Clowes investment in The Rams

[Andy_Faber]

Clowes Developments accounts show they paid £13m for The Rams (and a quid for the stadium), and have lost a further £6m plus in the first nine months since ownership. There’s plenty of moaning in here about ‘the rich’ but if David Clowes wasn’t rich we’d be trudging up to Mickleover Sports for our fix, so good for him for his entreprenurial spirit, good for him for what he did/is doing for the club and community, and if he sells on for a mind boggling profit in due course good for him then too.

Still a God to me

[SithHappens]

Clowes Developments accounts show they paid £13m for The Rams (and a quid for the stadium), and have lost a further £6m plus in the first nine months since ownership. There’s plenty of moaning in here about ‘the rich’ but if David Clowes wasn’t rich we’d be trudging up to Mickleover Sports for our fix, so good for him for his entreprenurial spirit, good for him for what he did/is doing for the club and community, and if he sells on for a mind boggling profit in due course good for him then too.

Still a God to me

I've seen different reports on the stadium, said 22 million in one but he did buy it before the club as was going to rent it to whomever took over.

[ramAnag]

Clowes Developments accounts show they paid £13m for The Rams (and a quid for the stadium), and have lost a further £6m plus in the first nine months since ownership. There’s plenty of moaning in here about ‘the rich’ but if David Clowes wasn’t rich we’d be trudging up to Mickleover Sports for our fix, so good for him for his entreprenurial spirit, good for him for what he did/is doing for the club and community, and if he sells on for a mind boggling profit in due course good for him then too.

Still a God to me

Not exactly a ‘God’ to me...but we should indeed feel grateful.

Like to know what the ‘accountancy minded’ amongst us make of it all. One figure that stood out was that, at the time of the takeover, the whole squad was valued at £3.3 million whereas now we have one player valued well in excess of that. The article in the DT also stressed the financial importance of getting promotion this season and while the loss of £6m sounds massive to the likes of most of us on here it may represent ‘peanuts’, for all I know, in terms of football club ownership.

Informed thoughts?

[Geoff Parkstone]

6m is 6m in everyone's currency, but who has lost it? Is it a loss to Clowes Developments? At the time he reportedly paid 20m - was this the 13 and the anticipated 6 in losses? I'll wait till I see DCFC accounts before drawing any conclusions

[ramAnag]

6m is 6m in everyone's currency

Is it though? This is obviously your area of expertise and my area of ignorance, but research suggests that 66% of EFL clubs are operating at a loss and that the average annual loss amongst Championship clubs is £15m.
That all backs up the theory that owning a football club is the fastest way to lose a fortune...but by those standards we don’t seem to be doing too horribly especially as those figures presumably include the acquisition of all the players we needed to make us viable at the beginning of Mr. Clowes’ reign.

[Geoff Parkstone]

I'm keeping my powder dry until see DCFC accounts

[ramAnag]

I'm keeping my powder dry until see DCFC accounts

Fair enough...very wise.

[Andy_Faber]

Fair enough...very wise.

Although I am/was an accountant (I no longer pay the king's ransom to retain my 'letters') I'd sooner GP comment from a beancounter view, I'm reacting as a fan

[swaledale]

Not exactly a ‘God’ to me...but we should indeed feel grateful.

Like to know what the ‘accountancy minded’ amongst us make of it all. One figure that stood out was that, at the time of the takeover, the whole squad was valued at £3.3 million whereas now we have one player valued well in excess of that. The article in the DT also stressed the financial importance of getting promotion this season and while the loss of £6m sounds massive to the likes of most of us on here it may represent ‘peanuts’, for all I know, in terms of football club ownership.

Informed thoughts?

Actually it was a comment by a fan which suggested promotion this season was of financial importance. To which the answer is, maybe or maybe not, given there may be higher revenues but against that higher costs as better quality players are bought along with higher wages, so its not a one way street and may even be slightly negative.

The overall cost to Clowes was £54 million, because in addition to the £13.5 million to buy the club and the £19.8 million to pay off creditors, Clowes bought the stadium off MSD for £22 million in a separate transaction.

Obviously Clowes is doing all this through a company, but nevertheless he has an continues to spend millions on Derby a point worth noting when claiming that the attendances should justify paying a transfer fee for a player.!!

By the way it is estimated that putting Derby into administration and the subsequent deal with Clowes cost Mel Morris £250 million!!

[MadAmster]

Almost what I was going to say except for the reference to MSD. They didn't own the stadium but MM had borrowed £22M using the stadium as collateral. It is my understanding that MM sold the stadium to DC for £1 on the proviso that DC cleared the MSD debt.