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Red Bull accounting


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#1
JBigjake54

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RB Leipzig just got 100m written off by papa Red Bull


Are you discussing an accounting move? Link?
Or transfer fees?
https://www.transfer...rs/verein/23826
RBL spent about 82M Euros, recouped about 55M.
Werner sale will push the latter to E108M.
E26M is about $29M.

We are good enough to beat the best teams, and bad enough to lose to the worst teams. 


#2
Mibabalou

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Are you discussing an accounting move? Link?
Or transfer fees?
https://www.transfer...rs/verein/23826
RBL spent about 82M Euros, recouped about 55M.
Werner sale will push the latter to E108M.
E26M is about $29M.



https://rblive.de/ve...-schulden-13099


Investor Red Bull has written off 100 million euros in debt to Bundesliga club RB Leipzig. This is stated in the new annual financial statement for the 2018/19 season, which the first division club published in the Bundesanzeiger on Wednesday. The balance sheet states that "a conversion of shareholder loans in the amount of 100 million euros to capital reserves" has taken place. "In this case, debts to Red Bull were converted very elegantly and legally compliant from debt to equity", assesses balance sheet expert Prof. Ludwig Hierl in an interview with RBlive.de/Mitteldeutsche Zeitung. "Red Bull has waived the outstanding debts and, to put it simply, added the sum to the purchase price for the club." When the GmbH was founded, Red Bull, which holds 99 percent of it, had only paid in 2.5 million euros in share capital. As a result of this ruse, RBL now has only 86 million debts with Red Bull instead of 186 million euros. Hierl does not classify the procedure as a distortion of competition or a violation of financial fair play. Other clubs, such as Hamburger SV, have in the past been relieved of debts by financial backers in a similar way. Red Bull could also have deposited the 100 million as equity capital when the GmbH was founded, which probably did not happen to prevent the media outcry.

86 million instead of 186 million euros in debt to Red Bull However, RB managing director Oliver Mintzlaff had repeatedly pointed out in the past that the loans had to be paid back in full with interest. "Our loans do not come from Sparkasse Leipzig, but at normal market conditions from Red Bull", Mintzlaff had said only in January. "The money was not given to us, these are loans that have to be repaid. If Schalke borrows money from Clemens Toennies, they must pay it back." Turnover in the fiscal year 2018/19 rose by over 50 million to 270 million euros. But expenditure also rose to 265 million euros. Salaries alone rose by about 20 percent compared to the previous year to a total of 120 million euros. The net profit for the year is 1.6 million euro. (RBlive/ukr)


Red Bull Co. gave Leipzig loans. The managing director of Red Bull Co. said those were loans and needed to be paid back by with interest. But someone above him overruled him and agreed that the debt that Leipzig owed would be converted to equity in Leipzig. Red Bull Co. already owns 99% of Leipzig, so it was added to the cost of purchasing the club.

Technically this doesn't break any rules and doesn't violate FFP but it's shady as hell. This is basically a sugar daddy situation.

Edit: he wasn't overruled, he just lied.

#3
RedBullScouse

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https://rblive.de/ve...-schulden-13099


Investor Red Bull has written off 100 million euros in debt to Bundesliga club RB Leipzig. This is stated in the new annual financial statement for the 2018/19 season, which the first division club published in the Bundesanzeiger on Wednesday. The balance sheet states that "a conversion of shareholder loans in the amount of 100 million euros to capital reserves" has taken place. "In this case, debts to Red Bull were converted very elegantly and legally compliant from debt to equity", assesses balance sheet expert Prof. Ludwig Hierl in an interview with RBlive.de/Mitteldeutsche Zeitung. "Red Bull has waived the outstanding debts and, to put it simply, added the sum to the purchase price for the club." When the GmbH was founded, Red Bull, which holds 99 percent of it, had only paid in 2.5 million euros in share capital. As a result of this ruse, RBL now has only 86 million debts with Red Bull instead of 186 million euros. Hierl does not classify the procedure as a distortion of competition or a violation of financial fair play. Other clubs, such as Hamburger SV, have in the past been relieved of debts by financial backers in a similar way. Red Bull could also have deposited the 100 million as equity capital when the GmbH was founded, which probably did not happen to prevent the media outcry.

86 million instead of 186 million euros in debt to Red Bull However, RB managing director Oliver Mintzlaff had repeatedly pointed out in the past that the loans had to be paid back in full with interest. "Our loans do not come from Sparkasse Leipzig, but at normal market conditions from Red Bull", Mintzlaff had said only in January. "The money was not given to us, these are loans that have to be repaid. If Schalke borrows money from Clemens Toennies, they must pay it back." Turnover in the fiscal year 2018/19 rose by over 50 million to 270 million euros. But expenditure also rose to 265 million euros. Salaries alone rose by about 20 percent compared to the previous year to a total of 120 million euros. The net profit for the year is 1.6 million euro. (RBlive/ukr)


Red Bull Co. gave Leipzig loans. The managing director of Red Bull Co. said those were loans and needed to be paid back by with interest. But someone above him overruled him and agreed that the debt that Leipzig owed would be converted to equity in Leipzig. Red Bull Co. already owns 99% of Leipzig, so it was added to the cost of purchasing the club.

Technically this doesn't break any rules and doesn't violate FFP but it's shady as hell. This is basically a sugar daddy situation.

Edit: he wasn't overruled, he just lied.

They paid back the loans, using equity instead of cash.   


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#4
JBigjake54

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Red Bull has written off 100 million euros in debt to Bundesliga club RB Leipzig. ...
When ... founded, Red Bull ... only paid in 2.5 million euros in share capital. ...
Turnover in the fiscal year 2018/19 ... rose to 270 million euros. But expenditure also rose to 265 million euros. ... net profit for the year is 1.6 million euro.


How much did RB pay for the MetroStars + RBA?
Is RB making a profit on RBNY?

We are good enough to beat the best teams, and bad enough to lose to the worst teams. 


#5
defendyourself

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How much did RB pay for the MetroStars + RBA?
Is RB making a profit on RBNY?

Forbes estimatied we have a $6mm operating loss but factoring capital appreciation, expansion fee distribution, and SUM their ROI must be thru the roof.

in someways given the our net transfer spend and the league paying non-DP salaries i would expect us to be profitable.   



#6
JBigjake54

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... $6mm operating loss but factoring capital appreciation, expansion fee distribution, and SUM their ROI must be thru the roof. ... i would expect us to be profitable. 


Accounting can be an amazing sleight-of-hand.
Does RB ever decide to cash out? Its initial investment, which must be in excess of $200M, has to have been depreciated fully by now. IIRC, companies can write down up to 20% of their investment annually. RBs current basis must be zero. All monies gained will be balanced by paper losses elsewhere.

We are good enough to beat the best teams, and bad enough to lose to the worst teams. 


#7
RedBullScouse

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Accounting can be an amazing sleight-of-hand.
Does RB ever decide to cash out? Its initial investment, which must be in excess of $200M, has to have been depreciated fully by now. IIRC, companies can write down up to 20% of their investment annually. RBs current basis must be zero. All monies gained will be balanced by paper losses elsewhere.

Which assets would could be depreciated?  You can only depreciate capital that has a finite useful life.  As I would see it, the only thing that would be depreciated would have been the stadium - over 20 or so years -  and that's not on the books any more (assuming its an operating lease and not a capital lease).    But your point stands, cash flow for a giant, wealthy company like RB is almost meaningless when your asset is appreciating at the rate these MLS teams have. 


"Everybody has a plan until they get punched in the mouth." - Iron Mike

 

Bitch covered my plaid?
The sorrow inside me grows.
I need my plaid pitch.

"It goes without saying that when things don't go your way they just don't go your way. " - JCO

"He can't kick with his left foot, he can't tackle, he can't head the ball and he doesn't score many goals. Apart from that, he's all right.”
George Best, on David Beckham


#8
JBigjake54

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Which assets would could be depreciated? 


That is difficult to determine. Did RB purchase Metro? Or a franchise in MLS? Did it invest in RBA?
I suppose that MLS franchises are increasing in value, based on entry fees. Does that apply to RBNY?
Does a half-filled stadium affect goodwill, which can once again be amortized over ten years, if impaired?
I believe that RBA attendances are greatly inflated.
Perhaps there is creative bookkeeping as well.
Although, not to this extent:
https://nypost.com/2...d-2-1b-scandal/

We are good enough to beat the best teams, and bad enough to lose to the worst teams. 





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