Balance Sheet

Discussion in 'Transfer forum' started by Daz_Blue, 4 Jul 2017.

  1. Prestwich_Blue

    Prestwich_Blue

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    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.
     
  2. Holcombe bloo

    Holcombe bloo

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    13 Mar 2009
    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?
     
  3. moomey

    moomey

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    25 Sep 2010
    The cost through the P&L is spread across the term of the player's contract is my understanding
     
  4. Rolee

    Rolee

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    22 Jun 2012
    You see this is what happens when we keep signing Arsenal players, we turn into gooners.
     
  5. Blue Coop

    Blue Coop

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    3 Jun 2009
    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.
     
  6. shaiomarali

    shaiomarali

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    4 Jul 2009


    It's a 0161 number as well.
     
  7. Murph

    Murph

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    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?
     
  8. Prestwich_Blue

    Prestwich_Blue

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    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.
     
  9. bluesmith

    bluesmith

    Joined:
    9 Dec 2005
    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.
     
  10. Blue Coop

    Blue Coop

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    3 Jun 2009
    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.
     

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