2021 Transfer Kitty

[handsofstone]

Can someone who know about amortisation clarify something

Take Walker for example, we paid £50mil on him (ok £45mil plus add ons but for this point £50mil is easier)

Signed in 2017, 5 year deal, £50mil
So he is down as £10mil per season

So when he renewed in 2019 on a 5 year deal (7 total)

So my question is which scenario applies
A. His cost at the time of renewing was £30mil as he was two years through, so does his amortisation class as £6mil per season now, £30m/5years
B. His total cost £50mil now divide by 7, so £7.2mil per year. Surely that wouldn't work as you would have to go back and change the accounts for the previous years

 

[citizen_maine]

Can someone who know about amortisation clarify something

Take Walker for example, we paid £50mil on him (ok £45mil plus add ons but for this point £50mil is easier)

Signed in 2017, 5 year deal, £50mil
So he is down as £10mil per season

So when he renewed in 2019 on a 5 year deal (7 total)

So my question is which scenario applies
A. His cost at the time of renewing was £30mil as he was two years through, so does his amortisation class as £6mil per season now, £30m/5years
B. His total cost £50mil now divide by 7, so £7.2mil per year. Surely that wouldn't work as you would have to go back and change the accounts for the previous years

You've answered your own question :-)

 

[handsofstone]

You've answered your own question :-)

But is it A or B...

 

[domalino]

But is it A or B...

A

 

[handsofstone]

A

Ta

 

[Maly]

Seen some speculation on this. Obviously our losses last year were sizable. Not sure how this will be met in future years but we had been pretty stable over several years previously.
Assuming we can meet the deficit through revenue streams, what is our realistic kitty this year??
In pure amortisation terms we have Stones, Mr Whippy, Jesus and Sane off the books ( he left last summer but tripped over into this year's accounts)
With those fees leaving our books (assuming 5 year contracts and no extensions reducing but extending amortisation) we could have in the region £150 to play with before sales.
Kun and Fern leaving :-( would give us some huge wages to play with also.
Anyone got a different take or heard differently...

We’re not signing anyone if all we’ve got is £150 to play with!!

 

[Mid Wales blue]

250 mill max
70-90 mill haaland
25 -30 mill left back
70-80grealish
30 -40 yvess bissouma

Who the fuck is Max, and why pay £250 million for him!


;-)

 

[Maly]

Income for each season from the prem and CL

Year	Premier League £m	Champs League £m
11/12	61	21
12/13	58	25
13/14	97	28
14/15	99	39
15/16	97	73
16/17	147	22
17/18	149	56
18/19	151	81
19/20	168	86

Total = £1.458 Bn

Figures are from UEFA published payment reports and Premier League website rounded up to nearest million. Champs League money converted using average exchange rate from Euro for given year.

Don't have the figures for League Cup and FA cup but they are relatively small by comparison, as a maximum over the last 10yrs maybe £8m total.

Those figures can’t be correct as that would suggested we’ve only bought players from money we’ve earned.

I’ve heard only United & Liverpool buy players with earned money ;)

 

[Hart of the Matter]

That would be great but according to spotrac.com:

Mendy: is on a 6 year contract starting 2017-18 and ending 22-23. So according to them, 2 more seasons before he is off the books. However, several newspapers reported his initial contract as lasting 5 years.

Silva: signed a 5 year contract in 2017 which would have taken him to 21-22 but signed a new 6 year contract in 2019. That will have reduced the yearly amortisation charge from 2019-20 but will not be off the books until 2025.

Walker: signed a 5 year contract from 2017 (also due to end 2022) but new 5 year contract signed in 2019. Will be on the books until 2024.

Laporte: Initial 5.5 year contract from Jan 2018. 6.5 yr contract in Feb 2019. Off books end of 2024-25 season

Ederson: On a 5 year contract 2017-18, which should end next year. However, it was widely reported that he signed a 7 year extension during his first season at City and that he is contracted until 2025.

Looks like yearly amortisation savings have been made by contract extensions but that none of these will be ending next year.

Thanks for the updates. Perhaps contract extensions for Laporte, Dias, Mahrez and Cancelo would free up some amortised costs...?

 

[WRicko]

Thanks for the updates. Perhaps contract extensions for Laporte, Dias, Mahrez and Cancelo would free up some amortised costs...?

Amortization does not come off the books till the player leaves unless the player runs his contract down and then sign a new deal
at his old club as free agent which doesn’t happen and does not make sense too risky

So it can only be reduced even if it’s negligible it’s still on the books to a degree