'Coates loan write-off a sign of commitment' - Maguire
'No John Coates, no party'
- Published
Stoke City reported a £60.8m profit in their latest accounts but the numbers should not look that good, according to football finance expert Kieran Maguire.
A "structural change" saw owner John Coates waive a £90.5m loan, dramatically changing the outlook of Stoke's end-of-year figures.
"A £60m profit was made - that really is driven by the fact the owner wrote off a £90m loss, if that wasn't the case it would look a lot worse," Maguire told BBC Radio Stoke.
"But there are some positives, there is more money coming through the door. The money coming in is good, the wage bill is a bit better - [it's] under control."
Maguire believes that Coates' loan write-off also has a positive outlook for the club's future beyond their accounts for the year, emphasising what it says about the owner's long-term plans.
"No John Coates, no party. He's a very benevolent owner, there is no doubt about that," Maguire said.
"If the owner's circumstances change or the owner's attitude changes, it can be problematic. The Coates family put in £46m of cash last year in the form of fresh shares which was very beneficial for the club.
"It's certainly a sign of ongoing commitment by John Coates - and also the fact the running a football club is an expensive hobby."
However, Maguire added that turning a profit because of their owner's generosity does not mean Stoke are set for a fruitful summer.
"I think the club will have to be cautious as far as this summer is concerned," he said.
"The reason for that is that the debt write-off is not included as part of your PSR [Profit and Sustainability Rules] calculations so you would have to look at it as -£30m rather than a positive of £60m.
"So the rumours of Kylian Mbappe seen wandering around an estate agent in Hanley are probably overstating the good news."
