[Albion] Kiernan Dewsbury-Hall **Singed for Chelsea 02/07/2024**

[MJsGhost]

If KDH goes to Chelsea, it will likely be paired with Gallagher leaving.

The way amortisation allows for clubs to pretend they've made a profit is silly. If they buy KDH for £40m and sell Gallagher for £40m (both on 4 year contracts lets say) it shouldn't be reported as a £30m profit in my opinion.

It all comes out in the wash eventually though, doesn't it?
You can't keep on doing it year after year, as you'll end up having to make, say, a £100m profit on player sales, just to cover the 10 amortised player fees that are £10m each p.a.
I reckon their thinking is that the rules will be changed before it all catches up with them. I really hope not, as I'd love to see them relegated by a huge points deduction

 

[Flounce]

We need a younger version of John McGinn.... it's that simple, a disrupter, a player who also pushes on and provides goals and assists.

That could be Baleba

 

[Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ]

That could be Baleba

Hmmnn, he looks to have a touch of the Bissoumas about him when it comes to shooting. Hope I'm wrong

 

[milk]

@milk might know for whom, as our resident St Pauli fan

New club isn't announced yet, all we know is that he ruled out playing against us so definitely not anyone in the Bundesliga.

Rumour is he was in talks with Columbus Crew but they ended up sending him a contract that was completely different from what they had agreed to verbally so he passed. Supposedly another MLS club got in touch with him now. All speculation as of now tho.

 

[GT49er]

Missed our opportunity in January, absolutely no chance now.

If the player did not want to come, there was no opportunity to be missed.

 

[Beanstalk]

It all comes out in the wash eventually though, doesn't it?
You can't keep on doing it year after year, as you'll end up having to make, say, a £100m profit on player sales, just to cover the 10 amortised player fees that are £10m each p.a.
I reckon their thinking is that the rules will be changed before it all catches up with them. I really hope not, as I'd love to see them relegated by a huge points deduction

Absolutely, but I don't think clubs think further than the short-termism approach that it encourages. The only answer they're left with is to sell off all of their academy products in "pure profit". If we ignore the shitshow that is Chelsea for a second, it's how City have been run with great success. Last season they should have ended up with around €7m profit, despite spending €155m across the season. If in theory they average a 5 year contract for each of those signings, their expenditure in the books will be only €31m but their income is still €162m. This then gives them an additional €131m to spend in addition to the €40m allowed loss the next summer - which is exactly what they did.

As @hans kraay fan club says, is that really what we want football to look like? Trading factories with the football as a side show.

 

[Shropshire Seagull]

I get amortisation, and why businesses do it. It makes sense in that world.

I don't think football clubs should be allowed to amortise player sales. It's not a true reflection of income and outgoings. It means that you can game the system pretty easily (look at Chelsea's 8 year contracts) and always spend more than you have. It's not the same as other businesses.

If you sell the asset (player) before it is fully depreciated (amortised) then in the (accounting) year of sale the profit & loss account will record a cost of the balance remaining - called NBV (Net Book Value).

So, e.g. a player bought for £40m on 4 year contract will be depreciated at £10m per year. If, after 2 years, said player is sold for £5m or £60m, on the costs side, £20m will still be the remaining balance of the value of the asset [40 - (2x10)]. So £20m will be shown as a cost expense in the asset ledger as the asset is no longer owned. What price you get for the sale appears in full in the sales ledger.

So for a sale of £5m will show an overall loss of £15m and on a sale of £60m will show a profit of £40m

At least I think that's how it works from my A-level accountancy memories of 1987.

 

[Hiheidi]

Absolutely, but I don't think clubs think further than the short-termism approach that it encourages. The only answer they're left with is to sell off all of their academy products in "pure profit". If we ignore the shitshow that is Chelsea for a second, it's how City have been run with great success.

That might explain this...

 

[Beanstalk]

If you sell the asset (player) before it is fully depreciated (amortised) then in the (accounting) year of sale the profit & loss account will record a cost of the balance remaining - called NBV (Net Book Value).

So, e.g. a player bought for £40m on 4 year contract will be depreciated at £10m per year. If, after 2 years, said player is sold for £5m or £60m, on the costs side, £20m will still be the remaining balance of the value of the asset [40 - (2x10)]. So £20m will be shown as a cost expense in the asset ledger as the asset is no longer owned. What price you get for the sale appears in full in the sales ledger.

So for a sale of £5m will show an overall loss of £15m and on a sale of £60m will show a profit of £40m

At least I think that's how it works from my A-level accountancy memories of 1987.

Oh I get how amortisation works (which your explainer is spot on).

I just think it's a really stupid way of looking at footballers as products instead of seeing them as employees. As others have said, if everything is able to be amortised in the accounts, you start to move into a doublespeak space of a club's accounts saying that their spend is really low when their actual outgoings, paid up front, are 5-8 times larger.

If a club were to structure a deal in yearly payments that reflected the contract length then sure, but for me, it's really stupid to have a trading market where every deal made is deemed 5 times smaller than the actual amount being paid.

 

[Hugo Rune]

9-1 at SkyBet to sign for us.

Seems like a litte bit of value there as the favourite (Chelsea) may not be able to sign players in June due to PSR. The same reason Leicester would only sell in June.

Cheeky quid or two? Naylor keeps banging the drum for him.

No value at all on SkyBet now….

Either some big bets have come in or there is some movement here. I suspect the later has happened, sadly.

 

[Flounce]

No value at all on SkyBet now….

View attachment 184240

Either some big bets have come in or there is some movement here. I suspect the later has happened, sadly.

Sadly?

 

[Machiavelli]

No value at all on SkyBet now….

View attachment 184240

Either some big bets have come in or there is some movement here. I suspect the later has happened, sadly.

If big bets have come in, there will be movement in the odds. With silly books like this, even small bets will move the odds.

 

[Lurchy]

No value at all on SkyBet now….

View attachment 184240

Either some big bets have come in or there is some movement here. I suspect the later has happened, sadly.

 

[Mancgull]

If Leicester need to sell, they’ll need to get on with it, with less than two weeks to the PSR deadline.
Chelsea may be interested if Gallagher leaves but it doesn’t seem as if he wants to.

 

[Hugo Rune]

Sadly?

Meant former not later!

 

[Hugo Rune]

If Leicester need to sell, they’ll need to get on with it, with less than two weeks to the PSR deadline.
Chelsea may be interested if Gallagher leaves but it doesn’t seem as if he wants to.

Not during the Euros, especially!

 

[BrickTamland]

Any twitter rumours? No longer on there as it’s a cesspit, but missing out on the summer rumour mill!

 

[GT49er]

If Leicester need to sell, they’ll need to get on with it, with less than two weeks to the PSR deadline.
Chelsea may be interested if Gallagher leaves but it doesn’t seem as if he wants to.

If Dewsbury-Hall doesn't want to leave either, he won't (or he might just not want to come to us (wages)).

 

[Johnny RoastBeef]

Any twitter rumours? No longer on there as it’s a cesspit, but missing out on the summer rumour mill!

One or two,

Kevin Mier, 23, GK, Cruz Azul

Kevin Mantilla, 21, CB, Talleres

Juanlu Sánchez, 20, RB, Sevilla

Malick Yalcouye 18, CM, IFK Göteborg

Emile Smith Rowe, 23, AM, Arsenal

Matias Soule 21, RW, Juventus

Chilohem Onuoha, 19, MF/AM/LW, RB Leipzig

Crysencio Summerville 22, LW/RW, Leeds

Agustin Roberto, 18, CF, Riverplate

 

[maltaseagull]

It would be great to see us sign a left back, a winger and a DM plus bring another defender from the u21s.But probably be yet another window of disappointment.