The Debt.

[twilight]

I felt slightly emotional reading parts of the official statement.
Thank you Mr. Davies, from the bottom of my heart

[danardif1]

Thanks Mr Davies for allowing us fans to see some truly great moments because of your financial support of our little club. We are now a nearly debt-free club that fully owns it's modern stadium and training ground and I would say we are an attractive proposition for new owners because of this.

Investment in the playing and coaching staff is desperately needed that is clear, and if that were to happen things on the pitch would hopefully improve, bums would start to fill more seats and things would look that much more rosy. I don't think most fans EXPECT us to be in the Premier League, but upper reaches of the Championship and the lower half of the Premier League is where Bolton should be really, not propping up much smaller (yet obviously better run, fair play to them) outfits like MK Dons, Rotherham et al.

[jetsetwilly]

What else was he going to do? Nobody would buy the club with debt. He has still done pretty well out of his time here. Making around 10m profit as stated by Trevor Birch. Let us not get carried away. This debt is written off IF we have a buyer. Right now this press release may well have been to try and tempt a buyer as the 2 current bids are allegedly of little substance. We are still in the crap until a buyer is found

[BWFC_Insane]

What else was he going to do? Nobody would buy the club with debt. He has still done pretty well out of his time here. Making around 10m profit as stated by Trevor Birch. Let us not get carried away. This debt is written off IF we have a buyer. Right now this press release may well have been to try and tempt a buyer as the 2 current bids are allegedly of little substance. We are still in the crap until a buyer is found

You are going to have to explain how you work out he's made a 10m profit......

[Worthy4England]

What else was he going to do? Nobody would buy the club with debt. He has still done pretty well out of his time here. Making around 10m profit as stated by Trevor Birch. Let us not get carried away. This debt is written off IF we have a buyer. Right now this press release may well have been to try and tempt a buyer as the 2 current bids are allegedly of little substance. We are still in the crap until a buyer is found

You are going to have to explain how you work out he's made a 10m profit......

What Trevor Birch stated was that ED's net loss was £175m of the £185m he's gifting to the Club. Not sure where the £10m profit has come from...

[Beefheart]

What else was he going to do? Nobody would buy the club with debt. He has still done pretty well out of his time here. Making around 10m profit as stated by Trevor Birch. Let us not get carried away. This debt is written off IF we have a buyer. Right now this press release may well have been to try and tempt a buyer as the 2 current bids are allegedly of little substance. We are still in the crap until a buyer is found

...a little bit of knowledge...

He's basically spunked away £175m, a lot of it on the likes of Zat Knight and Sean Davis. For those who think it's a tax fudge then yeah if you spend £175m on a football club you aren't going to pay any tax on that but you're still left with £175m less than you had, and less than if you just paid the tax you actually owed. You'd be better off, oh I dunno, just living in the Isle of Man and not paying very much tax . Investing in a football club would be the last thing you'd want to do.

[bobo the clown]

What else was he going to do? Nobody would buy the club with debt. He has still done pretty well out of his time here. Making around 10m profit as stated by Trevor Birch. Let us not get carried away. This debt is written off IF we have a buyer. Right now this press release may well have been to try and tempt a buyer as the 2 current bids are allegedly of little substance. We are still in the crap until a buyer is found

You are going to have to explain how you work out he's made a 10m profit......

What Trevor Birch stated was that ED's net loss was £175m of the £185m he's gifting to the Club. Not sure where the £10m profit has come from...

Wow. It just gets worse.

The disappointing thing is that everyone over 18 gets the vote. There should be some qualification level.

Conspiracy theorist or just plain, old-fashioned thick-as-two-short-planks ??

[Hoboh]

Now with a large Euro win purchasing the club does not seem too bad after all!

[Jugs]

Good news

[Enoch]

Now with a large Euro win purchasing the club does not seem too bad after all!

Be sure to bury a couple of mil at the bottom of the garden, just so as the creditors don't get it when the rest runs out.

[jetsetwilly]

Very simple maths really. He is 'owed' £185m

He writes off £185m that is owed to him (remember, this is not money he has put in, it is money he is owed)

His total losses are £175m (This inlcudes the £185m he is 'owed)

Therfore, we can conclude that he is currently on a £10m profit.

Not sure if the records will ever come out, but he has taken more out in loan interest than he has put in. The £15 sale price covers his initial investment. So his total profit is £10m.

A guy worth £40m does not put £185m cash into a business, tax write off or anything else.

If you borrow £1000 from the bank, you will 'owe' the bank £1000 + whatever the interest is, say £400. The bank never leant you anymore than £1000. If you default on the loan, the bank will claim to have lost £1400 but never gave you more than £1000 to begin with .

This is the same as what we owe Eddie.

I am grateful he stepped in, saved the club and allowed us to spend the SKY money on a great period in our history. But do not let anyone tell me that he has put £185m into this club.

[Andy Waller]

Very simple maths really. He is 'owed' £185m

He writes off £185m that is owed to him (remember, this is not money he has put in, it is money he is owed)

His total losses are £175m (This inlcudes the £185m he is 'owed)

Therfore, we can conclude that he is currently on a £10m profit.

Not sure if the records will ever come out, but he has taken more out in loan interest than he has put in. The £15 sale price covers his initial investment. So his total profit is £10m.

A guy worth £40m does not put £185m cash into a business, tax write off or anything else.

If you borrow £1000 from the bank, you will 'owe' the bank £1000 + whatever the interest is, say £400. The bank never leant you anymore than £1000. If you default on the loan, the bank will claim to have lost £1400 but never gave you more than £1000 to begin with .

This is the same as what we owe Eddie.

I am grateful he stepped in, saved the club and allowed us to spend the SKY money on a great period in our history. But do not let anyone tell me that he has put £185m into this club.

Personally, I think there's something fishy here too. Someone like Davies, with a very, very good business head but not billions to throw away has to have been gaining something from this. (When I say gaining, I mean "not losing as much as he stood to")

[Prufrock]

Very simple maths really. He is 'owed' £185m

He writes off £185m that is owed to him (remember, this is not money he has put in, it is money he is owed)

His total losses are £175m (This inlcudes the £185m he is 'owed)

Therfore, we can conclude that he is currently on a £10m profit.

Not sure if the records will ever come out, but he has taken more out in loan interest than he has put in. The £15 sale price covers his initial investment. So his total profit is £10m.

A guy worth £40m does not put £185m cash into a business, tax write off or anything else.

If you borrow £1000 from the bank, you will 'owe' the bank £1000 + whatever the interest is, say £400. The bank never leant you anymore than £1000. If you default on the loan, the bank will claim to have lost £1400 but never gave you more than £1000 to begin with .

This is the same as what we owe Eddie.

I am grateful he stepped in, saved the club and allowed us to spend the SKY money on a great period in our history. But do not let anyone tell me that he has put £185m into this club.

Even by your own, ahem, "maths", he's made a £10m profit minus a f*cking £175m loss. So, not a profit at all. According to you he's stuck in £165m, not £185m.

What a cheap bastard.

[Beefheart]

'Very simple maths really. He is 'owed' £185m

He writes off £185m that is owed to him (remember, this is not money he has put in, it is money he is owed)

His total losses are £175m (This inlcudes the £185m he is 'owed)

Therfore, we can conclude that he is currently on a £10m profit.'

Siiiiiiiiiiighhhh. Alright, let me explain it to you.

What the case actually is that every year the club makes a loss, an average of c£20m per year for the last 5 years. Now, in order for the club to pay players wages and other costs that money needs to come from somewhere. Eddie has been kind enough to cover that shortfall, the double entry is then as follows:

Dr. Cash £20m
Cr. Loans £20m

In this scenario, Eddie Davis is currently £20m out of pocket.

As and when the interest is charged (there hasn't been any charged for a few years), one of two things can then happen.

Either a) The Interest (let's say 10%) gets paid to ED.

Cr. Cash £2m
Dr. Interest Expense £2m

In this scenario, Eddie Davis is now out of pocket by just £18m, the lucky bastard, what a swindle!

Or b) The interest is tacked on to the existing loan amount.

Cr. Loan £2m
Dr. Interest Expense £2m

In this scenario, Eddie Davis gets no cash back.

Now, here's the important bit. If Eddie Davis does receive the interest as cash. Then well done, he has paid himself back money that he spent. The bastard! But, next year we lose another £20m. So, now he's £38m down. But he get's £3.8m back in interest, so he's only £34.2m down....but then he loses another £20m. Rinse and repeat.

There is absolutely no way he has made a profit, he's not saved anything on tax, except maybe his IHT as he's down about £175m. The absolute fecking bastard.

[jetsetwilly]

Maybe it is too difficult for some of you to understand.

A man worth £40m can't lend somebody £185m

He didn't pay to cover the shortfall. There only appeared to be a shortfall as he was owed this interest payment. The income from sky, gate money etc was always enough to cover wages. Look at the record books. The mystery costs (money taken out by Moonshine) made the club operate at a loss. He underwrote this amount (didn't take his cut but converted money owed to debt).

The money he is writing off was money that was owed to him that he never took, so in one sense you can argue he has 'lost' £185, in reality he never had the money and had he insisted on taking it at the time, the club would have gone bust and cut off his nice little earner from interest repayments.

I think those who are feeling sorry for him are doing a great dis-credit. He is a clever guy. Neither he, nor his family are in rags. They live a wealthy lifestyle on that back of his £40m wealth. A wealth that was dipped into to buy the club, and a wealth that will be topped up again when he sells.

Is it that people can't do simple maths or maybe don't want to admit to it?

I don't think Eddie tried to take anyone for a ride. I appreciate what he has done for us. But the uneducated, thinking he can magic up £185m, might well have benefitted from attending the school he built to learn simple maths.

[jetsetwilly]

Very simple maths really. He is 'owed' £185m

He writes off £185m that is owed to him (remember, this is not money he has put in, it is money he is owed)

His total losses are £175m (This inlcudes the £185m he is 'owed)

Therfore, we can conclude that he is currently on a £10m profit.

Not sure if the records will ever come out, but he has taken more out in loan interest than he has put in. The £15 sale price covers his initial investment. So his total profit is £10m.

A guy worth £40m does not put £185m cash into a business, tax write off or anything else.

If you borrow £1000 from the bank, you will 'owe' the bank £1000 + whatever the interest is, say £400. The bank never leant you anymore than £1000. If you default on the loan, the bank will claim to have lost £1400 but never gave you more than £1000 to begin with .

This is the same as what we owe Eddie.

I am grateful he stepped in, saved the club and allowed us to spend the SKY money on a great period in our history. But do not let anyone tell me that he has put £185m into this club.

Even by your own, ahem, "maths", he's made a £10m profit minus a f*cking £175m loss. So, not a profit at all. According to you he's stuck in £165m, not £185m.

What a cheap bastard.

Erm, got a calculator handy.

Man pays £15m to buy a club. Puts in, lets say £10m at various times.
Man gets back £20m in interest payments over time. Sells said club for £15m.

Total = £10m profit.

Now, this mystical £185m that he is owed. That gets written off. Minus the £10m profit he has made. = £175m loss.

So if you are taking into account the money he never had but he is owed, yet he has lost £175. If we are talking real money that he actually had, he makes £10m profit.

Still with me? Keep up

[Worthy4England]

I'm starting to think you're here on a wind-up. If you hadn't posted genuine Bolton stuff over the years, I'd be convinced of it.

We have £183m of debt. That's money we've spent on running the club. Some of it is interest on loans. Nothing like twice the cash that was put in. Go look at the Accounts instead of making total shit up (and yes I know Accounts only show what folks want you to know - but they're the best guide we have and way better than your "lets make up shit" approach.

You have never once answered how you know Eddie Davies' net worth or spending power other than you've previously quoted a guessed at, 2008 figure - which I think you guessed at £60m, that by your weird reckoning (despite him making all this money out of BWFC has never increased since 2008). In fact from the post above, it's gone down £20m...

If you add up all the interest payments we've made since 2000 (at which point the interest payments were being made to Banks rather than ED, they don't add up to anything like £183m.

[Beefheart]

Maybe it is too difficult for some of you to understand.

A man worth £40m can't lend somebody £185m

He didn't pay to cover the shortfall. There only appeared to be a shortfall as he was owed this interest payment. The income from sky, gate money etc was always enough to cover wages. Look at the record books. The mystery costs (money taken out by Moonshine) made the club operate at a loss. He underwrote this amount (didn't take his cut but converted money owed to debt).

The money he is writing off was money that was owed to him that he never took, so in one sense you can argue he has 'lost' £185, in reality he never had the money and had he insisted on taking it at the time, the club would have gone bust and cut off his nice little earner from interest repayments.

I think those who are feeling sorry for him are doing a great dis-credit. He is a clever guy. Neither he, nor his family are in rags. They live a wealthy lifestyle on that back of his £40m wealth. A wealth that was dipped into to buy the club, and a wealth that will be topped up again when he sells.

Is it that people can't do simple maths or maybe don't want to admit to it?

I don't think Eddie tried to take anyone for a ride. I appreciate what he has done for us. But the uneducated, thinking he can magic up £185m, might well have benefitted from attending the school he built to learn simple maths.

How do you know what he's worth? What his annual income from his various interests might be?

On every other point you're just wrong.

https://companycheck.co.uk/company/0033 ... l-accounts" onclick="window.open(this.href);return false;

In each of the last 5 years the club has made an OPERATING loss. The club spends more money than it makes before you take into account any financing arrangements. So the debt, as I said, is primarily due to cash injections made by Eddie Davies.

The money owed to him is money he owes to himself (or Moonshift Investments, a company owned by him). This is why he's never asked for it, and why he's writing it off if the club gets bought. It's money he knows he could never recover. You are thick.

[Bijou Bob]

I'm bored of this now. I don't give a tuppence Feck who owes who what, nor I suspect, does it matter much. We're almost debt free as a club, if a buyer can be found and declaring g that the debt has been written off is a "Come and buy us" shout out into the ether. Let's hope it's successful.

[Gary the Enfield]

I'm bored of this now. I don't give a tuppence Feck who owes who what, nor I suspect, does it matter much. We're almost debt free as a club, if a buyer can be found and declaring g that the debt has been written off is a "Come and buy us" shout out into the ether. Let's hope it's successful.

Bored too. Tell you what let's all have a singsong. To the tune of 'Knees up Mother Brown'

"There's no fecking debt,
There's no fecking debt,
There's no fecking
There's no fecking
Theres no fecking debt!"