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Official: Will Hughes joins Watford


silhillian

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30 minutes ago, ramblur said:

I've a feeling I could just have said that the full fee is represented in the calculation of profit in the year the transaction took place,and that the structure of the cash payments has no relevance whatsoever. If you have any interest in it,the club's accounts are downloadable free from Companies House,using the beta service - you'll see some of the types of transactions I've mentioned,but they'll be global, rather than individual,and you'll never see an asset disposal account. 

That may have been simpler all round yes :)

But thanks for all the effort - I as said before - I find it interesting 

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8 minutes ago, RadioactiveWaste said:

You'll get to see pictures of Chris Martin as well tomorrow. That'll help.

Brilliant lol.

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32 minutes ago, ramblur said:

Ok,I'll invent a transaction and list every transaction,hoping it won't confuse you further! 

We originally bought player X for an all in price of £4m,and sold him to club Y for £6m,payable in 3 equal instalments of £2m/annum. The accumulated amortisation of the player was £3m at time of sale.

The player's reg would feature as part of intangible assets on the balance sheet,and consist of original cost (debit entry) and accumulated amortisation (credit entry),the difference of the 2 will be the net book value of the player.The profit/loss on the sale will be calculated within something called an 'asset disposal account',and certain values will be transferred into it as follows (double entry book keeping means that for every debit,there's an equal credit) :-

Cr players' regs in intangible assets with £4m and dr ADA with same amount,similarly dr IA with £3m (amortisation) and cr ADA with same.At this point,the player's reg will have been cleared from IA, and the ADA will reflect the net book value. The next step is to credit the full transfer fee of the player (£6m) to the ADA,with the corresponding dr entry going to the debtor account 'club Y'. ADA will now have a net cr value of £5m (the profit on disposal of player's reg) -at the year end this will be transferred to the P/L a/c (dr ADA £5m, cr P/L £5m).

Now let's look at the cash side of it. The first instalment of £2m is dr cash £2m, cr club Y £2m,meaning that club Y is now shown as owing £4m,the value of future instalments owed. This will be reflected in the balance sheet under current assets/debtors -'Players' registration fees receivable', with £2m being shown up to 12 months,and £2m 1 year+. The first instalment will be reflected in the cash flow statement under 'Proceeds of sale of intangible assets'. Some may think of their own bank statements and wonder why their cash deposits are shown as credits,yet I've shown the club's cash receipt as a debit.The answer is that the bank statement reflects the position of how they see you as a result of various net transactions -a creditor (if you're lucky).

The following year,when the 2nd instalment comes in, it's dr cash £2m,cr club Y £2m,with the transaction reflected in the cash flow statement.The debtor on the balance sheet becomes just 'up to 1 year', and in year 3, the same transactions mean that the debtor club Y disappears,as does the entry on the balance sheet.None of these transactions have any impact on profits.

I've a feeling I could just have said that the full fee is represented in the calculation of profit in the year the transaction took place,and that the structure of the cash payments has no relevance whatsoever. If you have any interest in it,the club's accounts are downloadable free from Companies House,using the beta service - you'll see some of the types of transactions I've mentioned,but they'll be global, rather than individual,and you'll never see an asset disposal account. 

 

I really quite like all these statistics and trying to work out how the club is really doing financially, but I've got to admit I got to the second paragraph and felt so lost I gave up. So, are we skint or is the sale of Will just a means of being able to move freely in the transfer market? ?

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32 minutes ago, richinspain said:

I really quite like all these statistics and trying to work out how the club is really doing financially, but I've got to admit I got to the second paragraph and felt so lost I gave up. So, are we skint or is the sale of Will just a means of being able to move freely in the transfer market? ?

Doubt we're skint,and my own view is that it gives room to work and still stay within FFP. You might have noticed that Gary often refers to FFP when talking transfers.Nothing particularly new in this,as Pearson had to sell before buying. Even Nigel in his last (part) year sold about twice as much as he brought in,but that had nowt to do with FFP.

Sorry you got flummoxed by a great wall of text.For those who want to follow it,I suggest you all draw something called 'T' accounts.Simply get a piece of paper and draw large Ts for each of cash/players' regs/club Y/asset disposals/Profit and Loss and title (above the T) each of these with one of the aforementioned. Next put 'Dr' on the L/H side, and 'Cr' on the R/H side of each T,at the top. Then simply transfer each transaction I mentioned,one by one, to either the L or R of the T's upright,and you'll see it all unfold.

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2 minutes ago, ramblur said:

Doubt we're skint,and my own view is that it gives room to work and still stay within FFP. You might have noticed that Gary often refers to FFP when talking transfers.

Sorry you got flummoxed by a great wall of text.For those who want to follow it,I suggest you all draw something called 'T' accounts.Simply get a piece of paper and draw large Ts for each of cash/players' regs/club Y/asset disposals/Profit and Loss and title (above the T) each of these with one of the aforementioned. Next put 'Dr' on the L/H side, and 'Cr' on the R/H side of each T,at the top. Then simply transfer each transaction I mentioned,one by one, to either the L or R of the T's upright,and you'll see it all unfold.

Clear as mud mate ???

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52 minutes ago, PodgeyRam said:

We'll get over it. I was upset he's leaving (and I still am really), but the club will survive without him. 

Anyhow, now you know how a lot of people felt when Martin left last year!

We shunt even be talking about Will Hughes now.

 

 

Its too soon.

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1 minute ago, cheron85 said:

Awwwww come on - It's less funny if I have to explain the joke to you :(

Have I missed something? I've refused to post in this thread until it was confirmed and I'd started to accept he'd gone. 

He's started really well as well, good lad!

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2 minutes ago, blackNwhites said:

Have I missed something? I've refused to post in this thread until it was confirmed and I'd started to accept he'd gone. 

He's started really well as well, good lad!

The joke was that you were celebrating Hughes being in the starting line up - And I was pretending not to know who he is since he abandoned us - In the thread about him - It's funny because it's blatantly obvious who

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1 hour ago, RadioactiveWaste said:

You'll get to see pictures of Chris Martin as well tomorrow. That'll help.

So what your technically saying, is that it's Christmas Eve?

 

(although surely he will get a few days extra off with international commitments? I'm sure in recent seasons internationals have had a few extra days off?)

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1 minute ago, McLovin said:

Been very poor defensively in the under 21 game, Germany are killing it down their right hand side, Hughes hasn't provided any protection to the left back Chilwell and looks sluggish. Looks decent when he has the ball though.

True enough, offensively he has looked decent but some of the other England players don't even think about passing the ball or making the runs unlike the pesky Germans

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