sts financial problem

[Sutty]

Speaking from a business perspective. The purchase of Orrell would be seen as an acquisition, so even though we have made a financial loss in purchasing it, it will be deemed as an investment as it is going to be properly used and invested in.

It's not a loss we, or anyone else for that matter, should be concerned about. The moneys gone now so we probably wont lose any more on it.

[highland convert]

Sutty posted:
Speaking from a business perspective. The purchase of Orrell would be seen as an acquisition, so even though we have made a financial loss in purchasing it, it will be deemed as an investment as it is going to be properly used and invested in.

It's not a loss we, or anyone else for that matter, should be concerned about. The moneys gone now so we probably wont lose any more on it.

You are correct. Orrel will be on the assett sheet as an assett. However it could be written down quickly as depreciation of assett. Many commercial properties have a depriciation level over a period of years. In many cases this is contrary to fact. Say the club gave orrel ten years at 10% writedown per year. The property after ten years is worthless in book value. In fact due to inflation it is worth more than purchase price. Capital gains taxman will love you. In my case the building was depriciated from £70k to f40k but sold for much more. Hence tax bill is five figures. If DW was using the JJB and WW as a tax writeoff the true finances may never be known.
What I am saying is an accountant could juggle the figures to the tax advantage of the owners. Take a Wigan strip. Cost to JJB £10.00. Cost to you £40. Profit £30. Now a percentage of that goes to JJB a percentage to warriors account. Both accounts are DW. Now he will pay 50% tax on one none on the other.By juggling the pecentages he can minimise tax. What DW and possibly IL do not need is a profitable WW. If it is owned as a business by a company making superbucks it can be a tax loss without actually costing IL that much. Years ago I was employed by a company that run at a loss. It however was owned by a shipping company that was making good profit. The quarry supplied stone to the islands via their ships. The stone production was an acceptable loss. Same with WW the loss can be obsorbed by IL enterprises thus reducing tax liability. The accountants charge £100* per hour just to keep rich folks money from the taxman. And IL will have an office full of them. HC