Quote: Miserybusiness "Can you explain the financials in laymans terms ie would you score 4.5 for solvency and lower than that for the level of debt or is it 1m x more complicated ? if we have a heavy burden of debt...when is it due and what are we doing to repay it ?'"
Its pretty straightforward how our score is made up and to give the RFL some credit the finance part for the scoring isn't that complicated.
With us scoring 0.55 points that means we have scored 0.3 points for having between 50 and 70% non cenralised turnover on the average of the last 3 years. The higher percentage you have for this the less reliant you are on the central funding. Again because of the scoring we know that Bradford and Fev both scored the maximum 0.75 points for this.
The other 0.25 we presume has to from the adjusted profit as you get those points as long as you are not running at an average loss of over 1m for the previous 2 years and there is just no way a club of our size could run at that sort of loss. So we can be pretty certain that is how our points are made up.
So for the other sections we miss out on having turnover of over 500k before central funding. I doubt we are anywhere near on this but Bradford should be over it and fev maybe close on this with their crowds. Without either a big uprise in crowds or some major sponsorship we aint scoring.
Next up we have owner investment and anything over 100k on the 3 year average scores 0.25. This one should be the easiest one for us to get points on as long as the new owners fulfill promises that they have seemingly made.
Last one is balance sheet strength where anything over £1 will gain you 0.25 points. It not unusual for sports teams to have negative balance sheets so this really does not tell us much but when taken in to context with the rest of the gradings for the finance section its easy to see why there may be concerns.
Fevs score you can pretty much work out how they have scored but Bradford's score is almost unbelievable for them to score 2.75 points. there is no way that they have a turnover of over 1.25m so they have to fall in to the over 500k region for 0.5 points. We already know they score full on the % variation of that to take them to 1.25 points. Now that means they then have to score full points on the remaining sections which I would be amazed at. They have to have shown a profit of over £1 over the average of 3 years, do we think that has happened? They need owner investment of over 500K in 2 of those 3 seasons as well. This could be possible as its a huge money pit and someone has pumped some cash in to them this season but has it been the same in previous seasons? And the last one they score maximum points on is having a balance sheet of over 100k, I mean really?
I would be amazed if Bradford's score is anywhere near this when things are audited next season.
