6 + 2 Point Deductions

[MikeH72]

How come Spurs are ok given their massive loss?

Because Levy is a little shrewd egg headed nerd.

 

[Ring master]

So are point deductions for financial issues going to become a regular thing now?

Probably with us . the hearing report when we find out on the 2nd charge verdict should tell us if/how much we are over for next year, so we know what we have to do before June, to try and avoid another one next season

 

[daza_1973]

So are point deductions for financial issues going to become a regular thing now?

No, once they've finally buried us and made their big example they'll probably rethink the rules and replace it with slapped wrists all round.

 

[kenada_blue]

Spurs pay £22m of interest on their stadium, we are paying 2 or 3 times the rate of interest for a stadium that will have less than half the revenue . Yikes

I think we're paying about the same as they were in the same position when they started to build/finish.

It was around £40mill a year in 2020.

 

[PITA]

I'm being thick, but what about our stadium? What is depreciation charge?

Depreciation is not allowed unless you are using the asset in business. Since our stadium is not built and we are, therefore, not using it there is no depreciation allowable.

 

[pejic]

So, if we survive all this, once it is built we can use depreciation value to ensure we are within limits every season?

 

[MikeH72]

Spurs pay £22m of interest on their stadium, we are paying 2 or 3 times the rate of interest for a stadium that will have less than half the revenue . Yikes

Genuinely what maths are you using to work that one out?

 

[pfim]

I'm being thick, but what about our stadium? What is depreciation charge?

Zero. You can't depreciate something that is not finished. None of the cash put into the stadium is part of the PSR calculation.

 

[pfim]

So, if we survive all this, once it is built we can use depreciation value to ensure we are within limits every season?

No. If Everton pays 500 million (debt or equity) to build the stadium, that cash is not part of PSR.

If you depreciate that 500 million asset over 40 years, that is also not part of PSR.

None of the stadium expenses are part of PSR.

No one should be looking at Net Income and trying to equate that to PSR for any club.

 

[kev]

No. If Everton pays 500 million (debt or equity) to build the stadium, that cash is not part of PSR.

If you depreciate that 500 million asset over 40 years, that is also not part of PSR.

None of the stadium expenses are part of PSR.

No one should be looking at Net Income and trying to equate that to PSR for any club.

So what is this about?-

"Tottenham's losses over the last three years are beyond that threshold at £220.7m, but the annual depreciation charge of £72m, which refers to their stadium and other facilities, means they are not at risk of breaching PSR regulations."

 

[matty1878]

i know this is sending us down

 

[Melchizedek]

Because Levy is a little shrewd egg headed nerd.

But did he (head)lock In the price of steel like our firecracker CEO did?

Thanks DBB!

 

[SerenityNigh]

How can they claim that amount of depreciation on that stadium already !?//

I'm sure an actual accountant will jump in but depreciation is like player amortization; it's value spread out over life of the asset (term of contract for player). All assets are immediately depreciated and sometimes this happens early depending on tax laws. So £1B over 40 years (just throwing a number out) is £25 million a year before you add in other factors.

 

[nsno-chris]

i know this is sending us down

not winning in 3 months and recording 6 points from 36 is what is sending us down Matty.

PSR is just a punch in the balls

 

[Fralahna]

This gathering narrative really needs to be nipped in the bud as there is a not a single coherent explanation or rationale of why any points should be deducted at all yet too many people are just taking it as read and even being happy with 1 or 2 points. It should have been made perfectly clear from the start of this latest hearing that any further points deduction would be met with legal action from Everton just like Forest did when 6 was mentioned for them.

As @BirkenheadBlue points out above we have already been dealt with and should not be punished again.

To clarify, I aren't saying I'd accept this or that. I'm adding to the Narrative that Masters has a micro Rick and and him and his PL cronies utterly fail in being impartial and consistent... though I thought my original post was a bit more jovial