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Villa Not Insolvent - Technically Or Any Other Way

Villa Not Insolvent - Technically Or Any Other Way

There was an article on the fourfourtwo site this morning www.fourfourtwo.com questionning whether Villa, amongst others, were technically insolvent or not.

Usually I'd have done an article without getting the facts straight but this time I've been far more sensible and suprisingly for me, pro-active! There is a thread in our forum Is Aston Villa Insolvent?? >> Click Here (adult language) where the posts mostly rubbish the report, quite rightly!

I've spoken to sources at the club (hark at her) today and to be fair was told that the club can't comment on total rubbish and this is total rubbish.

Villa is nowhere near insolvent, either technically or otherwise

It seems strange in this list you have some clubs who are so obviously on the rocks and needing to sell, as well as some piled sky high with debt, so much so that the fans have protested against their new owners, and yet you get a great club with a great owner like Randy Lerner who has brought NO debt at all to us, and they come out with this to worry fans.

A loose definition of being insolvent is not being able to meet your liabilities or having negative equity. We don't have negative equity as can be seen in the company accounts which are on public record. May 07 we had net assets of £35.1m and from what I can gather they'll have risen, not dropped for the 2008 accounts. We are also more than able to meet all liabilities, what do the people who make these lists up think is done with the tv money for a start, let alone the deep pockets of Randy? And if we were in financial trouble, do they really think we'd give away free sponsorship to the charity hospice Acorns? (www.acorns.org.uk/astonvilla)

To re-assure I've spoken with an accountant also today, he pointed out, exactly the same as all other companies, accounts have to be approved by auditors.

Villa are in fine shape, in good hands and on the march upwards.


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Writer:J P Fear
Date:Wednesday January 7 2009
Time: 5:56PM

Comments

0
Most important part of that article is the link to Acorns...! Oh and you can play the little video as well, give me a dime if you do!
The Fear
07/01/2009 18:01:00
0
Need to be a bit careful here as a couple of statements in the article are off. 1) "And if we were in financial trouble" - nobody is saying Villa are in financial trouble, this is a "technical" thing, 2) "...the deep pockets of Randy" - totally irrelevant to the report, Randy's own value means nothing in relation to this.

I do find the figures slightly surprising, but the study was compiled by one of the leading organisations in their field in the world, and they would be very careful to ensure they didn't get any negative publicity out of it.
The Real Neil
07/01/2009 18:08:00
0
been very careful Neil, got my facts straight today, we aren't in any way near insolvency technically or otherwise.
The Fear
07/01/2009 18:11:00
0
Oh and the article is a worry to fans, it is suggesting financial problems and not being well run. Agree re: the report that the deep pockets don't show up but they are important for the fans piece of mind as a winner like RL would not buy the club and then allow it to run into trouble. Some of the clubs in their report above us are on the verge of disaster and as you know, two at least are ladened with their new owners debts.
The Fear
07/01/2009 18:13:00
0
True. But let's not forget Randy acquired £60million in debt, of sorts, when he raised the funds to acquire Villa. If he were to be run over by a bus tomorrow, would the club have to repay his family's trust that cash or not?
The Real Neil
07/01/2009 18:19:00
0
My understanding is there is no debt leveraged on the club Neil. Not that I'm in a position or should speculate on the inner workings of the Trusts etc. But I'd bet my house on that. Think I'll leave it at that sir!
The Fear
07/01/2009 18:22:00
0
What a load of Tosh. Manure should be much lower and Liverpool will possibly have to pay their first instalment on their loan next month. How do they come to these scores anyway????
Villan444
07/01/2009 18:59:00
0
In this economic crisis, anything is possible. And i doubt the club would announce it even if they were. Lets just see what happens........
young_jonah
07/01/2009 19:08:00
0
I agree that a reputable company couldnt publish figures that they have plucked out of thin air but as the Americans mortgaged Anfield to buy Liverpool who are now saddled with massive debt so something doesnt add up. Funnily enough though I was talking the other day about or seemingly endless pot of money and where its actually all coming from. Transfer fees are higher and you can bet our wage bill has increased once again so the extra TV revenue will be minimal when those two figures are taken in to account. A big hinderence for us is that we only sell out 50% of games at home and we'll never have the full backing of fans to increase the capacity to compete financially with Man U or Arsenal who rake it on on gate receipts and obviously their worldwide brand.
themightyatom
07/01/2009 19:16:00
0
All of our money has come from RL and is more than likely loaned ot the club at a very low APR, but not as low as the rate RL has obtained when borrowing the money. RL own MBNA, which is a bank and thus has the ability to loan money to him for probably next to nothing. That is how RL will make his money from Villa so that he can recoup his investment without taking money from the club. If RL walked away tomorrow and an uber rich investor came in we would struggle to operate. We certainly would not have any money to purchase players. I doubt RL will and that is why we are only technically insolvent, in the same way that Chelsea, Man Yoo, Liverpool and Man City are.
lukemarson
07/01/2009 19:52:00
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