40M Bid from Corinthians

[Marvin]

Well Tevez's amortisation fee outstanding depending on how much we paid is probably between 15m -18m so I suspect we would want that much up front, the rest could be over the length of his new contract. Only guessing.

Amortisation relates to accounting treatment, not real cash flows.

Deals may well be paid in instalments, but that's coincidental

 

[kenzie115]

Well Tevez's amortisation fee outstanding depending on how much we paid is probably between 15m -18m so I suspect we would want that much up front, the rest could be over the length of his new contract. Only guessing.

Amortisation relates to accounting treatment, not real cash flows.

Deals may well be paid in instalments, but that's coincidental

Plus I don't think Tevez's transfer fee counts towards FFPR as he was signed before June 2010?

 

[Jackson-ctid]

Well Tevez's amortisation fee outstanding depending on how much we paid is probably between 15m -18m so I suspect we would want that much up front, the rest could be over the length of his new contract. Only guessing.

Amortisation relates to accounting treatment, not real cash flows.

Deals may well be paid in instalments, but that's coincidental

Plus I don't think Tevez's transfer fee counts towards FFPR as he was signed before June 2010?

?

Of course it does, any transfer fees we receive count as club income in the same way that any transfer fees paid are club expenditure.

 

[okstate99]

Well Tevez's amortisation fee outstanding depending on how much we paid is probably between 15m -18m so I suspect we would want that much up front, the rest could be over the length of his new contract. Only guessing.

Amortisation relates to accounting treatment, not real cash flows.

Deals may well be paid in instalments, but that's coincidental

Plus I don't think Tevez's transfer fee counts towards FFPR as he was signed before June 2010?

His wages dont, but all transfer sales count.

 

[LoveCity]

The official Corinthians store has already ordered 700 shirts with Tevez's name printed on the back. [ESPN Brazil]

 

[mike channon´s windmill]

The official Corinthians store has already ordered 700 shirts with Tevez's name printed on the back. [ESPN Brazil]

Silly fookers - they should have put "Robinho" on them ;)

 

[Marvin]

Well Tevez's amortisation fee outstanding depending on how much we paid is probably between 15m -18m so I suspect we would want that much up front, the rest could be over the length of his new contract. Only guessing.

Amortisation relates to accounting treatment, not real cash flows.

Deals may well be paid in instalments, but that's coincidental

Plus I don't think Tevez's transfer fee counts towards FFPR as he was signed before June 2010?

I am going to hide my ignorance by referring to the relevant section of the FFPR

For a club that uses the ‘capitalisation and amortisation’ method of
accounting for player registrations, profit on disposal of a player’s
registration is calculated by deducting the net book value of the player’s
registration at the time of the transfer, from the net disposal proceeds
received and receivable.

A profit on disposal of a player’s registration will be reported if the net
disposal proceeds exceed the net book value of the player’s registration
at the time of the transfer. Any such profit must be included within
relevant income for the calculation of the break-even result.

For a club that uses the ‘income and expense’ method of accounting for
player registrations, income from disposal of a player’s registration is the
net disposal proceeds generated from the transfer of the player’s
registration to another club. The net disposal proceeds should equate to
the monetary income from the disposal of the player’s registration.
For the purpose of the break-even calculation:

For clubs which use the ‘capitalisation and amortisation’ method of
accounting for player registrations in their annual financial statements,
relevant income and relevant expenses must reflect this same accounting
treatment;

For clubs which use the ‘income and expense’ method of accounting for
player registrations in their annual financial statements, the club can elect
to apply either the ‘income and expense’ or the ‘capitalisation and
amortisation’ method. The selected treatment must be applied on a
consistent basis from one reporting period to the next.

 

[Rammyblues]

LoveCity wrote:
The official Corinthians store has already ordered 700 shirts with Tevez's name printed on the back. [ESPN Brazil]

Deal done then:-)

In respect of amortisation not using that for FFPR but just as a way of calculating a benchmark figure of how much might be in the down payment. Just the same way we calculated the Robinho fee to AC MIlan

i.e Robinho was signed for 32m over 5 years ie 6m a year, he spent one year with us and a year on loan having three years left of transfer fee ie 6 x 3 = 18m. Same with tevez if we signed him for 30m over five years ie. 6m a year he likewise has had two years with us so the value of that contract again is 18m.

 

[bluesince76]

The official Corinthians store has already ordered 700 shirts with Tevez's name printed on the back. [ESPN Brazil]

Only 700? That's not going to pay back the fee

 

[Rammyblues]

Does quick calculation only 57,142 pounds each.