Simmo’s left foot Posted January 5, 2020 Share Posted January 5, 2020 Of course this accounting works the other way too, when we sign a decent player with no fee (Like Shinnie) we get an asset that sits on our books for several years? However for me the big thing is we can get the wage bill down to less than the turnover of the club, so the club will not be losing money every week, all year. It all becomes sustainable then. Link to comment Share on other sites More sharing options...
Andicis Posted January 5, 2020 Share Posted January 5, 2020 Didn't we give some of our players ''new contracts'' last summer, but allow them to leave for free anywhere they wanted to avoid the issue of taking huge losses on residual value? Link to comment Share on other sites More sharing options...
RoyMac5 Posted January 5, 2020 Share Posted January 5, 2020 9 minutes ago, Simmo’s left foot said: However for me the big thing is we can get the wage bill down to less than the turnover of the club, so the club will not be losing money every week, all year. It all becomes sustainable then. You are Nigel Clough and I claim my £5! ? Link to comment Share on other sites More sharing options...
RamNut Posted January 5, 2020 Share Posted January 5, 2020 5 minutes ago, Andicis said: Didn't we give some of our players ''new contracts'' last summer, but allow them to leave for free anywhere they wanted to avoid the issue of taking huge losses on residual value? I think this chap got it right...... 47 minutes ago, Mckram said: 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. Link to comment Share on other sites More sharing options...
Simmo’s left foot Posted January 5, 2020 Share Posted January 5, 2020 8 minutes ago, RoyMac5 said: You are Nigel Clough and I claim my £5! ? Haha, all football clubs have got to live within their means! At some point the bubble will burst.. Link to comment Share on other sites More sharing options...
Carnero Posted January 5, 2020 Share Posted January 5, 2020 Looking forward to the meltdown when Anya appears on the summer retained list , having extended his contract mid-season on "reduced terms". Link to comment Share on other sites More sharing options...
deano180 Posted January 5, 2020 Share Posted January 5, 2020 Some of our kids will be offered new deals and surely there residual value will increase easing the burden on players leaving for free??? Link to comment Share on other sites More sharing options...
Ghost of Clough Posted January 5, 2020 Share Posted January 5, 2020 1 hour ago, NottsRam77 said: 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 I wouldn’t be surprised if Hudd signs an extension to be third choice (behind Bielik and Bird) and to achieve Mel’s 50% quota. Same goes for Bennett. They’re certainly decent squad options, so as long as the wages are low enough, then why not? Link to comment Share on other sites More sharing options...
Rev Posted January 5, 2020 Share Posted January 5, 2020 41 minutes ago, RamNut said: 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%. I know all that, it was much easier when it was fixed amortization. This time last year, I sat down and tried to work out what the maximum valuation of the players out of contract in the summer could be at their highest I didn't post it, it was quite boring tbh, but to use Bryson as an example. 450k plus agents fees(X2), based on his extension. Add on 45k agents fees based on his fee, 18k for his original contract, based on a 3yr 5k a week deal, and 500k based on his 5 year extension at 20k a week. That makes total asset value of £950,000 give or take at the start of his extension. I'd say going into his final season, a value somewhere near his maximum would still be fair and reasonable. Compare him to Butterfield. £6m and agents fees, around £600k for the transfer, and another £300k on his wages, giving a total of £6.9m in all book value at start. I'd say to value him more than Bryson going into the final season would be generous, but using your figures he may have been down as a £3m+ asset. No wonder they pushed the loss into a different year! It's why we'll probably end up selling Bogle for buttons, just to cover the loss. Link to comment Share on other sites More sharing options...
Rev Posted January 5, 2020 Share Posted January 5, 2020 17 minutes ago, deano180 said: Some of our kids will be offered new deals and surely there residual value will increase easing the burden on players leaving for free??? They can only be valued at a maximum of what we've paid their agents for extending their contracts. Say Bird signs a new 4 yr contract on 250k a year, his agents fee would be around £100k, which we have to pay. Therefore he's cost us £100k, and can't be valued higher. That's why selling academy products and free transfers is far better for P&S reasons than bought in players, because you don't have cover the initial transfer fee outlay. Link to comment Share on other sites More sharing options...
Ghost of Clough Posted January 5, 2020 Share Posted January 5, 2020 I seem to recall someone saying we used the stadium sale to wipe out most of the book value of overvalued players (Butterfield, Blackman, Johnson, etc...) Link to comment Share on other sites More sharing options...
DCFC27 Posted January 5, 2020 Share Posted January 5, 2020 2 hours 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? Both came in for small fees Link to comment Share on other sites More sharing options...
jono Posted January 5, 2020 Share Posted January 5, 2020 I struggle to see how an agents fee becomes an asset rather than a cost ? But I’m not an accountant and don’t live in the isle of man Link to comment Share on other sites More sharing options...
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