Gunth’s analysis of OUFC Ltd A/Cs y/e 30/6/99

Random notes in no particular order (as you’d expect).

1) The change in accounting practice regarding players’ registration fees seems to be a good idea as this and associated costs can now be capitalised and then charged to the profit and loss account over a period of years. Therefore the registration fee is now an intangible asset. However it also means that homegrown players have no value in the accounts!

2) Firoka – how did Firoz Kassam work out that company name! – must give us ?2m up to June 2001: ?900k to pay off reduced creditors via the CVA (Company Voluntary Agreement) and the rest to mop up operating losses. Interestingly the CVA means that amounts due to OCC (Oxford City Council and TWATS (Thames Water) and loads of other creditors have been taken on by Firoka, including construction work.

3) The Manor is valued at ?4m but expected to reach more if planning permission is granted and only shows as ?1.8m in the accounts!

4) There are no loans due to Directors, hurrah!

5) The transfer of beneficial interest in the new stadium is subject to the right of the club to play at the new stadium (in English this means that if United loses the Judicial Review then Firoka can pass back to the club all the debts it has taken on) .

6) ?1.9m is still owed to Energy Holdings and held over sale of The Manor.

7) There is ?1m included in other loans that is not detailed. It would be interesting to know what that is and if anyone goes to the shareholders meeting we would be grateful if they could let us know.

So my brief assessment is that Firoz has taken away the majority of the creditors resulting in the big upturn of ?5m from loss to profit. However if we lose the JR (Judicial Review) then it looks as though Firoka can pass back all the shit and really screw us over.

If you have any more specific questions please email us.

Gunth