| Accounting practices in football . . . 12:51 - Jun 19 with 1385 views | bsw72 |
I would assume that any players we sign we will put them onto (at least) a 5 year contract so that we can spread the cost over that period.
Based on that therefore if we sign a player for £10M (including up front and predicted costs) then the impact on the 2024-2025 books will only be £2M . . . changes the scope of what we can spend / who we can sign. [Post edited 19 Jun 2024 12:53]
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| Accounting practices in football . . . on 12:53 - Jun 19 with 1346 views | PrideOfTheEast |
Plus wages. |  | | |
| Accounting practices in football . . . on 12:55 - Jun 19 with 1317 views | bsw72 |
| Accounting practices in football . . . on 12:53 - Jun 19 by PrideOfTheEast |
Plus wages. |
Yes, good point, plus wages. | | | |
| Accounting practices in football . . . on 12:57 - Jun 19 with 1305 views | topguy |
| Accounting practices in football . . . on 12:53 - Jun 19 by PrideOfTheEast |
Plus wages. |
agreed but say you had 100m and 60m was wages still leaves 40m and if you spread the cost over 4 years that can be 160m 40m a year for 4 years, not that im saying we will spend 160m its an example of how it can be done esp if we stay in the PL league. | | | |
| Accounting practices in football . . . on 13:00 - Jun 19 with 1274 views | GavTWTD |
And the risk that we only have one season in the PL. |  |
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| Accounting practices in football . . . on 13:05 - Jun 19 with 1252 views | tonybied |
| Accounting practices in football . . . on 13:00 - Jun 19 by GavTWTD |
And the risk that we only have one season in the PL. |
Also, the more that is spaffed away this season means less for the next 4, even if we do manage to stay up. |  | | |
| Accounting practices in football . . . on 13:31 - Jun 19 with 1172 views | bsw72 |
| Accounting practices in football . . . on 13:00 - Jun 19 by GavTWTD |
And the risk that we only have one season in the PL. |
I think the bigger risk is relegation after 2 or 3 years as your spend from years 1 and 2 are already accruing, no wonder parachute payments play such a big part, to partially offset these risks.
Where this then starts to go really pear shaped is that player sales are accounted for in full by the club in the year of sale, hence following relegation you can recoup the amortized outlay from prior years most likely in year 1, but after that players will likely lose value and the club will end up with greater losses.
It's a fine balancing act that is for sure . . . | | | |
| Accounting practices in football . . . on 14:00 - Jun 19 with 1115 views | ElephantintheRoom |
Wages and bonuses are probably bigger than the fees at the fag end of the market that Town are operating in. Depends entirely when these are paid - usually fees are spread over three years. But as only about a third of signings are successful this rapidly goes pear shaped. Plus Town’s owners are here to make money - not fritter it away. | |
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| Accounting practices in football . . . on 14:20 - Jun 19 with 1074 views | SmithersJones |
| Accounting practices in football . . . on 14:00 - Jun 19 by ElephantintheRoom |
Wages and bonuses are probably bigger than the fees at the fag end of the market that Town are operating in. Depends entirely when these are paid - usually fees are spread over three years. But as only about a third of signings are successful this rapidly goes pear shaped. Plus Town’s owners are here to make money - not fritter it away. |
When the fee is paid, and over how many instalments, isn’t relevant for PSR/FFP. The fee gets spread over the duration of the contract, to a maximum of five years. This may coincide with the instalments paid but equally may not.
Also remember that each new financial year you don’t start with a blank sheet of paper - the amortised fees from all the players on your books still count as expenditure in that year. So if we sign Omari for £20m on a five year deal it “only” costs us £4m plus wages in the first year, but it the costs us that every year until either we sell him or the five years is up. So the people saying years 2 and 3 are the hard ones certainly have a point. | | | |
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| Accounting practices in football . . . on 14:23 - Jun 19 with 1059 views | FrimleyBlue |
| Accounting practices in football . . . on 13:00 - Jun 19 by GavTWTD |
And the risk that we only have one season in the PL. |
Which is why you've 2 choices.
Spend spend spend to stay up and have a good season.
Keep it tight and see what happens.
I don't think you stay up without spending a massive amount. It no longer seems possible with the prem nowadays.
So I reckon we will spend on the basis that we will be a prem team for the next 3 seasons and signings will be made with that mindset. |  |
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