skybluecam
Well-Known Member
Inspired by a discussion in the other thread.
How much will we spend on transfer fees this summer? (7 Viewers)
- Thread starter skybluecam
- Start date
Ccfcisparks
Well-Known Member
Well what if we spend £85m what do I vote for
stupot07
Well-Known Member
Go £90m
HuckerbyDublinWhelan
Well-Known Member
Some serious re-construction needed, 70-80m net - agree with @Macca1987 we'll top up the spending with some sales.
SeaSeeEffCee
Well-Known Member
4 people expecting us to not bother next year so far
shmmeee
Well-Known Member
Just need to have Ivan Toney and David Reya knocking about already.
Speedie's Head
Well-Known Member
One of the big issues is the losses made over the last two season. The club will surely want to cover that at some point and if not now then when? I know we have players to sell if that becomes a necessity but most of the value is in the remaining length of the contracts and extending contracts affects cash flow.
I'm trying to temper expectations here, if we were to go down we'll want it to be in good financial health that's for sure not with huge losses and players wanting out.
I'm trying to temper expectations here, if we were to go down we'll want it to be in good financial health that's for sure not with huge losses and players wanting out.
& Noorgard & Mbuemo... I get your point.
Although IIRC, I don't think people accepted their squad as prem-ready other than Toney. If a few of our players stepped up in the way they did (Thomas, Grimes, Rudoni, EMC) & we get lucky with injuries we could stay up with less than people think
PUSB-We_are_going_up
Well-Known Member
I’ve guestimated £100m but a portion of that will be generated from player sales
skybluecam
Well-Known Member
£100m
Speedie's Head
Well-Known Member
When we sign players the spend is amortized over the length of the contract and appears as a loss on the accounts because we would no longer have the assets. So even if the cash flow is covered from income, the loss is still made eventually unless some or all of the players are sold on.
Sky_Blue_Dreamer
Well-Known Member
We need Doug to use his masterclass in deals. Bit harder for him now as before adding in PL promotion incentives when we'd been hovering around the play-offs is tempting to selling clubs as there's a decent chance of fruition. Europe/CL add-ons aren't going to be as attractive.
Biggest thing we need to deal with is wages. Definitely need to ensure players have relegation wage cuts in there, but they'll want something in return if they have other offers. Maybe big increases/bonuses if we stay up or get to Europe?
Biggest thing we need to deal with is wages. Definitely need to ensure players have relegation wage cuts in there, but they'll want something in return if they have other offers. Maybe big increases/bonuses if we stay up or get to Europe?
HuckerbyDublinWhelan
Well-Known Member
Think we can spend 80% of our revenue on transfers an wages, so if we earn 120m we can spend 96m
Hobo
Well-Known Member
So 96m transfers and wages isn’t great is it?
mrtrench
Well-Known Member
Not sure about the accounting there.
I would expect:
On purchase CR Bank acc. DR Player Assets. So no Profit and Loss impact: all balance sheet.
Then each year: CR Player Assets. DR P/L. So the Loss is only shown on the amortisation each year, which is hopefully mitigated from other income.
Unless... We only pay a proportion of the fee each year, which has been suggested as how the market works. In which case there would be a contingent asset account for the player full value but the P/L would be the same.
Any accountants here? Do you agree?
HuckerbyDublinWhelan
Well-Known Member
The transfers aren’t gonna be paid all at once are they. They’re amortised over the length of the contract. On top of that that’s just the TV money. We’ll probably end up earning around 160m.
a 20m player over 5 years is 4m for the purposes of the SCR - it’s how Chelsea were signing players and why they were offering 8 year contracts
Ccfcisparks
Well-Known Member
On the transfer fee the only thing hitting the P&L would be amortisation.
Wages would hit them too
Hobo
Well-Known Member
You cant pay transfer fees over 8 years now though. As I understand it they now have to be paid off over 5 years
HuckerbyDublinWhelan
Well-Known Member
You can pay them off over what you want - balance sheet is different to SCR - it’s only worked out over the contract length for SCR
Hobo
Well-Known Member
- Amortization: While transfer fees are often paid in instalments, UEFA rules restrict the amortization (accounting spread) of a player's cost to a maximum of five years, even if the contract is longer.
HuckerbyDublinWhelan
Well-Known Member
Yeah that’s the period it’s considered being paid - the spread, if doug wanted to pay 100m over 10 yrs he can. But the balance sheet would read 20m each of 5 years
Hobo
Well-Known Member
Wouldn’t that make the annual accounts a nonsense and fictitious?
HuckerbyDublinWhelan
Well-Known Member
No becuase the balance sheet that goes to companies house is slightly different to the figures considered for SCR.
in simple terms if we make 120m we could spend like 480m to keep us in line with SCR obviously that wouldn’t read well at companies house though.
Theres a few more intricacies to it, like owner funds being given to the club not being considered past a certain amount but would be on the balance sheet for companies house
It's a good job really isn't it or we're getting into slavery territory?
Speedie's Head
Well-Known Member
Don't forget the £50m or so of losses accrued in getting out of the championship. I really don't get the impression the club is about to drop anything close to £100m on summer transfers.
Sick Boy
Super Moderator
Of course we will do.
Trueskyblue20
Well-Known Member
If we spend anything less than £60m then I would worry about our chances of breaking the Derby points record. Bear in mind nearly half of that will likely be on a keeper and Oneyka (Rushworth 20m, Onyeka 7m?)
I would be hoping we could sign 2 or 3 £15m plus players, namely CB and ST as a minimum. I’m sure King and Austin will have a good plan but we are going to need proper investment if we really want to give it a go.
I would be hoping we could sign 2 or 3 £15m plus players, namely CB and ST as a minimum. I’m sure King and Austin will have a good plan but we are going to need proper investment if we really want to give it a go.
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