City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

Regarding amortisation as mentioned by aguero93:20, I can understand the principle in that fees and wages are spread over the length of contract and thus give us a lower annual cost of a transfer window, but surely if it means costs being spread over several seasons then won't amortizations from previous years be added to the current window, giving us a high loss to carry forward for some years yet?
 
I'm no cynic but... said:
Regarding amortisation as mentioned by aguero93:20, I can understand the principle in that fees and wages are spread over the length of contract and thus give us a lower annual cost of a transfer window, but surely if it means costs being spread over several seasons then won't amortizations from previous years be added to the current window, giving us a high loss to carry forward for some years yet?
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Depends on how we manage it and which players leave, for how much, who signs new contracts etc and of course revenue growth.
 
bluekeith said:
If some of the smart people on the site can give this the once over

http://www.forbes.com/sites/bobbymc...ctually-improve-man-citys-financial-position/
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Didn't read it fully but he's coming from the angle that the big amortisation bills from signings 4/5 years ago are now no longer going to hit the P+L, and so they are giving us more than enough room to fund the amortisation of this summers signings. Hence if salary is broadly in line between the ins/outs then we should be more profitable this year.
 
A question for the experts in this sort of thing...

Regarding amortisation, the cost of a player can be spread over the length of his contract, so if he signs a five year contract then his cost [transfer fee + salary] can be spread over five years too and this makes his cost much more reasonable, but what happens if he signs an extension of, say, two years? Can we 'backtrack' over our audited accounts and declare his amortisation as seven years, or are we only able to declare his salary over the two years instead with no mention of his transfer fee?
 
I'm no cynic but... said:
A question for the experts in this sort of thing...

Regarding amortisation, the cost of a player can be spread over the length of his contract, so if he signs a five year contract then his cost [transfer fee + salary] can be spread over five years too and this makes his cost much more reasonable, but what happens if he signs an extension of, say, two years? Can we 'backtrack' over our audited accounts and declare his amortisation as seven years, or are we only able to declare his salary over the two years instead with no mention of his transfer fee?
Click to expand...
I think whatever residual notional amortised value is left at the point the new contract is signed, is amortised over the length of the new contract.
 
I'm no cynic but... said:
A question for the experts in this sort of thing...

Regarding amortisation, the cost of a player can be spread over the length of his contract, so if he signs a five year contract then his cost [transfer fee + salary] can be spread over five years too and this makes his cost much more reasonable, but what happens if he signs an extension of, say, two years? Can we 'backtrack' over our audited accounts and declare his amortisation as seven years, or are we only able to declare his salary over the two years instead with no mention of his transfer fee?
Click to expand...

Not quite. KDB has just signed a 6 year contract with a fee of £55m so his amortization will be £9.18m per annum. What that means is his value on our books is £55m but will decrease by £9.18m p.a. Now say after 3 years and roughly £27.5m of amortization he signs a new 5 year contract (taking him up to 8 years at the club in total). Rather than dividing the original £55m over an 8 year period we divide the remaining £27.5m over the remaining 5 years giving him a yearly amortization charge to the accounts of £5.5m (so in effect he's costing us nearly £4m less every year).
 
gman07 said:
Is there any site that compares PL teams salary for an easy view?
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Not really. Forbes do a decent yearly report and the newspapers/media like to speculate but in reality too many PL clubs are private companies and don't have to reveal their costs to anyone but HMRC. Try googling Forbes Premier League wage bills though.
 
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