FFP

[eamonn]

There was a thread on here years back speculating on who H&V posters might look like. For some reason, the best laugh for me was Olof's Beard reckoning that Mark Fletcher (H&V comic of the year 2005-2010) probably looked like Minty from Eastenders.

[LeeB]

There was a thread on here years back speculating on who H&V posters might look like. For some reason, the best laugh for me was Olof's Beard reckoning that Mark Fletcher (H&V comic of the year 2005-2010) probably looked like Minty from Eastenders.

Yeah but my guess at Sexual Ealing was closest to reality.

[Risso]

There was a thread on here years back speculating on who H&V posters might look like. For some reason, the best laugh for me was Olof's Beard reckoning that Mark Fletcher (H&V comic of the year 2005-2010) probably looked like Minty from Eastenders.

Yeah but my guess at Sexual Ealing was closest to reality.

Minty from Eastenders?

[LeeB]

There was a thread on here years back speculating on who H&V posters might look like. For some reason, the best laugh for me was Olof's Beard reckoning that Mark Fletcher (H&V comic of the year 2005-2010) probably looked like Minty from Eastenders.

Yeah but my guess at Sexual Ealing was closest to reality.

Minty from Eastenders?

Adrian Chile.

[Brazilian Villain]

Adrian Chiles.

I didn't know SE wore glasses.

[Risso]

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?

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.

Completely wrong I'm afraid. Grab any set of accounts you like and look at the notes which describe the accounting policies. Acquisition of intangible assets, ie the purchase of players' registrations, are recorded at cost and then amortised over the length of those contracts. The only thing that will ever materially affect the carrying value is the signing of a new contract which means that the remaining unamortised value is spread over the new, extended term.

"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." No, they don't do this, they're measured at cost as I've already said.

Firstly, there's absolutely no way this could work in reality.  Secondly, it's not the auditor's job to do this. If the company had a building that had been revalued, then usual practice would be for the company to get a firm of Chartered Surveyors to give a report saying the valuation was reasonable. Look at the wildly differing values of youth players that have been sold in recent years. Cole Palmer went for £40m after starting three Premier League games. Sure he was excellent last year, but at the point of sale, there was no guarantee he'd do what he did, or that he'd be any better than say, Nmecha who Man City sold for £11m.

"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."  There is no "model", it's a simple purchase of an asset with a defined method of recognising that, ie cost.

How in your world, would you deal with a sale to a Saudi club, offering massively over what would be a "normal" fee?

[Nev]

Jim Ratcliffe is a ******? Who knew?

[Percy McCarthy]

I’ve heard this bloke three times now and always been impressed.

https://m.youtube.com/watch?v=UrhqwmRkJJo&pp=ygUXY2xhcmV0IGFuZCBibHVlIHBvZGNhc3Q%3D

[ChicagoLion]

[…] and I think you are arguing with a Chartered Accountant.

That is as may be.

There you go ^^^^^^^

[Drummond]

Risso, did you have a stiffy on when you posted that? 😉

[Percy McCarthy]

Jawdis getting £35m for Elliott Anderson validates anything that the Villa have done sales-wise, except maybe £42m for Dougie.

[Rigadon]

Isn't the sale of football players like anything else, in that they're worth whatever some other club is willing to pay?

[OCD]

Isn't the sale of football players like anything else, in that they're worth whatever some other club is willing to pay?

That's my belief. It's a free market.

[The Man With A Stick]

Jawdis getting £35m for Elliott Anderson validates anything that the Villa have done sales-wise, except maybe £42m for Dougie.

£35m?  I'm not an avid watcher of games that don't feature us, but I don't even know who that is.

[Ger Regan]

I was surprised to see that he has 44 appearances for them.