Understanding NCFC's fianaces made easy - part 5 06/7

My forecast and its only a forecast (as I dont know whether the club has spent money on items that I'm unaware of) is that in simplistic terms the club has ?3.3m. So in a sense they have just reinstated the cash balance they had at the 31st May 2005 which I thought they would use to clear debts (see part 2 earlier).

We also shouldn't forget that having four players leave: Jarrett, Brennan, Charlton and Ward
it has freed up over ?1m re saved wages and NI contributions over the course of the 06/07 season. In addition I am predicting an additional ?5.8m pre tax to be available during the
course of the 06/07 season subject to any expenditure /drop in revenue I don't know about.

As for unexpected expenditure, I would be surprised if there is much of that as we have renewed the pitch, built the Jarrold and Corner stands (surely there's not much more fitting out to do?) , refreshed the Colney facility etc.

We shouldn't foget that Doncaster referred to tight CASHFLOW and the ?1m+ and ?5.8m I predict become available during the length of the season.

So how much is available for transfer fees now? Given a cautious board I suspect they want to hold most of that ?3.3m as a cash balance so they have probably told the manager he's got ?1m now.

Don't foget half of transfer fees are paid on the transfer date and the other half over 12 months.
So in effect ?1m now can be used to buy players with transfer fees of ?2m (with the other ?1m being paid from the ?5.8m).

Posted By: Financebod, Jul 13, 14:24:39