Rage Online

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

But to whom?

&quotPeña Oxford United&quot wrote:

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

But to whom?

Perhaps the club had a bank overdraft at end of last season, or the WPL agreed / budgeted loan for the season was say £900K but ended up at £1m. Not saying this DID happen, but it is a possibility. The same way that when students receive their £3k grant they pay off their current overdraft, and so instead of starting the year with £3k, they have only £1500.

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

But again, that’s just guessing isn’t it?

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

That would be a first - Oxford United paying off debts to a current owner - they usually keep on climbing until the current owner throws up hishands and does a dealwith a new owner. I doubt that the club would be allowed any bank ovedraft so the only debts other than standard trading debts would be to WPL.

Season ticket income represents 50% of ticket income but only 25% of total income according to WPL's projections they used at their forum 18 months ago. Of course as expenditure exceeds income the season ticket money represents an even smaller percentage of the expenses - say 20% (guestimate of £450k against expenditure of £2.25M) so after almost 3 months of a 9 month season you'd expect it to have long gone by now.

&quotSnake&quot wrote:

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

But again, that’s just guessing isn’t it?

It is of course speculation, which is why I said &quotI suspect&quot. If I don't know something for sure then I generally hedge my words accordingly, so that people can't come back and pick me up on it. One of the themes on this thread is how the season ticket money can have run out already. I think that paying off some of last season's debts is a very plausible explanation.

At 30 June 07 (more than a year out of date but latest available figures to me), the club disclosed as current liabilites :-
bank loans and overdrafts £137K trade creditors £113K social security and other taxes £57K, other creditors £145k and accruals and deferred income £339K. After deducting current assets, the club at 1 July 2008 had net short term liabilities of £278K most of which was presumably in relation to the previous season. I would have thought that any season ticket money taken would have been used to pay off those debts.

Mally - that also shows that banks have lent money to the club.

&quotslappy&quot wrote:

&quotSnake&quot wrote:

&quotslappy&quot wrote:I would suspect that this season's season ticket money got partly used paying off debts from last season.

But again, that’s just guessing isn’t it?

Mally - that also shows that banks have lent money to the club.

It does, but that was in relation to events back in 2006 when Kassam owned the club for 80% of the financial year and was probably guaranteed by other Firoka companies'assets. I'm not so sure a bank would lend the club money now in the current financial crisis. I think Oxford United is the perfect definition of sub-prime