Jim Radcliffe of Man U summarizing why the rules need to favour the top 6 clubs https://x.com/caseysean51/status/1806980899591840060?s=46
[…] and I think you are arguing with a Chartered Accountant.
Radcliffe is still aiming to win the 'Premiership'
Quote from: eye digress on June 28, 2024, 08:04:50 PMQuote from: Risso on June 28, 2024, 04:20:02 PMAll an audit would show is the price paid for a player, and that that figure is paid. It wouldn't be an auditors job to conclude whether the price was paid was fair or not. How would somebody from PwC conclude whether Iroegbunam was worth £1m or £9m?Not sure I agree. The auditors would be required to gain an understanding of how assets (financial, tangible or intangible) on the books are measured by management. They would do this by reference to models containing historical market data along with other inputs. They would also inspect the audit trail of any sale or purchase transactions during the period. If they suspect that transactions occurred at unreasonably inflated prices, they would be expected to at least draw the attention of users of the financial statements to that conclusion in their report.For example, if we paid £10m for Dobbin but the auditors decided his value was one tenth of that because management's models were flawed, they would need to flag the assumptions used and the impact on the accounts in the event they were wrong.All of this is moot, however, for several reasons.First, it's hard to imagine that the auditors were not sounded out by management for any potential objections beforehand.Second, the fees are not a million miles away from others in the recent past (Chuck is always the good example).Third, there is I believe an argument to say that FFP has changed the market and pushed up the price of young players anyway. There are, after all, willing buyers and we all agree that youth products are "gold" in this new system, i.e., relatively more valuable than amortisable players.Lastly, there is a caveat. The ultimate arbitration lies with the PL, which is not held to accounting standards, of course. But could the PL reasonably, legally, object to valuations considered acceptable under accounting standards? That would be explosive indeed.That really is not the job of an Auditor and I think you are arguing with a Chartered Accountant.
Quote from: Risso on June 28, 2024, 04:20:02 PMAll an audit would show is the price paid for a player, and that that figure is paid. It wouldn't be an auditors job to conclude whether the price was paid was fair or not. How would somebody from PwC conclude whether Iroegbunam was worth £1m or £9m?Not sure I agree. The auditors would be required to gain an understanding of how assets (financial, tangible or intangible) on the books are measured by management. They would do this by reference to models containing historical market data along with other inputs. They would also inspect the audit trail of any sale or purchase transactions during the period. If they suspect that transactions occurred at unreasonably inflated prices, they would be expected to at least draw the attention of users of the financial statements to that conclusion in their report.For example, if we paid £10m for Dobbin but the auditors decided his value was one tenth of that because management's models were flawed, they would need to flag the assumptions used and the impact on the accounts in the event they were wrong.All of this is moot, however, for several reasons.First, it's hard to imagine that the auditors were not sounded out by management for any potential objections beforehand.Second, the fees are not a million miles away from others in the recent past (Chuck is always the good example).Third, there is I believe an argument to say that FFP has changed the market and pushed up the price of young players anyway. There are, after all, willing buyers and we all agree that youth products are "gold" in this new system, i.e., relatively more valuable than amortisable players.Lastly, there is a caveat. The ultimate arbitration lies with the PL, which is not held to accounting standards, of course. But could the PL reasonably, legally, object to valuations considered acceptable under accounting standards? That would be explosive indeed.
All an audit would show is the price paid for a player, and that that figure is paid. It wouldn't be an auditors job to conclude whether the price was paid was fair or not. How would somebody from PwC conclude whether Iroegbunam was worth £1m or £9m?
Newcastle value Minteh (yeah, who???) at £33m. He was purchased just 12 months' ago for £6.5m and has played no Premier League football.Hmmm. This valuation job ain't easy, is it?!!
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Topic: FFP (Read 488235 times)
