Quote Saint Simon="Saint Simon"If 2 teams are carrying £41 mill debt between them, it has to be including stadium financing. Saints had Zero debt going into last season, but will be paying what equates to a mortgage of £20 million for the stadium. Thats not real debt as the directors have paid for it and will never ask for it and can never get it back, but technically is a debt, i assume Warrington have the same situation'"
This gets to the core of the issue - there are accounting matters that means you have to be VERY careful with how you deal with this, and what conclusions you arrive. I haven't looked at any SL clubs account for a few years (previously needed to due to the job I had), but there's very limited information in them, as clubs can take a lot of exemptions due to their size (they are not 'big' companies as classified in law). With access to only publicly available information, I would suggest if would be nearly impossible to draw an accurate assessment of the health of the clubs' finances from this.
I would disagree on a technical/legal point that Saints' debt isn't not 'real' (I would say it most certainly is), but I take your point. There are different types of debt, and this kind of asset backed debt is less of an issue that that arising from cumulative losses. I'm not fully up to speed on Saints' specific situation, but I would be surprised if the Directors have bank rolled this, and expect these are external loans - though I thought Tesco were involved, and paying for a large portion/funding was coming from sale of KR, so maybe Saints aren't carrying any debt re the new stadium? I'm pretty sure Warrington aren't, as Tesco paid for our ground
Also, lots of sports clubs end up in the situation where an owner who spends money is not technically spending his own money, but is instead giving a loan to the club (or rather the company that operates the club) who then spends it. (There are other ways to do this of course, but this is one possibility - how this is actually done will most likely depends on the tax affairs of the owner/club, and other factors such as impact on credit ratings, etc). This will show as debt in the clubs book though. Whether they ever have to repay this or not is a moot point, and ultimately depends on how the current owners exit the business. Without having a lot of (private) information, it's difficult to say whether there is an issue at a particular club, and ever single club will be unique here.
It's a complicated area - no doubt the BBC will make this clear to the lay person who watches tonight, and they won't be running with irresponsible headline grabbing tabloid journo type flannel...