It's Quiet - a new dawn

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I don't get it when people use amortisation of transfer fees to say that we have spent less, as surely we are currently paying for all our previous amortised transfers as well which would balance out the net spends to our average summer spending anyway? And surely any decent fee outgoings are also amortised?

You may have guessed I'm not an accountant lol
 
I don't get it when people use amortisation of transfer fees to say that we have spent less, as surely we are currently paying for all our previous amortised transfers as well which would balance out the net spends to our average summer spending anyway? And surely any decent fee outgoings are also amortised?

You may have guessed I'm not an accountant lol
I would suggest you go straight to the FFP regulations from UEFA and read the Annex on the calculation of the break-even result. easily found online. Explains it better than I can, and I'd make a mistake as I am not an accountant. I'll have a go though!

As far as I understand if you buy a player for £10m over a 5 year contract, you could put that down as an expense for £2m in every reporting period up until the 5th year when the cost has gone through the 'books'. In the meantime if you sell the player then you take the proceeds and deduct the remaining cost, and that goes down as revenue (if it's a profit), and importantly it no longer goes through any more as an amortising cost

So I think it is more or less accurate to offset the amortising cost of player purchases that we have made this season against sales proceeds. You might think well wont we have to pay for those costs again next season, but a sale stops the amortisation cost process. If you sell at a loss then that is regarded as an expense.

I've probably got it wrong myself, but if so I am sure someone will correct my mistakes.
 
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I would suggest you go straight to the FFP regulations from UEFA and read the Annex on the calculation of the break-even result. easily found online. Explains it better than I can, and I'd make a mistake as I am not an accountant. I'll have a go though!

As far as I understand if you buy a player for £10m over a 5 year contract, you could put that down as an expense for £2m in every reporting period up until the 5th year when the cost has gone through the 'books'. In the meantime if you sell the player then you take the proceeds and deduct the remaining cost, and that goes down as revenue (if it's a profit), and importantly it no longer goes through any more as an amortising cost

So I think it is more or less accurate to offset the amortising cost of player purchases that we have made this season against sales proceeds. You might think well wont we have to pay for those costs again next season, but a sale stops the amortisation cost process. If you sell at a loss then that is regarded as an expense.

I've probably got it wrong myself, but if so I am sure someone will correct my mistakes.
Nice one Marv, I often wonder. Ties in with what someone calculated on the it's quiet thread about us having approx. £125m to spend over a 5 year contract before further sales are taken into account. Let's hope that equals Mbappe.
 
I would suggest you go straight to the FFP regulations from UEFA and read the Annex on the calculation of the break-even result....

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I don't think we are currently in a position to do so, but moving forwards we will eventually start to see some movement from the EDS to the first team.

Whether it happens now or in 2 years etc, it will always be a risk simply because they will be unproven.

At some point the risk will need to be taken.
I dont disagree, but dont see it being this season
 
i'm not a Txiki basher by an stretch but i wouldn't consider it performing miracles, we're practically giving away most of them. The only players we're getting decent fees for are the ones that have never played for us. Delph is an England international and there's bang average championship players going for more than him.
I know where you're coming from however if it was easy as giving them away we'd have managed it any point over the last 9 years. We haven't though, and that's cos we are known as the richest club in the world who dont need the cash, consequently we end up loaning our high earners out at the end of the window. This summer we are standing our ground and insisting on permanent deals as much as possible and hence yes I would class it as a miracle if he gets rid of the rest on permanents.
 
I dont disagree, but dont see it being this season

Agree. Whether we like it or not - this is a big season for Pep and the club. We really need to make a statement and when we rotate there can be no step down in quality. Once we are established as the best team in the league with a clear way of playing it will become easier to drop kids into that system.
 
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