The Official Tottenham Hotspur Thread [Vol 7]
Discussion
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
blindswelledrat said:
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Shame to see Lewis Holtby being sold on, i rather liked him & his infectious attitude.
Hope he does well for Hamburg.
Toby Alderweireld Seems to be the next target which i think will be an excellent signing, Apparently our Daniel is in Madrid trying to sign Alderweireld and a chap called Suarez, no not that one.
Hope he does well for Hamburg.
Toby Alderweireld Seems to be the next target which i think will be an excellent signing, Apparently our Daniel is in Madrid trying to sign Alderweireld and a chap called Suarez, no not that one.
Black can man said:
Shame to see Lewis Holtby being sold on, i rather liked him & his infectious attitude.
Hope he does well for Hamburg.
Toby Alderweireld Seems to be the next target which i think will be an excellent signing, Apparently our Daniel is in Madrid trying to sign Alderweireld and a chap called Suarez, no not that one.
Yep, I'd be very pleased with both of those (although not sure where the Suarez signing would leave the likes of Bentaleb and Mason?).Hope he does well for Hamburg.
Toby Alderweireld Seems to be the next target which i think will be an excellent signing, Apparently our Daniel is in Madrid trying to sign Alderweireld and a chap called Suarez, no not that one.
BrabusMog said:
blindswelledrat said:
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
If you bought someone for 20 mil on a 4 year contract after 2 years he is worth 10 mil on your books. You then sell him for 50 million, you therefore 'make' a 40 mil profit on the player which then filters through to your bottom line.
Found an article from Daniey Geey (Sports lawyer) who also uses The Swiss Ramble (Sports finances blogger) to explain a couple of deals.
http://www.danielgeey.com/football-amortisation-ch...
Edited by London424 on Thursday 2nd July 09:29
I think it's all smoke and mirrors, me. If only we had an accountant to explain it all eh. Oh well.
Transfer Accounting
With David Luiz moving to PSG, many have asked how PSG can afford the reported €40-50m fee with their FFP spending restrictions. As such, the basis of this blog is to shed light on how clubs account for the sale and purchase of players and why it is important for FFP compliance.
How Purchasing Clubs Account for their Spending
In sexy accounting speak “when a player is purchased, his cost is capitalised on the balance sheet and is written-down (amortised) over the length of his contract.” In laymen’s terms, transfer fees for accounting purposes are spread over the length of a players’ contract. If we take PSG’s purchase of Luiz as a recent example, €50m over a five year contract is amortised by a club in its accounts to the value of €10m per season.
Although PSG have agreed to spending restrictions due their FFP settlement agreement with UEFA, they are permitted to invest in their squad under the terms of the agreement. Of more concern to PSG will be their 14-15 wage freeze restriction. If Luiz is on large wages, they will need to reduce their wage bill. Reduction will be possible with out of contract or contracted players leaving the club.
A transfer occurring in the 2013-14 season (depending on PSG’s accounting year end) will have an impact on a club trying to break-even in subsequent seasons. As noted above, PSG will amortise Luiz’s transfer fee over the length of his contract. If we assume a 5 year contract, PSG will have four further €10m amortisation charges in their 14-15, 15-16, 16-17 and 17-18 accounts. All of those amortization costs will have FFP significance.
How Selling Clubs Account for their Income
The other important amortisation issue is the accounting procedure when a player is sold. On this topic I defer to the Swiss Ramble who uses the ex-Manchester City player Robinho as an example:
“[H]e was bought for £32.5 million in September 2008 on a four-year contract, so annual amortisation was £8.1 million. He was sold after two years, so cumulative amortisation was £16.2 million, leaving a value of £16.3m in the books. Sale price to Milan is reported as £18 million, so City will report a profit on sale of £1.7 million in the 2010/11 accounts. Therefore, City will show an annual profit improvement of £18.1 million after this deal: £8.3 million lower wages + £8.1 million lower amortisation + £1.7 million profit on sale.”
This demonstrates how clubs write-off the transfer value of a player over the life-time of their contract and also illuminates that because Robinho was worth £16.3m two years into his four year deal, Manchester City actually made an accounting profit on his transfer of £1.7m. Fans would see the sale of a player for £18m bought two years previously for £32.5m as bad business. The club in their accounts will class it as a £18.1m profit improvement.
Transfer Accounting
With David Luiz moving to PSG, many have asked how PSG can afford the reported €40-50m fee with their FFP spending restrictions. As such, the basis of this blog is to shed light on how clubs account for the sale and purchase of players and why it is important for FFP compliance.
How Purchasing Clubs Account for their Spending
In sexy accounting speak “when a player is purchased, his cost is capitalised on the balance sheet and is written-down (amortised) over the length of his contract.” In laymen’s terms, transfer fees for accounting purposes are spread over the length of a players’ contract. If we take PSG’s purchase of Luiz as a recent example, €50m over a five year contract is amortised by a club in its accounts to the value of €10m per season.
Although PSG have agreed to spending restrictions due their FFP settlement agreement with UEFA, they are permitted to invest in their squad under the terms of the agreement. Of more concern to PSG will be their 14-15 wage freeze restriction. If Luiz is on large wages, they will need to reduce their wage bill. Reduction will be possible with out of contract or contracted players leaving the club.
A transfer occurring in the 2013-14 season (depending on PSG’s accounting year end) will have an impact on a club trying to break-even in subsequent seasons. As noted above, PSG will amortise Luiz’s transfer fee over the length of his contract. If we assume a 5 year contract, PSG will have four further €10m amortisation charges in their 14-15, 15-16, 16-17 and 17-18 accounts. All of those amortization costs will have FFP significance.
How Selling Clubs Account for their Income
The other important amortisation issue is the accounting procedure when a player is sold. On this topic I defer to the Swiss Ramble who uses the ex-Manchester City player Robinho as an example:
“[H]e was bought for £32.5 million in September 2008 on a four-year contract, so annual amortisation was £8.1 million. He was sold after two years, so cumulative amortisation was £16.2 million, leaving a value of £16.3m in the books. Sale price to Milan is reported as £18 million, so City will report a profit on sale of £1.7 million in the 2010/11 accounts. Therefore, City will show an annual profit improvement of £18.1 million after this deal: £8.3 million lower wages + £8.1 million lower amortisation + £1.7 million profit on sale.”
This demonstrates how clubs write-off the transfer value of a player over the life-time of their contract and also illuminates that because Robinho was worth £16.3m two years into his four year deal, Manchester City actually made an accounting profit on his transfer of £1.7m. Fans would see the sale of a player for £18m bought two years previously for £32.5m as bad business. The club in their accounts will class it as a £18.1m profit improvement.
ascayman said:
Black can man said:
Toby Alderweireld Seems to be the next target which i think will be an excellent signing
Tremendous signing lets levy doesn't go all small time again and try and get him for a pittance and fail. BrabusMog said:
blindswelledrat said:
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
http://swissramble.blogspot.co.uk/search/label/Tot...
Warning he's a Gooner though! It is very,very good though if that is your thing.
Cheib said:
BrabusMog said:
blindswelledrat said:
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
http://swissramble.blogspot.co.uk/search/label/Tot...
Warning he's a Gooner though! It is very,very good though if that is your thing.
I do like the movie quote at the end.
Purgatory. I can go along with that.
Cheib said:
BrabusMog said:
blindswelledrat said:
London424 said:
He'd go on for 50 mil. Then depending on the length of his contract it gets reduced every year.
So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
Interesting and odd. Is this just standard practice? So if it went the other way and you bought him for 20, he became a superstar worth 50, he will still be only a £10m asset after 2 years even though his real value is 50?So a 50 mil player on a 5 year deal is 40 mil a year later.
It's why TECHNOPUG was joking on the previous page.
http://swissramble.blogspot.co.uk/search/label/Tot...
Warning he's a Gooner though! It is very,very good though if that is your thing.
m3sye said:
Now I like to take the piss out of Spuds as much as the next man Sye, but...Article said:
Spurs were not interested in Konoplyanka this summer and several English newspapers also reported the player could be destined for Stoke.
I'm a bit kerfuffled.hornetrider said:
m3sye said:
Now I like to take the piss out of Spuds as much as the next man Sye, but...Article said:
Spurs were not interested in Konoplyanka this summer and several English newspapers also reported the player could be destined for Stoke.
I'm a bit kerfuffled.
Another player we now can't be linked to. If Poch & Mitchell wanted him, he would already be in our squad.
Good to see you posting on the footie forum HR ?
Black can man said:
Pretty much agree with all of the above, rumours are that Juve are in for Lamela & we are close to signing that Dnipro winger Yevhen Konoplyanka .
We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
Hornet We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
m3sye said:
Black can man said:
Pretty much agree with all of the above, rumours are that Juve are in for Lamela & we are close to signing that Dnipro winger Yevhen Konoplyanka .
We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
Hornet We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
m3sye said:
Black can man said:
Pretty much agree with all of the above, rumours are that Juve are in for Lamela & we are close to signing that Dnipro winger Yevhen Konoplyanka .
We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
Hornet We definitely need some pace in the side. i'll be happy with the two we have got already with Konoplyanka & a new striker
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