GwladysPhil
Player Valuation: £35m
They're running away with the league yet they're still completely rattled by our potential financial power.
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In England indeed Europe all football contracts run 1/7 - 30/6.
How you pay for a player is one things but in the accounts the players transfer fee is written off( amortised ) over the period of the contract. Pay £25 million and issue a five year contract the charge in accounting terms is written off at the rate of £5 million pa.
Gomes signing on 25/6/2019 would have little or no impact in the 2018/19 accounts.
gwladysnight
Player Valuation: £10m
Amortisation is how your profit or loss on players is generated which is absolutely central to how FFP works.
gwladysnight
Player Valuation: £10m
Transfers are money in money out.
You buy a player for £50m on a five year deal and his value is amortised over the length of the deal. So 10m a year. So after 3 years his value is £20m on the books. If you sell him for £40m you make a player trading profit of £20m, if he leaves on a free then you make a £20m loss.
Your player trading is part of your profit and loss which is the core of FFP.
Surely an outgoing transfer is money in though?
In cash terms yes but in accounting terms , which is what FFP looks at, its only a profit if he is sold for more than his amortised value.
Daft as it may seem buy a player for £20 million on a 5 year deal and say after 4 years you sell him for £10 million you actually show a profit in your accounts and for FFP purposes of £6 million
It is, but profit on the player doesnt matter, only incoming and outgoing money.
People are getting confused with STCC rules which have been replaced by profit and loss rules.
But FFP is different also.
gwladysnight
Player Valuation: £10m
Here are our accounts.
The highlighted bits show how player trading profits have effected the accounts.
The Premier League introduced Financial Fair Play and Short term Cost Control at the same time. FFP is about limiting losses to £105m over 3 years STCC was about wage bill increases being covered by commercial deals and not TV money.
FFP is just your losses minus any Stadium or Academy costs. So player trading certainly effects it.
It affects it, cos its incoming money.
Anyway, anybody who says they understand the FFP rules is lying, so lets just leave this here.
Catfish Blues
Player Valuation: £15m
I agree with on the amortisation, and, normally I'd agree with you on the contract start date, but the transfer window last Summer was unusual, in that it started on the 16th May
Also, from the accounts
which, unless the statement in the accounts is wrong, tells me he was recorded as being on the books in the accounts just published
If we'd have had more money, and spent it wisely, quite a few draws would likely be wins, we'd be higher up the table and looking forward to the possibility of European away days next season.
I get some people aren't arsed about the money, and it's certainly not the main reason we're fans, but, as in real life, a better financial position makes it easier to afford the better things in life. Obviously that might not make us happier though, but I'd rather the club had more cash than less. We can do very little about it, but neither can we do very much about what happens on the pitch.
Tipp blue
If I agreed with you, we’d both be wrong.
Would outgoing transfers not be in the money in category? Much the same as incoming transfers are in the money out category.
Catfish Blues
Player Valuation: £15m
I think we're at cross purposes mate, I agree his value won't have any real effect on amortisation in the accounts just published, but the first post you quoted of mine was in response to @AndyC and we were discussing whether or not his transfer fee was included in the 19/20 accounts.
I believe the bit I lifted shows that his fee was included in the 19/20 accounts, so his fee contributed to our loss in those accounts. So his transfer fee won't appear in the 20/21 accounts ( though there'll be a years worth of amortisation in them ).
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