Thanks to Since 62 aka Keith Morgan Our Resident Accountant
" UPDATED "
The annual conversions of £8m a season have been taking place , but the main conversion of £68m pledged in February 2016 has not yet happened. This is an ongoing topic on the agenda for meetings between the club board and the Trust.
In terms of the overall club financial position , I have no more specific information than anyone else outside the club`s senior management. However , clearly there have been big ongoing efforts to significantly reduce the wage bill burden both last season (which will be reflected in the May 2017 accounts when they are published) and for the current season.
A major financial issue that the club faces , and which it is seeking to address, is the fact that this current season is the last one in which it will benefit from "parachute" payments , so a loss of income of in the range £10m to £15m (depending on who gets promoted/relegated etc) will have to be planned and budgeted for in season 2018/19.
Debt to equity - where are we now?
Seeing Vincent Tan at the game yesterday reminded me that it's been quite some time since we heard anything about the promised reduction of debt/conversion to equity by the owner.
Does anyone know where we are with these plans exactly at the moment? I am not wanting to criticise or start another thread having a go at the club or the owner but I'm genuinely interested in where we are as far as those often stated aims are concerned.
The last I seem to remember is there being some difficulties with the Malaysian government authorising the release of funding for projects outside the country (or something like that!) and also a potential problem with Financial Fair Play which meant that only a certain amount of debt can be reduced within a certain time scale.
There was talk at one time of the club being almost completely debt free within about three years but there seems to have been little or no progress on this recently, at least none that has been made public.
Could somebody with a bit of financial knowledge (Keith Morgan perhaps if you're reading Keith ) explain where we are at the moment financially and whether there is any current indication that the headline debt figures are being reduced or if any reduction is imminent.