ECHO Comment: "Fears of Witch-hunt Against Liverpool FC" part 2

[devlinadl]

Hi mate, can you ask the RAWKites why they think player sales aren't included in turnover figures?

And can you ask them how they're accounted for?

It’s standard accounting treatment in the UK. No club includes player sales in their turnover.

 

[dead_soft]

I've just put this in my group chat and I've been told that it must be a manc or a blue trying to make Liverpool look bad. Hmmmmm....

Thank God it’s not you using the incident to point score

 

[Yarrgh]

It’s standard accounting treatment in the UK. No club includes player sales in their turnover.

Don't tell the HMRC that!

Or the Financial Fair Play rules.

In fact, it's such a common UK practice, that most retailers don't include sales of goods in their turnover too. My mind is boggled. Have you ever been an accountant for Patisserie Valerie?

 

[Steve0]

It’s standard accounting treatment in the UK. No club includes player sales in their turnover.

Liverpool aren't turning over 500m without player sales.

 

[rylojr]

Is their wage bill to turnover as precarious as our 77% which is the highest in the top 5 leagues with Roma 2nd with 71%.

It seems their wages are going up in line with their turnover which for all business is a good sign of stable financial progress, so a £50 million increase isn't that negligible when a turnover has gone up to nearly £450-£500 million range from the £360 million range in the last turnover results.

EDIT

I just looked it up on Swiss Ramble and their wages to turnover last season was at 57%, in their next results factoring in CL revenues they are going to be adding a extra 100 million easily expected in the coming turnover results range so they will still be below 60% and that is factoring in a a £50 million wages increase that @Steve0 alluded to.

I cannot see any financial predicament for them loking at the swiis ramble piece on Twitter, they also have a huge kit deal that was in the papers last week expected to be the biggest in the PL with Nike and Adidas in a bidding war that will boost their coffers more.

I think it helps for them for financial stability that they have former wall street hedge funders owning them i have to say.

You still here you absolute Divvy?

Get a life lad... go out, kiss a girl, get drunk, learn to dance....


You whopper.

 

[devlinadl]

Liverpool aren't turning over 500m without player sales.

Liverpool are not turning over £500m. The deloitte report came out this morning and their turnover is £455m.

 

[devlinadl]

Don't tell the HMRC that!

Or the Financial Fair Play rules.

In fact, it's such a common UK practice, that most retailers don't include sales of goods in their turnover too. My mind is boggled. Have you ever been an accountant for Patisserie Valerie?

Players are not considered to good for sale. They are considered capital assets.

 

[Steve0]

Liverpool are not turning over £500m. The deloitte report came out this morning and their turnover is £455m.

So not 500.

I'm at a loss, how and who would player trading not be included?

I think what's confusing the rawkites is that not every sale is necessarily recorded.

I.e if Everton sell every player for 800m and buy another squad for 800m the turnover wouldn't go up by 800m but basically stay the same as player trading netts off at zero.

This doesn't mean sales aren't recorded in sales figures. That's just demented if you stop to think about it for more than 5 sec8nds.

Ill ask again, how do you think players sales is accounted for.

 

[Tommy Chong]

Players are not considered to good for sale. They are considered capital assets.

No, but the profit on a sale of an 'asset' is captured in the income statement. Not in the revenue section, but in the 'other income' section.

 

[devlinadl]

So not 500.

I'm at a loss, how and who would player trading not be included?

I think what's confusing the rawkites is that not every sale is necessarily recorded.

I.e if Everton sell every player for 800m and buy another squad for 800m the turnover wouldn't go up by 800m but basically stay the same as player trading netts off at zero.

This doesn't mean sales aren't recorded in sales figures. That's just demented if you stop to think about it for more than 5 sec8nds.

Ill ask again, how do you think players sales is accounted for.

Player sales are never included in turnover. All UK clubs treat it the same way. There is basically a separate column in the P&L account for player turnover called "player trading", and it not added to turnover. You can see what I mean from the Everton 2017 accounts attached here.

 

[devlinadl]

No, but the profit on a sale of an 'asset' is captured in the income statement. Not in the revenue section, but in the 'other income' section.

Yes, it impacts the P&L. My point is that it does not impact turnover.

 

[Tommy Chong]

Yes, it impacts the P&L. My point is that it does not impact turnover.

Ahh ok... I see what you're saying.

 

[HongKongToffee]

So not 500.

I'm at a loss, how and who would player trading not be included?

I think what's confusing the rawkites is that not every sale is necessarily recorded.

I.e if Everton sell every player for 800m and buy another squad for 800m the turnover wouldn't go up by 800m but basically stay the same as player trading netts off at zero.

This doesn't mean sales aren't recorded in sales figures. That's just demented if you stop to think about it for more than 5 sec8nds.

Ill ask again, how do you think players sales is accounted for.

Turnover is recorded only by Match day, Tv and commercial revenues, Player sales are not included in the tallied results.

Player transfer fees are amortised and paid in installments over the duration of the contract, but player sales in and out and loans/equity go into the profit/loss bracket, not the turnover results.

 

[Steve0]

Player sales are never included in turnover. All UK clubs treat it the same way. There is basically a separate column in the P&L account for player turnover called "player trading", and it not added to turnover. You can see what I mean from the Everton 2017 accounts attached here.

It's sort of right. In a way. Fact is coutinhos sale is basically the source of the profit.

 

[Steve0]

Turnover is recorded only by Match day, Tv and commercial revenues, Player sales are not included in the tallied results.

Player transfer fees are amortised and paid in installments over the duration of the contract, but player sales in and out and loans/equity go into the profit/loss bracket, not the turnover results.

They're not paid in statements, amortization is just a fairer way of costing a player.

A machine that's going to increase profit by 30k a year for 5 years and costs 100k.

If it's recorded immediately the company would make a 70k loss the first year before making 30 the next four. Which would obviously be misleading so the cost in the accounts will be 20k a year. But the money still leaves the company when they buy the machine.