The demand for hospitality and to use ancillary facilities is also much weaker.

In short, the only way to make a profit out of CAFC is to get promoted without spending too much money in the meantime, which I suggest is the current imperative and will remain the situation unless future owners are motivated by long-term success on the pitch. It's a money pit, which is not usually the definition of an attractive business.

I have always found it amazing that anyone would think that owning a football club is anything other than a "money pit". It's either an ego trip or a very poor investment.

oohaahmortimer said:

ShootersHillGuru said:

I have always found it amazing that anyone would think that owning a football club is anything other than a "money pit". It's either an ego trip or a very poor investment.

exactly , just all very weird considering the considerable length some people go to avoid tax why they would piss any money away on a football club

For exactly that reason. A tax write-off.

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PragueAddick said:

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not sure i agree but can see your point

Surely that doesn't work though? If I have a company that makes £10million profit and I've got to pay 20% tax on profits, then my net profit is £8million and my tax payment is £2million. If I buy a football club that's losing £5million a year, then yes, my tax bill halves to £1million, but then also does my net profit, down to £4million.

The only reason I'd want to do this is if I was making a larger than expected profit this year, and don't expect to repeat it next year. By lowering my gross profits this year I'll be lowering my tax burden for the next 2 years, and if my profits are high enough, then the £5million loss on the football club could conceivably be less than the additional tax burden. But over the medium to long term, having a loss making item in my accounts is just going to lose me money.

What have I missed that Prague has deleted? Intrigued!

Anyone care to elabourate?

Davo55 said:

oohaahmortimer said:

ShootersHillGuru said:

I have always found it amazing that anyone would think that owning a football club is anything other than a "money pit". It's either an ego trip or a very poor investment.

exactly , just all very weird considering the considerable length some people go to avoid tax why they would piss any money away on a football club

Same reason most of us would, if we were rich enough. Call it an ego trip if you like, but which one of us wouldn't give their right arm to be calling Chrissie Powell in to our plush office at the Valley and telling him he had a new, lucrative contract and £10m to spend in January with the aim of getting us promoted this season. Christ, I'd give my right bollock for that.

But you're a Charlton fan

Henry Irving said:

Davo55 said:

oohaahmortimer said:

ShootersHillGuru said:

I have always found it amazing that anyone would think that owning a football club is anything other than a "money pit". It's either an ego trip or a very poor investment.

exactly , just all very weird considering the considerable length some people go to avoid tax why they would piss any money away on a football club

Same reason most of us would, if we were rich enough. Call it an ego trip if you like, but which one of us wouldn't give their right arm to be calling Chrissie Powell in to our plush office at the Valley and telling him he had a new, lucrative contract and £10m to spend in January with the aim of getting us promoted this season. Christ, I'd give my right bollock for that.

But you're a Charlton fan

True, but same applies (with less emotion) if I were rich enough to buy, say, Reading.

Those speculating about the potential new owners of Charlton should note news items today suggesting Nottingham Forest who were purchased a few months ago by cash rich middle Eastern businessmen is experiencing cash flow problems. They have denied there is a problem but there has been a re shuffle at the top.
Be careful what you wish for.

ShootersHillGuru said:

JohnfromNorfolk said:

Those speculating about the potential new owners of Charlton should note news items today suggesting Nottingham Forest who were purchased a few months ago by cash rich middle Eastern businessmen is experiencing cash flow problems. They have denied there is a problem but there has been a re shuffle at the top.
Be careful what you wish for.

I guess it depends who buys it. If and it's a big if the Koc's are involved then a cash flow problem is highly unlikely.

ShootersHillGuru said:

JohnfromNorfolk said:

Those speculating about the potential new owners of Charlton should note news items today suggesting Nottingham Forest who were purchased a few months ago by cash rich middle Eastern businessmen is experiencing cash flow problems. They have denied there is a problem but there has been a re shuffle at the top.
Be careful what you wish for.

I guess it depends who buys it. If and it's a big if the Koc's are involved then a cash flow problem is highly unlikely.

We would have been over the moon if Lehman Brothers of New York had purchased us in 2007.

JohnfromNorfolk said:

Some of those contributing to this thread have obviously been smoking those funny Turkish cigarettes while eating Turkish delight. A combination that induces mind-blowing illusions

This