Wage bill coming down

[NottsRam77]

Someone posted something the other day which made me think there’s yet more light at the end of the tunnel.

am I right in thinking there’s another 8-10 players out of contract this summer including 

ANYA!!!!!, Martin, Huddlestone, Thorne? 
 

if that’s the case, just those 4 alone u must be looking at what? 100-120k a week off the wage bill

that would be a frightening amount to shake off and give cocu some serious wriggle room on the wage bill

whats even more shocking is that over the last couple of months only Martin has been involved in first team affairs and even he’s being squeezed out 

we haven’t half spunked some Money haven’t we... on the flip side if this is true and these guys are going end of the year that really does give cocu a fresh canvas 

[Dimmu]

Anya, Bennett, Davies, Fozzy, Hudds, Martin, and Thorne.

Plus Hamer and Clarke obviously.

[rammieib]

Also if the club put a residual value on these players, then circa £10 million loss on the accounts. So everything may seem rosy with not paying the £6-7 million in wages but there could well be a huge loss in there as well.

It's never as simple as it seems.

[RamNut]

So far the wages seem to have gone up every year to quite alarming levels.

Hopefully we see a significant decline in the next set of accounts. But we still need to lose another 5 or 6 big earners.

we are not very good at is making the hard choices between players,(e.g. Lowe v Malone; Marriott v Martin; bird v bielik)

it’s hard to justify any reserves being on >20k per week.

If the high earners lose their first team slot then we really need to get rid.  
 

[RoyMac5]

10 minutes ago, RamNut said:

If the high earners lose their first team slot then we really need to get rid.  

If you can shift Anya then let recruitment know the secret! 

[Jram]

9 minutes ago, rammieib said:

Also if the club put a residual value on these players, then circa £10 million loss on the accounts. So everything may seem rosy with not paying the £6-7 million in wages but there could well be a huge loss in there as well.

It's never as simple as it seems.

Yeah I think this was the problem with Blackman, butts and Johnson in the summer if I understood it correctly. It was great to get their wages off but the club had valued them as nearly 10 million In assets which offset a lot of FFP so they were a huge loss when leaving for free

given they got an extra year on their contract to protect their value , does anYone know if we actually got any money for them in the end?

[RamNut]

2 minutes ago, RoyMac5 said:

If you can shift Anya then let recruitment know the secret! 

The secret is to not buy them in the first place ?

right now, we should be looking for a new club for jozefzoon, or he will be the next anya. 

[BaaLocks]

38 minutes ago, NottsRam77 said:

whats even more shocking is that over the last couple of months only Martin has been involved in first team affairs and even he’s being squeezed out 

Martin out of contract? Brace yourself - incoming of 250 pages of 'I'd definitely give him a one year deal' against 'His best years are way gone'. Brexit has got nothing on what 2020 holds for this forum.

[NottsRam77]

22 minutes ago, rammieib said:

Also if the club put a residual value on these players, then circa £10 million loss on the accounts. So everything may seem rosy with not paying the £6-7 million in wages but there could well be a huge loss in there as well.

It's never as simple as it seems.

Bugger 

[Dimmu]

Just now, BaaLocks said:

Martin out of contract? Brace yourself - incoming of 250 pages of 'I'd definitely give him a one year deal' against 'His best years are way gone'. Brexit has got nothing on what 2020 holds for this forum.

Maybe a time for a thread about Martin? It's been a while since the last one.

[GB SPORTS]

41 minutes ago, Dimmu said:

Anya, Bennett, Davies, Fozzy, Hudds, Martin, and Thorne.

Plus Hamer and Clarke obviously.

Add to that we have lost Carson and Keogh off the list that is a good proportion.

Sure Cocu will replace with players on less wages and/or use the kids.

 

The future's bright the future's Oranje.

[GB SPORTS]

3 minutes ago, NottsRam77 said:

Bugger 

There is probably no residual left by season end, we could do with moving some on )loan/small fee this window to mitigate though.

[Tyler Durden]

28 minutes ago, rammieib said:

Also if the club put a residual value on these players, then circa £10 million loss on the accounts. So everything may seem rosy with not paying the £6-7 million in wages but there could well be a huge loss in there as well.

It's never as simple as it seems.

This. Beat me too it, those players will carry intrinsic valuations - Huddlestone and Martin especially are seen as first team picks by a lot on here when they are fit. So where's the money coming from to replace them or are you assuming that all 4 aren't replaced?

[RamNut]

2 minutes ago, Tyler Durden said:

This. Beat me too it, those players will carry intrinsic valuations - Huddlestone and Martin especially are seen as first team picks by a lot on here when they are fit. So where's the money coming from to replace them or are you assuming that all 4 aren't replaced?

 hopefully Martin has a residual value of nil since he cost nowt. I did some number crunching once based on the published figures in the accounts which led me to assume that the residual values are circa 50% of the initial transfer fee. Could be wrong. But if correct huddz would have a residual value of @£1.25m. We are going to have to face the pain of those losses sooner or later. 
 

the squad is still too big and unbalanced. Not all of the ‘outs’ do need replacing. 

[Rev]

The residual values assigned to each asset should be fair and reasonable, legally speaking.

How you arrive at such a figure on a footballer, god knows?

Worth bearing in mind that even free transfers such as Martin would have some valuation, as agents fees relating to the player form part of the asset cost.

 

 

[NottsRam77]

1 hour ago, Tyler Durden said:

This. Beat me too it, those players will carry intrinsic valuations - Huddlestone and Martin especially are seen as first team picks by a lot on here when they are fit. So where's the money coming from to replace them or are you assuming that all 4 aren't replaced?

I love Huddlestone 

we know he has his faults not least mobility but I go to football to watch players like him 

his passing at times is a pure art 

but that said

has he not been replaced already when bielik was signed ?

id be pretty convinced it was with Huddlestone moving on end of season in mind 

add to that shinnie and the emergence of Bird

ill wager hudds is as good as gone if he’s out of contract end of season 

unless he’s offered a short term package to protect our financial interests 

[Mckram]

1 hour ago, Jram said:

Yeah I think this was the problem with Blackman, butts and Johnson in the summer if I understood it correctly. It was great to get their wages off but the club had valued them as nearly 10 million In assets which offset a lot of FFP so they were a huge loss when leaving for free

given they got an extra year on their contract to protect their value , does anYone know if we actually got any money for them in the end?

I don’t think we got any money for them. The extra year was more to push the loss in to the next financial year as far as I’m aware. 

[NottsRam77]

Did I read correctly that if a player signs a new contract (a renewal) it takes their residual value to zero or something because there was no transfer fee involved for this new contract 

or they can be re valued to what u want to speak 

or have I totally made that up lol 

 

[RamNut]

13 minutes ago, reverendo de duivel said:

The residual values assigned to each asset should be fair and reasonable, legally speaking.

How you arrive at such a figure on a footballer, god knows?

Worth bearing in mind that even free transfers such as Martin would have some valuation, as agents fees relating to the player form part of the asset cost.

Apparently most clubs treat the residual value as nil so that the transfer fee is written off each year over the term of the contract. E.g. a £2m fee, 4 year contract, = 500k per annum in amortisation.

Derby do it differently. The annual amortisation figures are lower than would be expected, which means we are setting a residual value and taking a hit on the residual value at the end of the term, if the player hasn’t been sold. I assumed that we would have a set percentage and when I crunched the numbers, it came out  @50%.

[RamNut]

7 minutes ago, NottsRam77 said:

Did I read correctly that if a player signs a new contract (a renewal) it takes their residual value to zero or something because there was no transfer fee involved for this new contract 

or they can be re valued to what u want to speak 

or have I totally made that up lol 

 

I’m not an accountant but I assume it would depend on how much had already been accounted for in annual amortisation. So if a £2m player had half the fee written off in annual amortisation amounts, such that they had a residual value of say £1m at the end of term - if they then signed a further contract - the remaining £1m would then be written off over the further term of that new contact. The values can also be changed subject to a one off depreciation cost I believe.