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Best 5 club teams in history of Football:
Liverpool 1977-1978 - 100.00%
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Old 11-17-2007, 11:44 PM   shareholders dividend Post #31
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Quote:
Originally posted by DamianY2J:
I would suspect that the game would refer to any payout to shareholders or the owner as a dividend. It would be too complex to refer to it as anything else - it's not the right intention to confuse people with finances.
That makes sense - but it any repayment of Capital should have an effect on the Club Value whereas dividends don't.
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Old 11-17-2007, 11:51 PM   shareholders dividend Post #32
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I guess we could put it down to the game not being created to be this financially aware or to purposely keep things simple.

I guess an answer to this threads original question would be to just accept that from time to time, your club will pay out money in dividends, and the timing of this and the amount is at the discretion of your club, much like setting your transfer budget is. It's not something for the human manager to interfere with or to question, and is something we have to "manage" around.


Will this be the first time in history that a thread has been started and a proper answer or solution given without descending into a fight?

Had to happen sooner or later, I guess. :-)
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Old 11-18-2007, 12:43 AM   shareholders dividend Post #33
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just to point out too, sometimes companies do pay out dividend to shareholders despite making a year end loss, as long as they have cash in hand for the pay out. Vodafone for example continue to pay out dividend to shareholders despite making losses in the previous financial years. One of the reason I believe is to keep the investor happy.
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Old 11-18-2007, 01:06 AM   shareholders dividend Post #34
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Quote:
Originally posted by andyinuk:
One of the reason I believe is to keep the investor happy.
Keep the share price up, more like :/
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Old 11-18-2007, 01:46 AM   shareholders dividend Post #35
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that too. otherwise the share price of vodafone would have been hitting the rock bottom, judging from their losses in the last three years
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Old 11-18-2007, 02:26 AM   shareholders dividend Post #36
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Quote:
Originally posted by Nostromo:
<BLOCKQUOTE>Originally posted by Law_Man:
For what it's worth the English company law position is as follows:

Both Private Companies and Listed Companies can pay dividends in any or all years where there are sufficient distributable profits.

The mechanism for doing so is that the board get together and declare an appropriate dividend which then must be approved by the shareholders by an ordinary resolution at a general meeting.

The dividend is only then paid after the final accounts for the year to which it relates are completed and so dividends paid will be a year behind.

Dividends can only be paid if there are 'profits available' which means only if profits that have been kept within the company (i.e not distributed through dividends') exceed the total amount of debts fallen due to date.

Private Companies are less likely to declare a dividend than public companies because often there are only one or two shareholders who will also be directors too and so they can instead pay themselves an agreed salary as a wage to live on and plough most of the profits back into the company to try to grow it. Most owners of private companies therefore are aiming to increase the size of the company to a point at which it's value is sufficient for them to sell it for good money on exit.

Public Companies are much more likely to pay regular dividends and in fact most investors (shareholders) in public companies would expect a dividend to be paid.

Re Chelsea well if the Company (whatever it's called e.g. Chelsea Ltd etc) made a loss the last few years then it can't pay a dividend as there would be no profits. If in the year in question that Nostromo referred to in the opening post Chelsea made a profit, then Chelsea can decide to pay a dividend to it's shareholder(s) i.e. Abramovich.

In terms of business strategy, I'm sure Abramovich intends to get his £400m back at some stage, and this is reflected in the appointment of Kenyon with a 5 year strategy to break even. Soon after the team breaks even, and when all the investment in youth and facilities etc at Chelsea comes on stream, then the Company will be in a position to start to pay a dividend to Abramovich. Moreover, if anyone ever wants to buy Chelsea then Abramovich might get the remainder of his money back there too. That's how businesses work. Investors invest to receive dividends and in the hope that their holding will increase in value.
made a loss. started with 110 m, finished the season with 52m...then paid out divs on that. </BLOCKQUOTE>

If you ended up with 52 million sat in th bank it's no wonder dividends were paid out, companies don't tend to keep money in the bank long, just because the balance didn't go up doesn't mean dividends won't be paid out if the money's there. If you had -52 million in the bank you'd have a point.
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Old 11-18-2007, 02:27 AM   shareholders dividend Post #37
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Quote:
Originally posted by Glyn:
<BLOCKQUOTE>Originally posted by Nostromo:
<BLOCKQUOTE>Originally posted by Glyn:
<BLOCKQUOTE>Originally posted by DS:
Any company can pay dividends. If 1 person owns the company they can take out as much money as they want from the company because its there company.
Exactly. Abramovich owns Chelsea because he owns the shares in Chelsea. Therefore, he's a shareholder that dividends are paid to.

And for Nostromo - as for only plcs paying dividends...how exactly are the investors in non-plcs supposed to get a return on their investment if not through dividend payments? </BLOCKQUOTE>

isn't the role of the moderator is to moderate? i don't recall 'attitude' being part of the jd. but thanks for the feedback anyway.

but since you made such an intelligent point, why didnt watford pay shareholders dividend...or man city?

please dream up something on that and share it with us

thanks in advance </BLOCKQUOTE>

Attitude? Where did you dream that up from? Do you actually read a straightforward question (which you haven't bothered to answer, btw) in your own head with the type of attitude you would ask it (ie the same sort of attitude that comes out with 'but since you made such an intelligent point')?

As for 'why didnt watford pay shareholders dividend...or man city?', for a start, I don't know whether you're talking about in-game or IRL, but in either case, as has been pointed out above, but even if a company has made the profits to enable them to make a profit, it doesn't mean that they have to make dividend payments - profit can always be ploughed back into a company for invest purposes etc. And that isn't 'dreamt up', but I have shared it with you.

As for 'isn't the role of the moderator is to moderate?'. Yes it is. But it doesn't mean that I can't also post in the same way as any other forum user.

In return, perhaps I can ask a similar question of you - isn't it the role of forum users to adhere to the House Rules and also the Terms And Conditions you agreed to when joining the forums that state you shouldn't be abusive to other users? Please dream up something on that and share it with us.

Thanks in advance. </BLOCKQUOTE>

First of all, i was talking about the game, not real life.

As you are aware, and im sure you are as you seem to read some of the postings...the game is far from being realistic.

Obviously, you are doing the dreaming....where did I abuse you? Pointing out the obvious is not abuse, it maybe annoying for you but its not abuse.

Maybe, you should try to be less sensitive. No, this is not abuse either. Just advice.

Actually you are wrong. The moderator's purpose is to moderate in an impartial manner.

I don't see you doing that. In fact, you feel compelled to inflame the situation by 'clever' at the end of your post.

Thanks for trying to get 'heavy' on me, its quite funny. Especially, your intention behind it.

You get critised, (once again pointing out the difference between abuse and citicism), and insted of dealing with it, you respond in a manner hoping to gain sympathy from the rest of the posters.

Fascinating stuff. Wonder what Freud would say about that. The need for justification must be strong.
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Old 11-18-2007, 02:30 AM   shareholders dividend Post #38
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Also, just because the bank balance decreases it does NOT mean a loss has been made, it could simply mean more money has been invested that year than the previous, You could have made 50 million profit which was then spent on investments for the future, such as new training facilities, a stadium or even players, in a corporate sense, players are viewed as assets NOT costs, so buying a player doesn't count as a loss for the business, it counts as an asset.
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Old 11-18-2007, 02:31 AM   shareholders dividend Post #39
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Quote:
Originally posted by BJG123:
<BLOCKQUOTE>Originally posted by Nostromo:
<BLOCKQUOTE>Originally posted by Law_Man:
For what it's worth the English company law position is as follows:

Both Private Companies and Listed Companies can pay dividends in any or all years where there are sufficient distributable profits.

The mechanism for doing so is that the board get together and declare an appropriate dividend which then must be approved by the shareholders by an ordinary resolution at a general meeting.

The dividend is only then paid after the final accounts for the year to which it relates are completed and so dividends paid will be a year behind.

Dividends can only be paid if there are 'profits available' which means only if profits that have been kept within the company (i.e not distributed through dividends') exceed the total amount of debts fallen due to date.

Private Companies are less likely to declare a dividend than public companies because often there are only one or two shareholders who will also be directors too and so they can instead pay themselves an agreed salary as a wage to live on and plough most of the profits back into the company to try to grow it. Most owners of private companies therefore are aiming to increase the size of the company to a point at which it's value is sufficient for them to sell it for good money on exit.

Public Companies are much more likely to pay regular dividends and in fact most investors (shareholders) in public companies would expect a dividend to be paid.

Re Chelsea well if the Company (whatever it's called e.g. Chelsea Ltd etc) made a loss the last few years then it can't pay a dividend as there would be no profits. If in the year in question that Nostromo referred to in the opening post Chelsea made a profit, then Chelsea can decide to pay a dividend to it's shareholder(s) i.e. Abramovich.

In terms of business strategy, I'm sure Abramovich intends to get his £400m back at some stage, and this is reflected in the appointment of Kenyon with a 5 year strategy to break even. Soon after the team breaks even, and when all the investment in youth and facilities etc at Chelsea comes on stream, then the Company will be in a position to start to pay a dividend to Abramovich. Moreover, if anyone ever wants to buy Chelsea then Abramovich might get the remainder of his money back there too. That's how businesses work. Investors invest to receive dividends and in the hope that their holding will increase in value.
made a loss. started with 110 m, finished the season with 52m...then paid out divs on that. </BLOCKQUOTE>

If you ended up with 52 million sat in th bank it's no wonder dividends were paid out, companies don't tend to keep money in the bank long, just because the balance didn't go up doesn't mean dividends won't be paid out if the money's there. If you had -52 million in the bank you'd have a point. </BLOCKQUOTE>

at the end of the season, i made a huge loss and left with 52m in the bank. that was supposed to be going towards next years, stadium extension, transfer fees..etc

no company would pay out, escecially a footbal club, unless they are stupid and are planning on severely impacting next year's operation. hence lack of realism in the game.
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Old 11-18-2007, 02:33 AM   shareholders dividend Post #40
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Quote:
Originally posted by BJG123:
Also, just because the bank balance decreases it does NOT mean a loss has been made, it could simply mean more money has been invested that year than the previous, You could have made 50 million profit which was then spent on investments for the future, such as new training facilities, a stadium or even players, in a corporate sense, players are viewed as assets NOT costs, so buying a player doesn't count as a loss for the business, it counts as an asset.

there was a big red figure showing the loss i made for the year, and then they paid out dividend.

re your comments...think about leeds. look at all the 'assets' the club had and where they are now.
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