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Mark Ashton on the Price of Football podcast
at 20:20 30 Jun 2023

Just listened to the section of the podcast where the net zero is mentioned. I noted that Mark comments that he is talking about net zero on a cash flow basis rather than a profit and loss basis. If I have understood this correctly in relation to a typical structure of a transfer then this is an important distinction. Our most significant sales have been made in the earlier part of this three year period whilst some of the more significant purchases have been in the last year (including the January transfer window). With the cash transfer payments often being spread over more than one year, including the initial cost and not the add ons, then we have probably now received the likely full value of the cash payments in relation to the initial transfer fee for the more significant sales we have made in this three year period (or even for sales made prior to this three year period but where cash in part was received during this three years period). However, for the most recent purchases we have made, I suspect that the cash payment of the initial fee are still to be made in part beyond this three year period which he mentions. Therefore, on a profit and loss basis, I suspect that we might not be net zero but on a cashflow basis I don't disbelieve what Mark says. However, we will still have cash payments to make in future years for some of the players we have recently purchased where on a profit and loss basis the transfer fees would have already been accounted for. I should mention I am not an accountant and perhaps those with more knowledge could offer a view.

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Jermynblue

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