[Football] The ticking Profit and Sustainability (FFP) timebomb...

[southstandandy]

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Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to sell due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.

 

[dazzer6666]

Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to see due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.

eh ? We would pay for players in exactly the same way so your instalment point is irrelevant Don’t confuse cashflow with P&L. The profit announcement doesn’t even include the Caicedo sale anyway

 

[drew]

Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to sell due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.

Not saying we are going to splurge the cash but just as we receive in instalments then likely we pay in instalments so makes no difference.

 

[Zeus]

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Wonder if the £122m profit is after TB has has some repayment?

 

[Weststander]

Wonder if the £122m profit is after TB has has some repayment?

It’s not connected in the accounts.

The loan repayment is purely a balance sheet transaction.

 

[dazzer6666]

It’s not connected in the accounts.

The loan repayment is purely a balance sheet transaction.

Not really…….the profitability allows it to happen so wouldn’t say it’s not connected. It’s like a dividend.

 

[Weststander]

Not really…….the profitability allows it to happen so wouldn’t say it’s not connected. It’s like a dividend.

It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.

 

[Driver8]

It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.

Loan capital repayments wouldn’t effect the P&L. Whilst you are reducing the cash balance you are also reducing debt so it cancels out.

Edit, sorry I think that’s what you we’re saying in your earlier post.

 

[nwgull]

This thread has gone a bit dull discussing accountancy practices relating to cash and liabilities. I just want to know which striker we’re going to spunk this 120m on.

 

[Weststander]

This thread has gone a bit dull discussing accountancy practices relating to cash and liabilities. I just want to know which striker we’re going to spunk this 120m on.

A defensive midfielder please.

 

[Mancgull]

Not really…….the profitability allows it to happen so wouldn’t say it’s not connected. It’s like a dividend.

Wouldn’t it be a repayment of a directors loan? ( I’m no accountant but isn’t this more tax efficient than a dividend)
Edit, beaten to it by other comments.

 

[dazzer6666]

It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.

yes, but without the surplus the repayment wouldn’t have been paid

 

[Weststander]

yes, but without the surplus the repayment wouldn’t have been paid

I know, but the NSC’er was asking specifically about the P&L account. Did the £122.8m come before or after TB’s loan repayment?

Before. Capital transactions are accounted for on the balance sheet, except in example exceptional circumstances.

 

[dazzer6666]

I know, but the NSC’er was asking specifically about the P&L account. Did the £122.8m come before or after TB’s loan repayment?

Before. Capital transactions are accounted for on the balance sheet, except in example exceptional circumstances.

 

[nwgull]

A defensive midfielder please.

Sorry, but this is a football fans' forum and you know the rule: Any issue on the playing side of the club will be solved by the Chairman getting the cheque book out and buying a new striker.

 

[Nobby Cybergoat]

Sorry, but this is a football fans' forum and you know the rule: Any issue on the playing side of the club will be solved by the Chairman getting the cheque book out and buying a new striker.

OK, we'll have one of those as well!

 

[US Seagull]

David Squires on … Nottingham Forest and Everton playing the waiting game

Our resident cartoonist on a nervous time for the two Premier League clubs with the looming threat of relegation

www.theguardian.com

 

[Weststander]

The murky world of PL finances and arrangements in 2024.

https://www.theguardian.com/footbal...et=GB&region=UK&campaignlabel=Media AB Direct

 

[Badger]

The murky world of PL finances and arrangements in 2024.

https://www.theguardian.com/football/2024/mar/29/two-fifths-of-premier-league-clubs-yet-to-file-as-accounts-deadline-looms?mid=415156441&rid=6645861&cid=DM698571&market=GB&region=UK&campaignlabel=Media AB Direct

"Stefan Borson, a football finance expert, said: ..."

There's more than one dullard?

 

[Joey Jo Jo Jr. Shabadoo]

"Stefan Borson, a football finance expert, said: ..."

There's more than one dullard?

There can be only one.