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Author Topic: FFP  (Read 510584 times)

Offline ADVILLAFAN

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Re: FFP
« Reply #3405 on: July 07, 2024, 10:29:33 PM »
Love that Arse fans were moaning that we'd inflated prices for our youngsters and then said they wanted 50M for Nketiah.

Online pauliewalnuts

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Re: FFP
« Reply #3406 on: July 08, 2024, 10:41:47 PM »
Just read this about our Juventus signings. Those fees seem very low, which will help our FFP situation.

A maximum of €28m spread over five years, absolute peanuts in terms of amortisation.


Quote
In confirming the departure of the two players, Juventus confirmed Iling-Junior’s transfer fee is €14m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”. The Serie A club also confirmed Barrenechea’s transfer fee is €8m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”.

Offline Percy McCarthy

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Re: FFP
« Reply #3407 on: July 08, 2024, 11:17:14 PM »
Just read this about our Juventus signings. Those fees seem very low, which will help our FFP situation.

A maximum of €28m spread over five years, absolute peanuts in terms of amortisation.


Quote
In confirming the departure of the two players, Juventus confirmed Iling-Junior’s transfer fee is €14m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”. The Serie A club also confirmed Barrenechea’s transfer fee is €8m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”.

As I suggested when people were complaining about the low fee for Dougie, the multiple swap allowed us & Juve to nominate player values to suit both sets of accounts.

By the way, bonuses don’t count as part of amortisation costs.

Offline purpletrousers

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  • GM : 25.04.2026
Re: FFP
« Reply #3408 on: July 08, 2024, 11:42:50 PM »
Just read this about our Juventus signings. Those fees seem very low, which will help our FFP situation.

A maximum of €28m spread over five years, absolute peanuts in terms of amortisation.


Quote
In confirming the departure of the two players, Juventus confirmed Iling-Junior’s transfer fee is €14m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”. The Serie A club also confirmed Barrenechea’s transfer fee is €8m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”.

As I suggested when people were complaining about the low fee for Dougie, the multiple swap allowed us & Juve to nominate player values to suit both sets of accounts.

By the way, bonuses don’t count as part of amortisation costs.

I'm trying to understand that about bonuses Percy. I'm presuming i'm misunderstanding, as that'd be vulnerable to much gaming the system, bonuses not needing to count across FFP, surely they could be set as very low/guaranteed bar?

Totally agree re: the DL transfer fees, add £20m on to his, £10m each on the Juve guys if it makes you feel better, we seem to be playing the sadly necessary financial game wisely.

Offline Percy McCarthy

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Re: FFP
« Reply #3409 on: July 09, 2024, 12:01:17 AM »
Just read this about our Juventus signings. Those fees seem very low, which will help our FFP situation.

A maximum of €28m spread over five years, absolute peanuts in terms of amortisation.


Quote
In confirming the departure of the two players, Juventus confirmed Iling-Junior’s transfer fee is €14m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”. The Serie A club also confirmed Barrenechea’s transfer fee is €8m “payable in four financial years, in addition to variable bonuses up to a maximum of €3m”.

As I suggested when people were complaining about the low fee for Dougie, the multiple swap allowed us & Juve to nominate player values to suit both sets of accounts.

By the way, bonuses don’t count as part of amortisation costs.

I'm trying to understand that about bonuses Percy. I'm presuming i'm misunderstanding, as that'd be vulnerable to much gaming the system, bonuses not needing to count across FFP, surely they could be set as very low/guaranteed bar?

Totally agree re: the DL transfer fees, add £20m on to his, £10m each on the Juve guys if it makes you feel better, we seem to be playing the sadly necessary financial game wisely.

I can’t claim to understand the thinking behind the bonus thing, unless it’s just there to help with clarity, but I’m guessing there.

All I know is the Reach business in sport writer (Dave Powell?) said it and he’s the most authoritative voice on FFP for me.

Offline Dogtanian

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Re: FFP
« Reply #3410 on: July 09, 2024, 12:58:35 AM »
The bonuses will go against FFP whether they’re amortised or not, because they’re still a cost to club.

It makes sense not to include a cost you may not pay on the asset value. But if you pay it, it goes in the accounts.

Offline Villatillidie25

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Re: FFP
« Reply #3411 on: July 09, 2024, 06:52:35 AM »
The bonuses will go against FFP whether they’re amortised or not, because they’re still a cost to club.

It makes sense not to include a cost you may not pay on the asset value. But if you pay it, it goes in the accounts.

Presumably they won’t be part of the amortisation calculation but, if they’re incurred, they’ll be expensed immediately to the P&L? So while it’s likely good in the short term, it’s not a complete dodge.

Offline lovejoy

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  • Location: Haywards Heath
Re: FFP
« Reply #3412 on: July 09, 2024, 07:38:04 AM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Offline Villatillidie25

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Re: FFP
« Reply #3413 on: July 09, 2024, 09:35:43 AM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Not really sure why I put the ? 🤣 (given I’m a qualified accountant) 🤣🤣

Offline Dogtanian

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Re: FFP
« Reply #3414 on: July 09, 2024, 10:20:21 AM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Not really sure why I put the ? 🤣 (given I’m a qualified accountant) 🤣🤣

Always cover your arse!  ;D

Online Brazilian Villain

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  • GM : 25.07.2026
Re: FFP
« Reply #3415 on: July 09, 2024, 10:31:54 AM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Not really sure why I put the ? 🤣 (given I’m a qualified accountant) 🤣🤣

The more accountancy chat the better, the muggles on here lap it up.

Offline Villatillidie25

  • Member
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Re: FFP
« Reply #3416 on: July 09, 2024, 11:31:40 AM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Not really sure why I put the ? 🤣 (given I’m a qualified accountant) 🤣🤣

The more accountancy chat the better, the muggles on here lap it up.

We could talk about double entries for a bit but that might take the “muggles” down a different path 🤣🤣

Offline Dogtanian

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Re: FFP
« Reply #3417 on: July 09, 2024, 12:03:40 PM »
Why did my ears just prick up?  :o

Online Brazilian Villain

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  • GM : 25.07.2026
Re: FFP
« Reply #3418 on: July 09, 2024, 12:06:07 PM »
That’s how accounting works, bonuses will be recognised in the period(s) they are earned, so usually as an in the year cost and not spread like a transfer fee. Hopefully this is offset by any extra prize money a club would win.

Not really sure why I put the ? 🤣 (given I’m a qualified accountant) 🤣🤣

The more accountancy chat the better, the muggles on here lap it up.

We could talk about double entries for a bit but that might take the “muggles” down a different path 🤣🤣

Quite right too, we must maintain our standards.

Offline paul_e

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Re: FFP
« Reply #3419 on: July 09, 2024, 12:12:29 PM »
The only thing I can see bonuses being used for (to 'play' with the rules) is knowing that you have a strong account year you could reduce the initial cost that will be amortised and add some simple bonuses that will be easily achieved in the first season allowing you to front-load the fee and get the bulk of the cost off the books sooner.

Imagine a £10m up-front but a further £10m after 15 and 25 appearances and something relating to a small number of goals or clean sheets. You could plan for something like a £50m package of which only £8m is still on the books by the next summer.

I can see that making sense if you signing an older player (with limited resale value) or if you were making signings like Bailey where you've just had a massive spike in income and you want to flatten out the impact of the 3 year cycle.

I wonder what the response to something like that would be from the Premier League, I guess it'd depend who did it.

 


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