Did we not create a provision for the rest of it that will now be released? I try to avoid our football finances.
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UEFA: City have exited FFP settlement regime
- Thread starter Ric
- Start date
Prestwich_Blue
Well-Known Member
More than likely but it won't impact the bottom line as it would all have been in the balance sheet.Did we not create a provision for the rest of it that will now be released? I try to avoid our football finances.
jimmygrimblesboots
Well-Known Member
Does this mean Blatter and Platini have to give their 10% "commission"back ?
BertTrautmann'sParachute
Well-Known Member
Did we actually give them the whole 60 million in the first place, PB?More than likely but it won't impact the bottom line as it would all have been in the balance sheet.
Prestwich_Blue
Well-Known Member
Just checked and as far as I can see the basis of the settlement was that €60m would be withheld from the CL prize money we earned over the three years of the settlement period. Of that, €20m would be irrevocably held back and the other €40m conditionally withheld until we complied, at which point it would be released to us.Did we actually give them the whole 60 million in the first place, PB?
We definitely put the €20m through the accounts as an expense straight away so that suggests it was withheld from that season's CL revenue but I was under the impression we've accounted in full for subsequent CL revenues (although we may have put a provision in the balance sheet). If that's the case then there will be no impact on the bottom line but if we haven't (and I'll need to check the accounts against UEFA's distribution statements) then our profit figure this year will benefit to the tune of €40m (£33m).
aguero93:20
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It depends on how it was provided for, we could well have deferred the income until we were able to exit the settlement, in which case it would go into the p&l. Not too sure we did though, as the revenue has shown healthy growth.Just checked and as far as I can see the basis of the settlement was that €60m would be withheld from the CL prize money we earned over the three years of the settlement period. Of that, €20m would be irrevocably held back and the other €40m conditionally withheld until we complied, at which point it would be released to us.
We definitely put the €20m through the accounts as an expense straight away so that suggests it was withheld from that season's CL revenue but I was under the impression we've accounted in full for subsequent CL revenues (although we may have put a provision in the balance sheet). If that's the case then there will be no impact on the bottom line but if we haven't (and I'll need to check the accounts against UEFA's distribution statements) then our profit figure this year will benefit to the tune of €40m (£33m).
Are the domestic FFP rules still a thing? I seem to remember the EPL introducing their own thing to suit arse,rags,spuds and dippers once it became clear we'd not be destroyed by uefa. Once again it didn't involve debt levels iirc - what a surprise!
Yeah it's still around, it's a bit of a non-entity though with the UEFA one already in effect, bar one rule where we can't increase the wage bill by more than a certain amount per season unless it's matched with commercial revenue growth (which doesn't include TV money - basically a safety mechanism to stop players and agents hoovering up all the extra money from the new TV deals).
BertTrautmann'sParachute
Well-Known Member
Thanks, mate.Just checked and as far as I can see the basis of the settlement was that €60m would be withheld from the CL prize money we earned over the three years of the settlement period. Of that, €20m would be irrevocably held back and the other €40m conditionally withheld until we complied, at which point it would be released to us.
We definitely put the €20m through the accounts as an expense straight away so that suggests it was withheld from that season's CL revenue but I was under the impression we've accounted in full for subsequent CL revenues (although we may have put a provision in the balance sheet). If that's the case then there will be no impact on the bottom line but if we haven't (and I'll need to check the accounts against UEFA's distribution statements) then our profit figure this year will benefit to the tune of €40m (£33m).
SilverFox2
Well-Known Member
We put the £16m mandatory part of the fine through the accounts when it was levied and paid. So there's no other impact on the bottom line.
Thanks PB.
The accounting treatment should be to recognise the income when it is earned , not when it is received. So the entry would be debit debtors in the balance sheet and credit income in the profit and loss. The directors then have to decide whether in their opinion, the money will be received or not.If they think it will be, it should be shown by way of notes to the Accounts. A note has no effect on the numbers but would mention the potential fine in what is called a contingent liability. If the Directors think it is not recoverable it would debit a fines account in the profit and loss and provide a credit the balance sheet to reduce debtors.
In this case the income would be declared in the year when the decision is made by EUFA to cancel the fine.
In this case the income would be declared in the year when the decision is made by EUFA to cancel the fine.
SilverFox2
Well-Known Member
The accounting treatment should be to recognise the income when it is earned , not when it is received. So the entry would be debit debtors in the balance sheet and credit income in the profit and loss. The directors then have to decide whether in their opinion, the money will be received or not.If they think it will be, it should be shown by way of notes to the Accounts. A note has no effect on the numbers but would mention the potential fine in what is called a contingent liability. If the Directors think it is not recoverable it would debit a fines account in the profit and loss and provide a credit the balance sheet to reduce debtors.
In this case the income would be declared in the year when the decision is made by EUFA to cancel the fine.
From what I remember did it not suit our FFP vulnerability to pay off the non returnable portion of the monies immediately, or am I confusing things historically ?