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Hands Off The Shay

Hypothetically...

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Could it be possible for DB to withdraw funds from the football club's bank account to support his possibly ailing car dealerships and would he do it?

I can think of plenty who have gone before at the old club who wouldn't have given it a second thought!

It's always a concern when one person holds the purse strings with no scrutiny or accountability.

''I generally avoid temptation unless I can't resist it'' Mae West.

Just a thought!

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Not a chance IMO.

DB isn`t that sort of bloke, and the sort of money available at the club wouldn`t pay for the coffee machines in the showrooms.

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Yes, technically he can do what he likes. We've gone over its drawbacks, but over the last ten years it's been made clear that DB would like to keep the club in a manner that befits his reputation. He's been controlling at times, but he really does care and he would let us know if the scenario was looking dire.

 

Edited by olitheshayman

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9 minutes ago, Angus said:

Not a chance IMO.

DB isn`t that sort of bloke, and the sort of money available at the club wouldn`t pay for the coffee machines in the showrooms.

Agreed. The club isnt run to make much, if any, profit. So whatever is in the bank might just about cover the cost of washing the amount of windows a car showroom has.

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The last balance sheet at 30/6/18 showed cash at bank of £224K

I wonder what the balance was at 30/6/19 and what is is now. The deadline date for the June 2019 balance sheet to be submitted to Companies House is currently 30/6/20 so maybe we will soon know.

Having started this thread tongue in cheek I am actually concerned now as to what our current cash reserves are!

Have the controlled losses exhausted our reserves?

Maybe why DB is looking for outside investment or a way out whilst we are still solvent.

 

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I cannot see any outside investment forthcoming in the present climate other than the amount the supporters have raised on the giving page.

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1 hour ago, Hands Off The Shay said:

Could it be possible for DB to withdraw funds from the football club's bank account to support his possibly ailing car dealerships and would he do it?

I can think of plenty who have gone before at the old club who wouldn't have given it a second thought!

It's always a concern when one person holds the purse strings with no scrutiny or accountability.

''I generally avoid temptation unless I can't resist it'' Mae West.

Just a thought!

Must be on the same drugs as Shaytrev 

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As the club is a private limited company then any withdrawals of cash would be considered to be Dividends (taxable) or Directors Loans where the amount exceeds the Retained Profits in the business, unless he is an employee, in which case he would be taking a very high salary (taxable). Whilst not an accountant I do from time to time have to spend too many hours going through profit and loss figures as well as balance sheets for my own business, and while you can take money out of the business there is an audit trail of where it has gone via bank account statements etc. HMRC will want to know where the money has gone whatever happens.

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1 hour ago, ITMAN said:

As the club is a private limited company then any withdrawals of cash would be considered to be Dividends (taxable) or Directors Loans where the amount exceeds the Retained Profits in the business, unless he is an employee, in which case he would be taking a very high salary (taxable). Whilst not an accountant I do from time to time have to spend too many hours going through profit and loss figures as well as balance sheets for my own business, and while you can take money out of the business there is an audit trail of where it has gone via bank account statements etc. HMRC will want to know where the money has gone whatever happens.

Actually, having looked at the accounts at Companies House I am more bothered as to whether we have any money!

By the way I think one limited company could loan money to another or the car dealership could charge FCHT a management fee for DB's time spent on the affairs of the football club!

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3 hours ago, Hands Off The Shay said:

The last balance sheet at 30/6/18 showed cash at bank of £224K

I wonder what the balance was at 30/6/19 and what is is now. The deadline date for the June 2019 balance sheet to be submitted to Companies House is currently 30/6/20 so maybe we will soon know.

Having started this thread tongue in cheek I am actually concerned now as to what our current cash reserves are!

Have the controlled losses exhausted our reserves?

Maybe why DB is looking for outside investment or a way out whilst we are still solvent.

 

This money will have been spent taking us full-time I would think. I would think the ins and outs of players over that period would roughly balance themselves out.

i would say that although I have questioned Mr Bs ambition football wise he has run a pretty good tight ship that will probably see The Shaymen survive this season financially better than most clubs at this level of the pyramid.

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Does anyone know how the franchised car dealerships work?

For instance do they pay on delivery of the car stock or does it remain the property of the car manufacturers until sold under franchise. That can make a big difference to the business model. 

Its a tough time for everyone and DB will have a lot in his plate. 

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If it helps when Dews Garage collapsed the accountant instead of paying money to finance companies for cars paid it to himself so you would assume car dealerships will have finance agreements in place for their stock although many cars sold probably come in from the manufacturer when ordered and straight out to the customer. I might be wrong but I suspect garages make most of their money through arranging lease agreement for cars rather than the actual sale of the car.

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1 hour ago, Riders of Rohan said:

Does anyone know how the franchised car dealerships work?

For instance do they pay on delivery of the car stock or does it remain the property of the car manufacturers until sold under franchise. That can make a big difference to the business model. 

Its a tough time for everyone and DB will have a lot in his plate. 

The local Toyota dealer here told me that cost price was 21% below list price, but that Toyota mandated discounts of up to 20% for fleet customers, diplomats and certain professions. Not only that but dealers were required to pay list price up front with the difference paid back at the year end, with bonuses for hitting targets, etc. So, technically, the margin could be as little as 1% if targets weren't met, and cash flow could be an issue - perversely, particularly if sales were high. He did say that sales were a bonus though because the servicing side of the business is where they get their main income. This all came out when we ended up negotiating a 22% discount - he was using cash figures rather than percentiles when doing the calculating. He ended up showing us legit-looking documents showing cost price, permitted discounts, etc. so that we'd agree to 20%. It could all have been bollox to make us pay a bit more, and even if it was true, it's probably not the same with all brands/countries.

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2 hours ago, Hoddie said:

The local Toyota dealer here told me that cost price was 21% below list price, but that Toyota mandated discounts of up to 20% for fleet customers, diplomats and certain professions. Not only that but dealers were required to pay list price up front with the difference paid back at the year end, with bonuses for hitting targets, etc. So, technically, the margin could be as little as 1% if targets weren't met, and cash flow could be an issue - perversely, particularly if sales were high. He did say that sales were a bonus though because the servicing side of the business is where they get their main income. This all came out when we ended up negotiating a 22% discount - he was using cash figures rather than percentiles when doing the calculating. He ended up showing us legit-looking documents showing cost price, permitted discounts, etc. so that we'd agree to 20%. It could all have been bollox to make us pay a bit more, and even if it was true, it's probably not the same with all brands/countries.

I sacked RGB Bradford from servicing due to their outrageous charges 

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So anyone in the process of buying a car could lose out if the garage crashes and the car has been bought by the garage from the manufacturer using a finance house. 

 

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