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

[Matty]

His wages won't affect capital asset costs. Total player costs yes, but that's payroll.

True, but from an FFP perspective, it all gets rolled up into the "costs" column when it comes to determining your profit/loss figure.

 

[aguero93:20]

True, but from an FFP perspective, it all gets rolled up into the "costs" column when it comes to determining your profit/loss figure.

True.

 

[doomgob]

True.

An aside: Do players get depreciated in accounts? If so, what method?

 

[Chippy_boy]

An aside: Do players get depreciated in accounts? If so, what method?

Straight line over the contract period.

 

[doomgob]

Cheers

 

[EalingBlue2]

Straight line over the contract period.

Unless they get extended in which case remaining amortisation is spread over he extension . Hence contract extensions for aguero, silva, nasri etc all helped the p and l

One way we could have always got around FFP would be to sell a home grown player or low book value player to NY and then buy them back thus creating a p and l value to benefit and then effectively getting their services back but amortised. A very common trick used by business to boost short term p and l issues with sale and lease back etc etc

 

[FanchesterCity]

Out of curiosity and using easy figures...

If a player is bought for 100m on a 5 year contract, his book value diminishes by 20m per year right?
If in his last year, he's worth 20m on the books and you extend for another 5 years, then he'll depreciate at 4m a year right?
But what if you let the full 5 years expire (theoretical book value of 0), then renew. What is his book value deemed to be? (zero?) and is there any sort of 'bridging' contract that could allow a player after 4 years, to agree to renew after 5, but not technically do so (thus being able to have zero book value without running the risk of him leaving on a free)?

 

[aguero93:20]

Out of curiosity and using easy figures...

If a player is bought for 100m on a 5 year contract, his book value diminishes by 20m per year right?
If in his last year, he's worth 20m on the books and you extend for another 5 years, then he'll depreciate at 4m a year right?
But what if you let the full 5 years expire (theoretical book value of 0), then renew. What is his book value deemed to be? (zero?) and is there any sort of 'bridging' contract that could allow a player after 4 years, to agree to renew after 5, but not technically do so (thus being able to have zero book value without running the risk of him leaving on a free)?

To answer the first part yes his book value would be zero although you could attach a valuation in the accounts.
Second it would depend on the FA rules, a binding pre-contract might be possible.

 

[Blueknows]

Yep, with Jovetic expected to go too we'll, in accountancy terms, have a profit on 'player trading' as they call it this summer.

And dont forget the 24 million for Negredo agreed fee falls into this years accounts

 

[FanchesterCity]

I thought the Negredo money was already counted? Usually money is accrued when the contract is agreed not when they actually pay which can be much later.
Or is this wrong?