Last years loss was clearing debt and huge improvements to the stadium and youth set up, painted seats, players lounge area! No debts for the club whatsoever where as there where plenty when SO'C took over... Come on not hard is it!

Quote: Starbug "strange then that it was the Vat that refused the payment plan which ultimately led to London Broncos going into administration I wonder who all those Vat cheques I used to sign went to ?'" It is strange mate... Rugby league clubs qualify for exemption from VAT!!!!! customs.hmrc.gov.uk/channelsPort ... P529_37394 As you will see no VAT charged by clubs on entry fees....maybe you should have known what you were signing? Just for the record VAT is a form of tax not a Governing Body...that would be the HM Revenue and Customs...

Quote: Starbug "strange then that it was the Vat that refused the payment plan which ultimately led to London Broncos going into administration I wonder who all those Vat cheques I used to sign went to ?'" It is strange mate... Rugby league clubs qualify for exemption from VAT!!!!! customs.hmrc.gov.uk/channelsPort ... P529_37394 As you will see no VAT charged by clubs on entry fees....maybe you should have known what you were signing? Just for the record VAT is a form of tax not a Governing Body...that would be the HM Revenue and Customs...

As a VAT registered company you only pay VAT on supplies/services with a VAT rating, if you read the regulations you will see that ALL gate receipts are VAT excempt. Please dont reply to this as your going to dig yourself deeper as you have no idea of what I do in this small world of yours.

I notice you have changed your post , maybe you should read things properly , including VAT on sports tickets

I have no interest what you do , but you are still wrong , VAT is chargeable on tickets for professional sporting events

I know one thing...I am man enough to stand corrected. Just re-read sec 4.

starbugs right on that, the link you posted to me seems to have no relevence to a pro sports club in terms of revenue. it refers to a sports club having to pay fees to enter compititions.

so if the rfl take money from all clubs to enter the challenge cup, then this money would be exempt from vat.

if you don't believe it, just watch how many teams advertise the fact season tickets bought before january can beat the vat rise.

Liquidity is the best indicator on anyones books.

Some players must be on awful Wages at Widnes to achieve that profit. Your gates have dropped around 1k this season !

Starbugs right about the ticket element too.

Starbug

I have to say I share your surprise about these accounts. I cannot say whether these have been audited or reviewed by a reputable accounting firm - does anyone know?

But, given that I am a Chartered Accountant myself, let me make a few comments:

1) Spending money on plasma screens and the stadium should have had little impact on last years results. These items should be capitalized on the balance sheet and the expense recognized over the next few years - so if anything you would expect this years results to be WORSE as you start to see the effect of the depreciation.

2) Clearing debt should have no effect on the profitability of the company. If you have a debt, you pay it off with cash, it has nothing to do with profit or loss, except that of course you are saving interest on the debt you have. Its simply a balance sheet issue.

3) $1M profit on $2.5M turnover is a 40% net profit rate - in this economic climate and in the sporting sector it is simply remarkable. Without looking at the accounts I cannot really start to assess how this was achieved, but based on the stats discussed in this thread, it doesn't seem to be coming through the turnstiles...whether it is sustainable remains to be seen..

mapleyther

The salary cap is £300K. If you believe the revenue figure of £2.5M, the players wages are a fairly minor expense overall.

the club will own a lease to use the stadium, the expenses paid on the stadium would be treated as improvements to leasehold and capitalised and then depreciated over there useful economic life

Perhaps the club would have shown a profit in the 2009 figures, were it not for the restructuring, which took place?



As we are dealing with a tax year which runs from April 2009 – April 2010, this means that the majority of the figures will be made up from the 2009 season.