| Something I don't understand about McKenna possibly going to Fulham 22:34 - Jun 2 with 3368 views | Pique |
Why is his release clause of £8 million (or whatever it turns out to be) considered to be such a potential stumbling block for Fulham or any other interested parties?
This is consistently mentioned (not just on TWTD) as something so prohibitive that it may put off suitors, but it's £8 million. In the Premier League. Your average Premier League club could spend that on a fourth choice left back, loan him out to the Championship and not even notice the money has gone. So why would it be such a major issue if they were trying to recruit a top level manager?
I don't get it. What am I missing? |  | | |  |
| Something I don't understand about McKenna possibly going to Fulham on 11:20 - Jun 3 with 393 views | WeWereZombies |
| Something I don't understand about McKenna possibly going to Fulham on 10:52 - Jun 3 by BlueandTruesince82 |
Think Glasner has his sights set higher, was frustrated at Palace and Fulham arent exactly looking at being abused more ambitious than staying in the Premier league.
Maresca is supposed to be going to City |
Ah, so you are saying that if McKenna goes to Fulham then Glasner comes to Town ? |  |
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| Something I don't understand about McKenna possibly going to Fulham on 11:26 - Jun 3 with 364 views | NedPlimpton |
| Something I don't understand about McKenna possibly going to Fulham on 10:45 - Jun 3 by itfc48 |
Talksport reporting he’s interested. I think McKenna will know it’s a poisoned chalice and feel it might be his agent trying to force our hand on an improved contracted given he’s only got 2 years left. |
Sorry, why is Fulham a poisoned chalice? |  | | |
| Something I don't understand about McKenna possibly going to Fulham on 12:22 - Jun 3 with 303 views | blue90 |
I think that a manager is the most important person at the club. If I were lucky enough to be an owner I would absolutely pay 8m for who I thought was the right person, rather than get someone cheaper and have more PSR room for a new player. Look at PSG, Enrique realised Mbappe couldn't play in his system and was happy for him to move on. A case of manager / system being more important than one player (the best player in the world) and look how that worked out.. |  | | |
| Something I don't understand about McKenna possibly going to Fulham on 12:26 - Jun 3 with 290 views | Guthrum |
| Something I don't understand about McKenna possibly going to Fulham on 11:02 - Jun 3 by TRUE_BLUE123 |
I'm sure he is genuinely considering it. He would be silly not to.
I'm sure he is also considering staying. |
Indeed. |  |
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| Something I don't understand about McKenna possibly going to Fulham on 12:52 - Jun 3 with 221 views | MJallday |
fulham have had 8 managers in 12 years.
if he ges them relegated. he'd be gone before the end of the season
if he gets us relegated, he'd be given at least another 2 seasons
theres a lot to be said of staying where you are - unless they quadruple your money. |  |
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| Something I don't understand about McKenna possibly going to Fulham on 13:01 - Jun 3 with 203 views | GavTWTD |
| Something I don't understand about McKenna possibly going to Fulham on 22:47 - Jun 2 by SuffolkPunchFC |
There are significant differences for the club’s finance :
- the compensation cannot be amortised over the length of the contract; it immediately impacts the current year’s accounts
- the manager isn’t an assets, so doesn’t have a positive value on the books
- there is no potential upside / profit in a future sale, as there is with a player |
I would say that if there's an £8m clause on KM now, Fulham could add a £10m clause on a contract similarly. It really shouldn't be a reason to discount him at all. |  |
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| Something I don't understand about McKenna possibly going to Fulham on 13:19 - Jun 3 with 157 views | SuffolkPunchFC |
| Something I don't understand about McKenna possibly going to Fulham on 13:01 - Jun 3 by GavTWTD |
I would say that if there's an £8m clause on KM now, Fulham could add a £10m clause on a contract similarly. It really shouldn't be a reason to discount him at all. |
Yes, they could do that , but I'm pretty sure that can't be recognised as an asset on the accounts so wouldn't mitigate the immediate impact on their accounts. As I posted elsewhere, from an accounts perspective that £8M compensation payment would impact the current year's accounts, and is roughly equivalent to losing the opportunity to bring on board a player for £20M and on £65k/week over a 4 year contract.
It's no reason to discount him, but would have a significant impact on Fulham's accounts given the revenue level they work at. I cannot imagine this is not a consideration. [Post edited 3 Jun 17:20]
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| Something I don't understand about McKenna possibly going to Fulham on 13:39 - Jun 3 with 121 views | Bellevue_Blue |
| Something I don't understand about McKenna possibly going to Fulham on 23:20 - Jun 2 by SuffolkPunchFC |
The player is always an asset to some extent, even those that are not resold for a profit. And from a bookkeeping perspective, the value will be reduced each year of the contract. So a player bought for £8M on a 4 year contract can be sold for £6M after 2 years, and that is a positive £2M to that year’s accounts.
The injury risk is also likely well mitigated against with insurance.
None of this is applicable to a manager.
It’s all the subtle details of how club’s accounts and financial compliance is measured.
Last year Fulham had £194.5M revenue with £166.5M staff costs - exactly on the new 85% ratio. £8M for manager contract buyout would have pushed them to 90%, moving compliance from Green to Amber, requiring a reduction in the following year or two. That £8 paid out to bring a manager would probably equate to not being able the buy a £20M player on £65k/wk - to a decent signing.
Edited : to adjust the numbers, as I'd overegged the player equivalence. [Post edited 3 Jun 17:24]
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A very good summary.
Though a relatively small amount, it makes a huge difference in the grand scheme of things. | | | |
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