| Transfer Fees Expenditure Question 15:33 - Jul 9 with 2061 views | Keno |
its seems we are splashing the cash and there have been comments about being able to spend £90mill which we are getting close too
However, bearing in mind the comments about amortisation, if we pay £20mill for someone on a 5 year contract are we deemed to have spent £20mill or is that divided by 5 so that we are deemed to have spent £4mill
Obviously it could make a hoooge difference |  |
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| Transfer Fees Expenditure Question on 16:46 - Jul 9 with 1883 views | Swansea_Blue |
Amortised values go into the accounts and I assume it’s the official accounts that are used for PSR/FFP. Or at least a draft P&L position, as the timings don’t quite add up with accounts normally signed off after the FFP deadline. If that makes any sense? |  |
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| Transfer Fees Expenditure Question on 16:47 - Jul 9 with 1870 views | Keno |
| Transfer Fees Expenditure Question on 16:46 - Jul 9 by Swansea_Blue |
Amortised values go into the accounts and I assume it’s the official accounts that are used for PSR/FFP. Or at least a draft P&L position, as the timings don’t quite add up with accounts normally signed off after the FFP deadline. If that makes any sense? |
where's the Elephant Man when you need him ti explain things for you | |
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| Transfer Fees Expenditure Question on 16:57 - Jul 9 with 1809 views | FrimleyBlue |
It's not really about what we can spend. It's more what we can lose.
It's approx £63 Mill loss allowable.
But when you think of the TV funds. Commercial hospitality. Sponsorships etc etc I think we can be confident in this ownership group and its bankers to know exactly where our limits are.
I expected somewhere in the region of a 80-100 mill spend. So that gets us about 8-9 signings I reckon.
You're right keno in that the fees are divided for the purposes of ffp. So hutch fee is divided by 4.
[Post edited 9 Jul 2024 17:00]
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| Transfer Fees Expenditure Question on 17:01 - Jul 9 with 1795 views | BlueBoots |
I think a lot of people don't quite grasp how radically promotion has changed our finances - we're looking at around £100m minimum in TV revenue for the season, and even if the worst were to happen and we finish bottom of the Prem, we'd receive another £100m in prize money (and about half that again in a first season of parachute payments). So about £250m guaranteed, regardless of how well we do.
I suppose it's up to clubs how they want to run transfer payments through the accounts - if you're borderline on PSR and receiving, put it all through as one payment; if you're spending can do that if you have headroom, otherwise can stretch the payment out over the length of the contract. |  |
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| Transfer Fees Expenditure Question on 17:09 - Jul 9 with 1754 views | SmithersJones |
| Transfer Fees Expenditure Question on 17:01 - Jul 9 by BlueBoots |
I think a lot of people don't quite grasp how radically promotion has changed our finances - we're looking at around £100m minimum in TV revenue for the season, and even if the worst were to happen and we finish bottom of the Prem, we'd receive another £100m in prize money (and about half that again in a first season of parachute payments). So about £250m guaranteed, regardless of how well we do.
I suppose it's up to clubs how they want to run transfer payments through the accounts - if you're borderline on PSR and receiving, put it all through as one payment; if you're spending can do that if you have headroom, otherwise can stretch the payment out over the length of the contract. |
I’m pretty sure all fees received have to go into the accounts of the year the transfer is completed, even if the cash is actually received in instalments. It’s only expenditure which gets spread over the contract (which sounds odd but sort of makes sense - if a player’s been sold there’s no contract to spread the payment over). |  | | |
| Transfer Fees Expenditure Question on 17:28 - Jul 9 with 1673 views | ElephantintheRoom |
Transfer fees are almost incidental compared to excessive wages.
Basically it’s a huge gamble on being able to survive after relegation - by which time none of the key gamblers plan on being here. | |
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| Transfer Fees Expenditure Question on 17:28 - Jul 9 with 1678 views | Tonytown |
| Transfer Fees Expenditure Question on 17:09 - Jul 9 by SmithersJones |
I’m pretty sure all fees received have to go into the accounts of the year the transfer is completed, even if the cash is actually received in instalments. It’s only expenditure which gets spread over the contract (which sounds odd but sort of makes sense - if a player’s been sold there’s no contract to spread the payment over). |
Only fees for home developed players are banked immediately which is why the clubs were spending fortunes on each others young players to get around the rules.
If we sold Wolfy for £20m it’s all banked this year, but £20m for Burgess is split over the length of his contract with the new club. | | | |
| Transfer Fees Expenditure Question on 17:37 - Jul 9 with 1626 views | HighgateBlue |
| Transfer Fees Expenditure Question on 16:46 - Jul 9 by Swansea_Blue |
Amortised values go into the accounts and I assume it’s the official accounts that are used for PSR/FFP. Or at least a draft P&L position, as the timings don’t quite add up with accounts normally signed off after the FFP deadline. If that makes any sense? |
Yes it is the official accounts, with the year end being allowed to fall within a window of a few months. If the official accounts do not fall within that window, a club produces accounts specifically for the purpose of compliance with the Premier League's Rules. |  | | |
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| 6/10, it had potential.... on 17:57 - Jul 9 with 1566 views | Bloots |
| Transfer Fees Expenditure Question on 17:28 - Jul 9 by ElephantintheRoom |
Transfer fees are almost incidental compared to excessive wages.
Basically it’s a huge gamble on being able to survive after relegation - by which time none of the key gamblers plan on being here. |
....but you failed to "show your workings" so the potential impact was lost.
Maybe we can "workshop" your witterings before you post them in the future.
I'm here to help. |  |
| "He's been a really positive influence on my life, I think he's a great man" - TWTD User (May 2025) |
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| Transfer Fees Expenditure Question on 18:47 - Jul 9 with 1422 views | xrayspecs |
| Transfer Fees Expenditure Question on 17:01 - Jul 9 by BlueBoots |
I think a lot of people don't quite grasp how radically promotion has changed our finances - we're looking at around £100m minimum in TV revenue for the season, and even if the worst were to happen and we finish bottom of the Prem, we'd receive another £100m in prize money (and about half that again in a first season of parachute payments). So about £250m guaranteed, regardless of how well we do.
I suppose it's up to clubs how they want to run transfer payments through the accounts - if you're borderline on PSR and receiving, put it all through as one payment; if you're spending can do that if you have headroom, otherwise can stretch the payment out over the length of the contract. |
That is not right. TV money is circa £100m. Prize money starts at £3m for 20th and increases by around £3m per position. City got around £60m prize money.
You get circa 45% of the TV money in first season after relegation and 35% the following season. so around £180m guaranteed.
There are strict accounting rules regarding player purchases (cost spread across contract) and sales (net profit booked at the point of sale). | | | |
| Transfer Fees Expenditure Question on 18:47 - Jul 9 with 1416 views | xrayspecs |
| Transfer Fees Expenditure Question on 17:28 - Jul 9 by Tonytown |
Only fees for home developed players are banked immediately which is why the clubs were spending fortunes on each others young players to get around the rules.
If we sold Wolfy for £20m it’s all banked this year, but £20m for Burgess is split over the length of his contract with the new club. |
Wrong.
Net profit on Burgess would be banked at the point of sale.
The accounts treat all player sales the same. [Post edited 9 Jul 2024 18:49]
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| Transfer Fees Expenditure Question on 18:50 - Jul 9 with 1383 views | southnorfolkblue |
I think it’s the latter as that’s why Chelsea were putting their players on ludicrously long contracts | |
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| 6/10, it had potential.... on 19:02 - Jul 9 with 1320 views | ElephantintheRoom |
| 6/10, it had potential.... on 17:57 - Jul 9 by Bloots |
....but you failed to "show your workings" so the potential impact was lost.
Maybe we can "workshop" your witterings before you post them in the future.
I'm here to help. |
Sorry. Thought you could cope with basic maths | |
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| Transfer Fees Expenditure Question on 19:06 - Jul 9 with 1302 views | SmithersJones |
| Transfer Fees Expenditure Question on 18:47 - Jul 9 by xrayspecs |
Wrong.
Net profit on Burgess would be banked at the point of sale.
The accounts treat all player sales the same. [Post edited 9 Jul 2024 18:49]
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You’re correct | | | |
| It's basic economics... on 19:07 - Jul 9 with 1298 views | Bloots |
| 6/10, it had potential.... on 19:02 - Jul 9 by ElephantintheRoom |
Sorry. Thought you could cope with basic maths |
...not maths.
Shape up Grandad. | |
| "He's been a really positive influence on my life, I think he's a great man" - TWTD User (May 2025) |
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| Transfer Fees Expenditure Question on 19:28 - Jul 9 with 1222 views | Stewart27 |
| Transfer Fees Expenditure Question on 17:28 - Jul 9 by ElephantintheRoom |
Transfer fees are almost incidental compared to excessive wages.
Basically it’s a huge gamble on being able to survive after relegation - by which time none of the key gamblers plan on being here. |
How many premier league teams haven’t survived relegation since the beginning of the premier league? | | | |
| Transfer Fees Expenditure Question on 19:30 - Jul 9 with 1212 views | DinDjarin |
| Transfer Fees Expenditure Question on 18:47 - Jul 9 by xrayspecs |
That is not right. TV money is circa £100m. Prize money starts at £3m for 20th and increases by around £3m per position. City got around £60m prize money.
You get circa 45% of the TV money in first season after relegation and 35% the following season. so around £180m guaranteed.
There are strict accounting rules regarding player purchases (cost spread across contract) and sales (net profit booked at the point of sale). |
You get less parachute money if only in premier for 1 season |  | | |
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