Balance Sheet

It's the P&L account that's more important.

2 players in for a combined £88m on 5 year contracts equates to £17.6m a year on the bottom line.

Mooy was a free so that initial £8m is pure profit. Unal cost just over £4m two seasons ago, so will be on the books at £2.5m. That gives us a profit of £9.4m on the reported £11.9m fee. So that's a total profit of £17.4m this year against an expense of £17.6m in the same financial year.
 
It's the P&L account that's more important.

2 players in for a combined £88m on 5 year contracts equates to £17.6m a year on the bottom line.

Mooy was a free so that initial £8m is pure profit. Unal cost just over £4m two seasons ago, so will be on the books at £2.5m. That gives us a profit of £9.4m on the reported £11.9m fee. So that's a total profit of £17.4m this year against an expense of £17.6m in the same financial year.
Hi PB quick question: In accounts terms if we sell a player for 50m does the 50m go on this years accounts as incoming or spread over the term the club pay for the player ie 2,3,4 years?
 
Hi PB quick question: In accounts terms if we sell a player for 50m does the 50m go on this years accounts as incoming or spread over the term the club pay for the player ie 2,3,4 years?

The cost through the P&L is spread across the term of the player's contract is my understanding
 
You see this is what happens when we keep signing Arsenal players, we turn into gooners.
 
Hi PB quick question: In accounts terms if we sell a player for 50m does the 50m go on this years accounts as incoming or spread over the term the club pay for the player ie 2,3,4 years?
Selling players is instant but depends on their current "value" to the club. Let's say we signed a player 2 years ago for £40m on a 4 year deal (he's now worth £20m in our accounts. £40m less £10m x2 years).

If we sold that player for £40m again we'd have a £20m instant profit, if we sold him for £10m we'd have an additional £10m loss. The value in impacts the bottom line depending on its difference to the existing player value. Selling a player for £50m would rarely ever mean recognising a £50m instant profit.
 
Anyone know the value of our likely outgoing's on the books? Just wonder how much we'd need to recoup for the likes of Mangala, Bony, Nasri, Fernando etc so we don't show a loss. Hart would have zero value I'm assuming, so any fee would be profit?
 
Hi PB quick question: In accounts terms if we sell a player for 50m does the 50m go on this years accounts as incoming or spread over the term the club pay for the player ie 2,3,4 years?
Bit more complicated than that. When we buy a player it's spread do a £50m player would be amortised at £10m a year. If we sell him we subtract the unamortised value from the fee received. So if we sell for £35m after 3 years we'll have him on the books at £20m, having written off 3 x £10m, giving us a profit of £15m. We'll take all that profit in the year we sell him.
 
Selling players is instant but depends on their current "value" to the club. Let's say we signed a player 2 years ago for £40m on a 4 year deal (he's now worth £20m in our accounts. £40m less £10m x2 years).

If we sold that player for £40m again we'd have a £20m instant profit, if we sold him for £10m we'd have an additional £10m loss. The value in impacts the bottom line depending on its difference to the existing player value. Selling a player for £50m would rarely ever mean recognising a £50m instant profit.
The above would be right unless a new contract was signed. If that was the case the remaining value is spread out over the new contract period, which reduces the amount booked each year.
 
The above would be right unless a new contract was signed. If that was the case the remaining value is spread out over the new contract period, which reduces the amount booked each year.
That's probably at club discretion, aslong as they are completely consistent across all player contracts.

But yes that could impact the existing balance sheet value.
 

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.