New Balance Sheet

[sinophile]

I'm no expert, but a couple of points. Firstly the Balance Sheet is at a given point in time, in this case 30th June 2023. It's already 7 months out of date. We don't know how much the club owes now. In any case, as the Balance Sheet shows what the club owns (it's assets) and where the finance came from to pay for those assets(the liabilities), if the owings are not being claimed immediately, or in the near future, there is no issue.

Secondly, it is a not a statement of profitability. That is shown in the profit and loss account which reflects a period for a year leading upto its date of production. Sustainability is different to profit, although any business would need to be profitable in the long run, whenever the long run is.

[60YearsAPie]

Sustainability is different to profit, although any business would need to be profitable in the long run, whenever the long run is.

How do you define sustainability? Notts County FC Ltd is sustainable as long as our owners lob in approx £3m each year to cover our losses?

[Old_pie]

How do you define sustainability? Notts County FC Ltd is sustainable as long as our owners lob in approx £3m each year to cover our losses?

Exactly, or at least that the owners fill any shortfall which may be higher or lower in future years.

As has been covered before, and as I have said, it is the cost to the owners of their "season ticket". Put it another way, it is £1.5m each and assuming it allows them access to away games as well as home games, say 50 over the season that's £30k a seat!

Sustainable does not mean profitable. If it had meant profitable then they would have used profitable. It means what they are prepared to and can sustain. At some point if the club is sold on as a going concern (and not under the threat of closure from the HMRC etc) then the amount of debt, and shareholding, become a bargaining point in the valuation and the Bros will get none/some/all/more than their money back. Trew and AH acquired the club not by paying money back to the previous owners, but by saving the club from bankruptcy by paying off HMRC and the milkman etc. (Trew might have screwed a bit more out of AH).

To the Bros I suspect this whole thing is about a hobby that is costing them a couple of million squids a year which may or may not break even for them. But as long as they can sustain the input and get pleasure from it then it's their money they are putting in to fill any shortfall, and their game in seeing how well their stats based system can be used to run a football club.

[OchPie]

Secondly, it is a not a statement of profitability. That is shown in the profit and loss account which reflects a period for a year leading upto its date of production.

Gotta stress this. You can get strong hints as to the profitability of a business from its balance sheets over time, but that will generally not tell you the actual numbers.

[1955pie]

Thank you 60Years and Evesham.