When will the two important dates in the financial plan of Reds/Perspolis come out of losses?

In its financial plan, Persepolis has predicted the beginning of annual profitability for the financial year 1407 and the compensation of accumulated losses until the end of the financial year 1408.

According to the report of Sport Se, among the big numbers of the Persepolis capital increase justification report, one part is particularly important. The club has predicted when its income will exceed expenses and when it will be able to compensate for the accumulated losses from previous years. Two events that are not supposed to happen at the same time in the calculations of this report.

According to this document, even if the proposed capital increase is implemented, Persepolis will end the fiscal year ending June 31, 1406 with a net loss of about 326 billion tomans. Of course, in the scenario without capital increase, the loss of the same year is estimated at around 1,113 billion Tomans. Therefore, the implementation of the plan in the club's calculations will reduce the loss of the first year by about 786 billion tomans, but it is still not enough to achieve profit.

The change point can be seen in the next fiscal year. Persepolis has predicted a net profit of about 1,219 billion tomans for the fiscal year ending June 31, 1407. A figure that, if realized, means that the club will pass the annual loss. Following this path, the net profit of the financial year 1408 is estimated to be around 2,316 billion tomans.

However, being profitable in one year does not mean erasing past losses. According to the tables of the report, the accumulated loss of Persepolis at the end of the fiscal year 1406 will still be about two thousand and 921 billion tomans. Even after the significant profit predicted for the next year, the club will still have an accumulated loss of 1,763 billion tomans at the end of June 1407.

The deadline for full compensation of this loss in the scenario of the club is the end of June 1408. At that point, the account balance from accumulated losses reaches about 437 billion tomans of accumulated profit. In this way, the presented program has two specific dates. First, annual profitability in the financial year 1407 and then compensation of past losses until the end of the financial year 1408.

This difference is also important regarding the exclusion of Article 141 of the Trade Law. The criterion of this article is the loss of at least half of the capital due to losses. With the proposed capital increase of Persepolis to about eight thousand and 119 billion tomans, the accumulated loss predicted for the end of the fiscal year 1406 will be less than half of the new capital. For this reason, in the calculations of this plan, it is possible to leave the situation covered by Article 141, while the club still has a heavy accumulated loss.

Of course, all these figures are justifiable report forecasts and their realization is dependent on commercial revenues, transfers, football activities and cost control. A large part of the capital increase is proposed from the revaluation of assets, which does not bring new cash to the club. Increases in registered real estate values ​​can change the financial structure, but player contracts and tournament fees still require cash resources.

The pressure of these costs is an issue that Peyman Haddadi warned about recently. The CEO of Persepolis, despite pointing to the growth of the club's income, considered the continued inflation as a factor for the possibility of a resource deficit at the end of the year. Now the financial tables of Persepolis show what path the managers have drawn to overcome the loss. A path whose success, after the approval and implementation of the capital increase, should be seen in the real incomes and expenses of the club.