FFP

[Toronto Villa]

The saltiness of other supporters is bizarre and delightful. I can’t work out if they are more upset with us for working within the rules than those circumventing them, or mad at their own teams for doing fuck all so far as we improve overall.

[Dave P]

Amortisation isn't always 5 years.

Correct. Amortisation is the length of the contract but 5 years max.

[Percy McCarthy]

Amortisation isn't always 5 years.

No, sorry. Length of the contract up to a maximum of five years. Like, Tim’s will be three.

[Drummond]

Amortisation was as long as the contract until the vote this season which capped it at 5 years. That cap, however, doesn't start until 1st July.

[Dave P]

Amortisation was as long as the contract until the vote this season which capped it at 5 years. That cap, however, doesn't start until 1st July.

So if we sign Maatsen this week on a 6 year contract, then it will be divided by the 6 years?  Aston Loophole FC strikes again.

[ADVILLAFAN]

Yes, can spread over 6 years before ot changes to a maximum of 5 years from 1st July.

[Somniloquism]

Anyone know how we work for European FFP? Isn't it different to Prem league ones, eg 70% instead of 80% turnover etc. I though they had the fixed amortisation rules in place before the Prem as well.

[algy]

Right, trying to keep track of this, so let's go again for current state.

£58m needed for compliance by 30th June.

Doug has gone for €50m accumulative value with swapsies valued at €22m.

I've not seen the length of the deals, so 6 years now while we can would make sense before that closes. I'll assume 5 years, so we load up £3.7m.

We have Dobbin now in, again I'll assume 5 years for a righter scenario. I've seen £3m banded about, but I'll assume £9m in case it's a like for like valuation; that's another £1.8m.

These 3 incoming players push us to needing £63.5m. Now for deductions; £42m (rounded down based on the current exchange rate of 0.85) for Luiz, £9m for Tim, leaves us with £12.5m to find.

If Kellyman goes for £19m in the next week, then we're clear with a £6.5m profit. This gives us room to sign Maatsen this side of 30th June, with his £37m split over 6 years.

We've also sold Sanson to Nice - can't remember the transfer fee, was it £4.5m or something like that?

EDIT: Transfermarkt reckons €4m

[Ger Regan]

Sanson possibly a loss overall, though, given what we paid for him (even allowing for amortisation)?

[Drummond]

Amortisation was as long as the contract until the vote this season which capped it at 5 years. That cap, however, doesn't start until 1st July.

So if we sign Maatsen this week on a 6 year contract, then it will be divided by the 6 years?  Aston Loophole FC strikes again.

Yep, that's the one, except it's not a loophole it's the rules.

The rules are what they are, exploiting them as we are is good work.

[ozzjim]

Can anyone put it succinctly as to where we need to be next summer? Ie punting the issue now, how bad is it going to get this time next season?

[Percy McCarthy]

Can anyone put it succinctly as to where we need to be next summer? Ie punting the issue now, how bad is it going to get this time next season?

Personally, I think there’s nothing to worry about. How bad is it now do you think? I can quite easily get behind selling the odd pure profit asset and academy graduate to continue the overall improvement of the squad.

The three key aspects are increasing revenue, an abundance of  saleable assets and good recruitment. I’m confident in the former two and only time will tell on the latter.

As long as those three things are in place, the squad will continue to improve. Look at that miraculously efficient building of the midfield. We have marvelled at its assembly - SJM, Tielemans, Kamara, Ramsey and Luiz for £17.5m. We’ve now added Rogers, Barkley and Enzo, and lost Dougie, but we’re actually in the black in terms of net spend, giving us plenty financial scope within the rules to improve further.

[Risso]

Amortisation was as long as the contract until the vote this season which capped it at 5 years. That cap, however, doesn't start until 1st July.

Amortisation will still be over 6 years in the accounts, because UEFA and the Premier League aren't in charge of accounting standards and rules. What will happen is an adjustment to the PSR calculation that the club have to submit.

[London Villan]

Can anyone put it succinctly as to where we need to be next summer? Ie punting the issue now, how bad is it going to get this time next season?

The massive increase in turnover/profit will help. Turnover is going to grow by the best part of £100m next year.

[Percy McCarthy]

Amortisation was as long as the contract until the vote this season which capped it at 5 years. That cap, however, doesn't start until 1st July.

Amortisation will still be over 6 years in the accounts, because UEFA and the Premier League aren't in charge of accounting standards and rules. What will happen is an adjustment to the PSR calculation that the club have to submit.

Cheers Riss.