| Paying-up a contract 19:53 - Jan 11 with 1422 views | Zx1988 |
Just to touch on my point in the Kyle Edwards thread, can anyone offer any insight on how mutually-agreed terminations tend to work?
Is it often as simple as offering a reduced lump-sum based on the value of the remaining contract if seen out to term? Or does it tend to be more complex than that? |  |
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| Paying-up a contract on 19:56 - Jan 11 with 1401 views | SmithersJones |
It’s “mutually agreed” so it can be pretty much anything. However in Edwards’s case he’s unlikely to play much for the rest of the season due to injury so I suspect he’ll have had most if not all of it paid up. One advantage for him is that if he recovers in, say, early March he could sign for Oxford as a free agent. | | | |
| Paying-up a contract on 20:49 - Jan 11 with 1146 views | NthQldITFC |
Also, I've been idly wondering whether the settlement adds to our FFP (thingy) outgoings? Although presumably it is less than the rest of his contract would have cost, so is a net gain to us in FFP (thingy) terms assuming it can be paid in stages? |  |
| # WE ARE STEALING THE FUTURE FROM OUR CHILDREN --- WE MUST CHANGE COURSE # | | Poll: | It's driving me nuts |
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| Paying-up a contract on 21:31 - Jan 11 with 996 views | homer_123 |
| Paying-up a contract on 19:56 - Jan 11 by SmithersJones |
It’s “mutually agreed” so it can be pretty much anything. However in Edwards’s case he’s unlikely to play much for the rest of the season due to injury so I suspect he’ll have had most if not all of it paid up. One advantage for him is that if he recovers in, say, early March he could sign for Oxford as a free agent. |
I love Edwards...quality player. I'm glad we've done right by him. |  |
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| Paying-up a contract on 21:36 - Jan 11 with 972 views | FrimleyBlue |
| Paying-up a contract on 20:49 - Jan 11 by NthQldITFC |
Also, I've been idly wondering whether the settlement adds to our FFP (thingy) outgoings? Although presumably it is less than the rest of his contract would have cost, so is a net gain to us in FFP (thingy) terms assuming it can be paid in stages? |
I'm wondering if we did a deal to let him go for free without any pay off so he could achieve a better sign on fee when he signs for another club plus he can pick up his own insurance from the pfa.
Think someone mentioned town would have insurance to cover the clubs wages on an injured player... I'd be surprised if this is the case, that we paid him off which would have an effect on ffp when we could have received insurance payments to pay his wages and not effect ffp. |  |
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| Paying-up a contract on 21:44 - Jan 11 with 941 views | DarkBrandon |
| Paying-up a contract on 20:49 - Jan 11 by NthQldITFC |
Also, I've been idly wondering whether the settlement adds to our FFP (thingy) outgoings? Although presumably it is less than the rest of his contract would have cost, so is a net gain to us in FFP (thingy) terms assuming it can be paid in stages? |
Six months of his contract isn’t going to make a huge difference to our FPP position.
But you’d think we would be marginally better off having settled. |  | | |
| Paying-up a contract on 21:51 - Jan 11 with 891 views | Zx1988 |
| Paying-up a contract on 21:44 - Jan 11 by DarkBrandon |
Six months of his contract isn’t going to make a huge difference to our FPP position.
But you’d think we would be marginally better off having settled. |
That was my thinking - that there'd need to be a financial advantage to Town for them to settle the remainder of Edwards' contract.
Part of my professional role involves valuing future income streams, so I'd normally expect an up-front payment of a financial commitment payable over a period of time to be valued at a discount compared to the total sum receivable over the term. Although my involvement tends to be with sums payable over a number of years, rather than the fag-end of a contract of employment.
For example, the right to receive £100 per annum for the next hundred years may only be worth £1,000-£2,000 today. | |
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