The club’s 2008-09 accounts have now been lodged with Companies House. And in a new spirit of openness, the 35 page accounts have been made available to fans via the club’s website.
SSN and other media sources have since reported on the contents. Some of the key points highlighted are that: £45m of short-term debt was owed to the banks; the club has made losses of c.70m over the last three seasons; £14m is outstanding to other clubs; in 2007-08 the total wage bill increased by 50%; at its height the wage bill stood at c.80% of the club’s annual turnover; the contracts of two players signed in 2007-08 (one who has since left the club) will cost £34m for a current return of 32 matches played; and Dean Ashton’s settlement of his new 5 year contract, on his retirement, cost the club £5.8m.
The club’s Financial Director states, in his report, that some decisions made in 2007-08 were ill-judged and the level of expenditure did not bring the expected on-pitch success. He does, however, also report that a process of wage/cost reduction was commenced in 2008-09 to address the financial situation via player sales and the recruitment of less costly replacements.
Unfortunately I have not had an opportunity to examine the accounts first hand. I hope to rectify that tomorrow. No doubt there is other interesting information in there to be extracted and scrutinised? In the meantime, over to you for comment!
SJ. Chandos.
I found these bits interesting:
-In the course of the year the group provided match day hospitality facilities to Landsbanki Islands hf. (“Landsbanki”) in the sum of £163,600. This amount remained owing by Landsbanki at 31 May 2009. The company‟s major shareholder at the balance sheet date, Mr B Gudmundsson, together with his son, formerly had a significant interest in Landsbanki and was chairman of that company. On 7 October 2008, the FME appointed a Resolution Committee to take control of Landsbanki and, on 5 December 2008, the District Court of Reykjavik granted a moratorium to Landsbanki. Accordingly, Mr Gudmundsson and his son no longer have any interest in Landsbanki. As a result of the action by the FME, the likelihood of receiving payment of this claim appears to be remote.
Mr GJ Oddsson, a director of the company until 4 November 2008, is also a partner in Logos, a firm of solicitors, which undertook legal work on behalf of the group in the course of the year. Fees paid to Logos in respect of these services totalled £122,600 (2008 – £36,800).
Mr M Lee, a director of the company until 4 November 2008, is also a director of and controlling shareholder in Vero Communications Limited which undertook work on behalf of the group in the course of the year. Fees paid to Vero in respect
of these services totalled £143,700 (2008 – £158,500).
Also:
-We lost 1.1mill over currency movements
-and paid £67m in staff costs alone in 2008/09
This is someone's take on the accounts from another site that I thought was a valid point.,
- to all intents and purposes we were in administration! There's no real difference between the situaton we were in with C&B holdings 'looking after' us and actually being in administration. C&BH were keeping the club going, with the agreement of the creditors, until a buyer could be found – almost the text book definition of being in admin! Ultimately we was quite lucky to be taken over by C&B holdings. I hate to think what could have happened to us under BG's ownership.
I count myself edumacated as they say in the Army … it is a massive eye opener to the dire way the club has been used and abused …
In defence of ownerships past, there is no "new spirit of openness". Past years accounts have been available on the clubs website for years.
with a private company like a football club it is impossible for the fan to have an accurate handle on what's going on. Obviously there are indicators of health or otherwise-usually the ability , or not, to buy players. there is a natural tendency to believe the best. the experience of the last five years or so is however the biggest wake-up call not to believe the hype. I find it depressing that when people are skeptical and it provokes abuse. Fan websites need to be skeptical – as opposed to cynical- and that starts with the two davids. i happen to think they were the best deal in town and they deserve our support but not unqualified support. no more sweet heart interviews – we have little ability to check anything they say. I say keep our foucs on the pitch and judge on what actually happens not what they say they are going to do.
The two Davids were not my first choice to take over the club but, apart from Sullivan's habit of appearing to court unnecessary publicity, they do seem to fully understand the situation and are making the right noises about putting things right.
The cost cutting they have already put in place was an absolute necessity and there has to be more if we are going to have a healthy club in the future.
The avoidable debts they have inherited (the costs relating to Ljunberg, Dyer, Ashton etc.) really do emphasise the way the club was poorly run previously and we do seem to have started to get a grip on the situation – which is more than can be said about a number of other Premier League clubs.
Our situation along with Portsmouth, Man Utd, Liverpool and others should have a positive effect on the way clubs are run in the future. At last these clubs must surely see that you can't keep mortgaging the future against TV income and the hope that you qualify fro Europe. And the proportion of player salaries against revenue must surely be addressed at a lot of these clubs.
I'm sure that we all aware that we are not going to go out and buy international stars for quite a long time yet but that over a period of a few years we may end up with a stable club. Hopefully this will stop all the strange suggestions of who we should buy when the next transfer window opens. Premier League survival is everything for the forseeable future.
I have 'harped on' before about the signings of Davenport, Quashie, Lundburg and Dyer. These players it is now revealed have cost the club a total of £46m for a return of 47 games. We are not told what sum applies to Luis Boa Morte. Against this backdrop what sort of contract was in place with Alan Curbishley that allowed him to alledge constructive dismissal for interference in players transfers. Exactly how many centre halfs was he allowed to have before the Board were allowed to intervene (after all he had just purchased Davenport and Upson when the Ferdinand departure was 'forced upon him'). Secondly did the same person give the legal advice over the Carlos Tevez affair prior to the Icelandic arrival that has cost another £25m. This frivolous waste of money has gone on over many years (remember a certain Mr Redknapp receiving a £350k bonus for selling Rio Ferdinand at such a price). The reality check at West Ham has come just in time, and with just a small measure of good business sense there is no reason for the club not to be self financing and successful.
im scouring the ccounts but have only seen one reference to the sheff utd payment and its a combined figure so do we know exactly what we have to pay them yet?
i for one am very happy we have these 2 chaps and one chapess in controll of our club.they seem to understand and care what happens to the future of the club and dont come accross as money grabbers.
I'll agree about David Gold, and to a lesser extent Sullivan (provided he learns to shut up ) but I cannot agree about Karen Olympic Mouth Brady. I have never forgotten her comments about the Tevez saga. She is not a West Ham fan, and the sooner she goes the better.
On page 23 there's an entry that may provide the answer.
Settlement of claim for damages: £21,000,000 in the y/e May 2008 – this is likely to be the Sheffield United claim.
Compensation for loss of office and associated professional fees: £3,299,000 in the y/e May 2009 – presumably to Curbishley?
I scanned the documents and haven’t had time to read them in detail, and hopefully will over the weekend.
However, media has not really picked up on them though, just goes to show maybe are not so interesting when they can’t simply make up things
The thing that strikes me is the players we targeted during Curbs regime … Quashie 20k a week ? to Lundberg on £80k with Davenport and Dyer thrown into the mix these were abysmal signing by any standing … to think we were after Adriano for over £100k a week make the mind boggle … but the corporate abuse and money thrown at poor legal team is just as shocking … is it any wonder Duxbury walked free of charge without his two £1400 a week DB9's …
Gold and Sullivan were'nt my choice and Sullivans love of the media spotlight bloody annoys me, however I do believe we will in time be finanacially secure if not so spectacular in the comming seasons … on that note I do expect a total rebuild of the squad in the summer … and I don't expect we'll see Berahmi, Upson, Parker Green or Cole in Claret n blue … I hope I am wrong but the books need balancing and bloody quick .
What is difficult to follow in the accounts is the player sale reconcilliation? In the close season of 2008 we sold Zamora, Pantsil, Ferdinand and McCarthy as financial reality began to sink in. Curbishley resigned in protest at the latter two of these sales and then six more premiership players were moved on during Zola's first year – Bowyer, Bellamy, Etherington, Neil, Collins and Mullins. That is 10 players still playing in the top flight who Alan Curbishley had at his disposal in 2007/8 and Zola did not in 2008/9. Given the relatively low cost of the replacements it is surprising that a more healthy balance is not shown for 2008/9.
Presumably this is because of the wage still being paid to players who Zola has not benifited from – Ashton, Dyer, Quashie, Davenport, Boa Morte, Gabbidon, etc many of whom will shortly no longer be a liability. Food for thought when examining the football consequences and what Zola has had to work with.
Funny thing – getting what you want and then not wanting what you get.
For years I, along with so many other West Ham fans, was fed up with Terry Brown's sales of the academy's brightest and best products.
We then went to the other extreme, with Eggert Magnusson, and started spending money instead of cashing in on our crown jewels all of the time.
There has to be a happy medium somewhere in between doesn't there?
Personally I believe that, were it not for the collapse of the Icelandic Banking System, BG would've balanced the books in the long run. He'd already taken cost cutting steps himself and had promised that we were not going to have to sell Tony Carr's boys the moment they started to get noticed by bigger fish.
Only time will tell whether the current management can provide the balance that we need to go forward.
Can someone pop round Celtic's house and check on him? I'm getting a bit worried, the accounts have been posted for a fair few hours not and not a whisper.
Van- was thinking the same. Saw the accounts where up and hopeing for celtics view.
Ha Ha Ha! Good one Van! I must admit I too went looking for Celtics post as soon as I saw the headline. Maybe he's still writing….?
Come on Celtic mate, lets be having you!
Posting has been slow regarding the accounts which is unusual, personnally I haven't a clue, but am waiting patiently for Celtic's post and hoping its not too long…………………………
To be honest Van the report is so very boring. Apart from the stuff that makes the headlines and the stuff that we already know about who gives a damn really? Most of it might just as well be written in Russian for all it means to me. We support the team and club first and foremost for the football, the internet over the past few years has given the world and his ladder 'access' to all this stuff, but 16 post in this thread and even SJ hasn't come back with his scrutinize’ation yet – says it all for me – boring with a capital 'B'
That explains why the club can't afford hot water in the ladies toilets (BMU). In fact they haven't even got a hot tap!
Maybe Curbs will donate some of his compensation in B&Q vouchers so they can buy a Combi Boiler!
Australia has just unearthed the next wing sensation at 19 years old his Name Zola is Tommy Oar who plays for Brisbane Roar a Harry Kewell type player who the 2 Dave,s would cost nothing to sign just made his Aussie debut a superstar in the making Tommy Oar sign him sod the accounts!TOMMY OAR remember that name!
All very quiet around West Ham this week. Makes a nice change really doesn't it?
I'm really hoping that Carlton gets a start tonight. We know what Rooney and Defoe can do. It will be a fight between Heskey, Crouch and Cole as to who will be the starter for the World cup.
Personally I wouldn't even take Crouch and I certainly wouldn't take Heskey let alone play him. Carlton has every attribute for a player to make a big impact on the World stage. I just have a horrible feeling he will start with that lanky giraffe tonight.
I have to say I feel sorry for Carlton. What must he be feeling? He knows along with the rest of England that he is far better than Heskey and Crouch but does not get the opportunities that they do. Let's hope that changes tonight.
For the World Cup I would take Rooney, Cole, Defoe and Agbonlahor, in that order.
Also- Does anyone know, because I surely don't, what every manager sees in Wes Brown? His performances have been calamitous throughout his career and he still gets in no matter what. Goes against what Capello has espoused all along regarding form.
One more point. The left back position. Firstly, Carlton Cole will be fit in time. The press just like to focus on the negatives instead of the likely positives(we at West Ham have bore the brunt of this negativity many times). But who should be his understudy? I think the answer lies already in the squad. Gareth Barry.
If Cole doesn't make it then Barry can play there and Milner, who is a far better player than Barry anyway, can slot into midfield. I would rather have Hargreaves but he is unlikely to be fit.
Warnock and Baines are jsut not up to the job
Sorry, Andy…have to disagree on a couple of points. Personally I can't see CC getting on the plane for South Africa.
Rooney is obviously nailed on and I can see Defoe and Crouch being selected because of their experience playing alongside one another and Pompey and now Spurs.
Heskey has been Capello's first pick since game one and to be honest I don't see a major case for Cole to replace him. I don't see him scoring more goals than Heskey. They both hold the ball up well but I believe Heskey reads Rooney better, and that will be key if we are to do well out there.
Cole's lethargic, low-energy style also counts against him for me. He plays the old soldier too often and wouldn't get the nod from me.
As a final point, can't agree with your assessment of the press negativity about Ashley. All the reports I have read and heard have all quoted experienced surgeons and physios who have cast doubts on Ashley's condition and chances. That seems fair and informed reporting to me.
Press paranoia is certainly alive and well here.
Pip Pip…I've stuck £20 on Egypt 0-1 tonight. Will be happy to lose, though.
whilst l know that this has not got anything to do with the above, it could be a new song to sing whilst away at chelsea!!!
http://www.youtube.com/watch?v=4WqOOPhxHmE
Tidy boiler!