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[Albion] £30m offer for Levi Colwill rejected











CHAPPERS

DISCO SPENG
Jul 5, 2003
45,119
Short answer: Amortisation

If they spend, say, £300m on players in July... firstly it won't be in the calculations for the season just gone (where they are trying to comply with FFP by selling before the end of June). That gives them the rest of this window from 1st July, the Jan window and then the start of the window (to eo June) to make sales to balance the FFP books for the 23/24 season.
Secondly, the cost of the players bought will be spread over the length of their contracts through amortisation. Assuming the player(s) signed for £300m are given 5 year contracts, only £60m of that cost will go into the 23/24 accounts (the rest being spread at £60m per season for the rest of the contract(s).)
The benefit of selling players brought through the academy is that the whole fee counts as profit towards FFP (the remaining 'balance' of amortised player purchases will come off the sale price for bought players before any 'profit' is booked), so selling Mason Mount for £60m effectively covers a £300m outlay (assuming 5 year contracts) in the short term (for FFP purposes at least).

But like buying stuff on the never-never, it will all catch up with them soon. The year-on-year, residual cost of previously amortised contracts means they are always going to be starting from a big negative (e.g. £10m per year for 8 years on Mudryk alone) on transfer costs. They are F***ED if they keep missing out on CL revenue (shame).
Lovely explanation.
 






MJsGhost

Oooh Matron, I'm an
NSC Patron
Jun 26, 2009
5,046
East
Lovely explanation.
Thank you. I should probably credit the source...

It's that podcast that's mostly a vehicle to shoehorn 70s and 80s song titles and lyrics into the gaps between adverts hawking products to find new staff, or shave your (never mind the) bo||ocks.

Occasionally, some interesting chat about football finance breaks out and there's a DULLARD who knows his stuff explaining it at a level even the Palace supporting host (and I) can understand.

For those who don't know what I'm on about:

Kieran Maguire/EP, he's one of our own :thumbsup:
 


ConfusedGloryHunter

He/him/his/that muppet
NSC Patron
Jul 6, 2011
2,427
Thank you. I should probably credit the source...

It's that podcast that's mostly a vehicle to shoehorn 70s and 80s song titles and lyrics into the gaps between adverts hawking products to find new staff, or shave your (never mind the) bo||ocks.

Occasionally, some interesting chat about football finance breaks out and there's a DULLARD who knows his stuff explaining it at a level even the Palace supporting host (and I) can understand.

For those who don't know what I'm on about:

Kieran Maguire/EP, he's one of our own :thumbsup:

Well I never thought I'd see the day when doxxing happened on NSC...
 


CHAPPERS

DISCO SPENG
Jul 5, 2003
45,119
Thank you. I should probably credit the source...

It's that podcast that's mostly a vehicle to shoehorn 70s and 80s song titles and lyrics into the gaps between adverts hawking products to find new staff, or shave your (never mind the) bo||ocks.

Occasionally, some interesting chat about football finance breaks out and there's a DULLARD who knows his stuff explaining it at a level even the Palace supporting host (and I) can understand.

For those who don't know what I'm on about:

Kieran Maguire/EP, he's one of our own :thumbsup:

Yeah I thought it might be (y)

Still, nicely done.
 






ConfusedGloryHunter

He/him/his/that muppet
NSC Patron
Jul 6, 2011
2,427


MJsGhost

Oooh Matron, I'm an
NSC Patron
Jun 26, 2009
5,046
East
Don't worry, I was doing one of my trademark crap jokes. I think EP's identity has been a fairly open secret on here for years.
Now he's an international media superstar he might b a little more twitchy :)
 




ConfusedGloryHunter

He/him/his/that muppet
NSC Patron
Jul 6, 2011
2,427
Now he's an international media superstar he might b a little more twitchy :)
I believe he posts links to his stuff himself from time to time. I can't be completely sure though as I usually nod off as soon as the videos start playing, no idea why.
 




Wardy's twin

Well-known member
Oct 21, 2014
8,940
That’s easily explained. It’s because Tony knows how to run a football club. Unlike Chelsea we don’t go out looking for shiny glittery baubles to appease the egos of fans who take some kind of tacky reflected glory in the price of players. If we can buy Levi at a decent price because Chelsea can’t afford not to sell, then all good. If he is not for sale then we will buy someone else because Tony (unlike Todd) isn’t desperate.
It was more the fact that the Chelsea fan was inferring we were mid table club that made me laugh.
 




Weststander

Well-known member
NSC Patron
Aug 25, 2011
69,913
Withdean area
Short answer: Amortisation

If they spend, say, £300m on players in July... firstly it won't be in the calculations for the season just gone (where they are trying to comply with FFP by selling before the end of June). That gives them the rest of this window from 1st July, the Jan window and then the start of the window (to eo June) to make sales to balance the FFP books for the 23/24 season.
Secondly, the cost of the players bought will be spread over the length of their contracts through amortisation. Assuming the player(s) signed for £300m are given 5 year contracts, only £60m of that cost will go into the 23/24 accounts (the rest being spread at £60m per season for the rest of the contract(s).)
The benefit of selling players brought through the academy is that the whole fee counts as profit towards FFP (the remaining 'balance' of amortised player purchases will come off the sale price for bought players before any 'profit' is booked), so selling Mason Mount for £60m effectively covers a £300m outlay (assuming 5 year contracts) in the short term (for FFP purposes at least).

But like buying stuff on the never-never, it will all catch up with them soon. The year-on-year, residual cost of previously amortised contracts means they are always going to be starting from a big negative (e.g. £10m per year for 8 years on Mudryk alone) on transfer costs. They are F***ED if they keep missing out on CL revenue (shame).

With one key other aspect, going against Chelsea and Everton for example.

If they buy 8 players for £600m and within a year or two deem 4 of them mistakes. When they move them on, the fee cost less tiny amount of amortisation so far = net book value, is an immediate hit to losses for FFP. Only reduced to an extent by the sale proceeds.

This is a particular problem for a club that have made a series of expensive gaffs,

They must move on players from the 25 man squad, to sign new managers choices.

The expensive gaff transfer fee mistakes inevitably go hand in hand with overly generous wages too.

Moving them on is messy and punishing on FFP losses.
 




GT49er

Well-known member
NSC Patron
Feb 1, 2009
49,451
Gloucester
Wow! He looks like Caicedo Mk II in that clip.
So what? Alirezah Jahanbakhsh looks like Messi MkII in this clip -



Clue: he wasn't Messi MkII - and neither should we be looking at Rangers players to strengthen our defence. Our not-quite-good-enough-for-us defenders strengthen Rangers' defence, not the other way round!
 






Hugo Rune

Well-known member
NSC Patron
Feb 23, 2012
23,835
Brighton
Their FFP period for 22/23 ends June 30th. So many vultures circling Chelsea now, expectant of scraps.

But perhaps it’s going to be be that cunning Seagull that swoops down and nicks their chips in the end (in addition to a healthy big fat shit-in-the-face one would hope).
 


HastingsSeagull

Well-known member
Jan 13, 2010
9,451
BGC Manila
Chelsea this summer will sell some of their ‘good contracts’ or opportunities in the case of players they developed themselves. If they end up buying dross, and it turning into them needing to shift bad situations next year they could be 10x worse off than now.
 


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