Tribunal Update

[Rev]

34 minutes ago, Sparkle said:

I expect no further action bar asking us to change the way we value our players 

Maybe I'm misunderstanding this, but the way we amortise players values over the length of their contract seems to me to a far more accurate value than straight line decreases, if done correctly.

Maybe the EFL will instruct all clubs to adopt our model in future.

[Spanish]

16 minutes ago, reverendo de duivel said:

Maybe I'm misunderstanding this, but the way we amortise players values over the length of their contract seems to me to a far more accurate value than straight line decreases, if done correctly.

Maybe the EFL will instruct all clubs to adopt our model in future.

Depends whether you are carrying brad at 6m all the way through because to properly value him would breach PS. not saying that is the case for the record.  I dislike our method which can lump significant cost into the final year,it is not prudent imo

[SaffyRam]

21 minutes ago, Spanish said:

Depends whether you are carrying brad at 6m all the way through because to properly value him would breach PS. not saying that is the case for the record.  I dislike our method which can lump significant cost into the final year,it is not prudent imo

The auditors have clearly been ok with it though, if that method has been in the accounts for a few years.

[Spanish]

Just now, Saffy van der Ram said:

The auditors have clearly been ok with it though, if that method has been in the accounts for a few years.

Didn’t say it was illegal just think it is risky

[Rev]

18 minutes ago, Spanish said:

Depends whether you are carrying brad at 6m all the way through because to properly value him would breach PS. not saying that is the case for the record.  I dislike our method which can lump significant cost into the final year,it is not prudent imo

That's one of the problems though isn't it?

People assume it's some sort of wheeze for P&S reasons, yet applied correctly with realistic values applied, it's actually a more honest way of doing things.

Like yourself, I wouldn't accuse the club of not valuing assets correctly, little point to kicking the can down the road now a rolling average over 3 seasons is the measurement.

 

[G STAR RAM]

1 hour ago, reverendo de duivel said:

Maybe I'm misunderstanding this, but the way we amortise players values over the length of their contract seems to me to a far more accurate value than straight line decreases, if done correctly.

Maybe the EFL will instruct all clubs to adopt our model in future.

If there is a model applied to it, which can be displayed to be reasonable with reference to things done before I think it is fair to use it.

If we are back leading all of the amortisation it is clearly being done for other motives.

The fact that we supposedly extended a few contracts to avoid taking a big FFP hit would lead me to believe it is the latter.

[Rev]

25 minutes ago, G STAR RAM said:

If there is a model applied to it, which can be displayed to be reasonable with reference to things done before I think it is fair to use it.

If we are back leading all of the amortisation it is clearly being done for other motives.

The fact that we supposedly extended a few contracts to avoid taking a big FFP hit would lead me to believe it is the latter.

The assumption we extended contracts to avoid sanction would probably be a more cautious statement.

I know what you mean though.

 

[G STAR RAM]

17 minutes ago, reverendo de duivel said:

The assumption we extended contracts to avoid sanction would probably be a more cautious statement.

I know what you mean though.

I cant believe the auditors would let the club do it to be honest, but I've seen it mentioned by numerous sources.

[Ghost of Clough]

2 hours ago, reverendo de duivel said:

Maybe I'm misunderstanding this, but the way we amortise players values over the length of their contract seems to me to a far more accurate value than straight line decreases, if done correctly.

Maybe the EFL will instruct all clubs to adopt our model in future.

It sounds similar to how it used to be in the ‘good old days’. 

"The New Business of Football: Accountability and Finance in Football" by S Morrow (1999)...

Prior to the Bosman Ruling... (1996 accounting year ends). The most common policy was to capitalise only those players acquired on the transfer market as intangible assets on the balance sheet. The acquisition cost less an estimated residual value at the end of a player's contract was then amortised, either over the period of an individual player's contract, or over the period until the player attained the age of 33.

After the Bosman Ruling where clubs could only demand a transfer fee if sold during the duration of the contract, a number of clubs reverted to the traditional method of player expenditure/income going through the P/L account, the majority altered their amortisation method to write off the value over the contract, setting the residual value of zero at the end of the contract.

The residual value is basically an estimate of the value of the player at the end of his contract. In most cases the estimate was based on the application of a UEFA multiplier dependent on a player's age being applied to his earnings.

[RamNut]

they aren’t worth owt when the contract has expires so how can they have a residual value?
and do we have to declare how we er...worked it out. 

 

[G STAR RAM]

2 minutes ago, RamNut said:

they aren’t worth owt when the contract has expires so how can they have a residual value?
and do we have to declare how we er...worked it out. 
 

Guessing the residual value would be applied to when the contract enters it final year rather than when it ends.

[Comrade 86]

Still nothing from the EFL then? A cynic might think they're dragging things out as long as they can in order to scupper another transfer window for the club. They've waited a long time for their revenge, after all and we're clearly guilty until proven innocent.

[Will Hughes Hair]

Anybody else wondering if S Morrow first began work on his book, when he had some unexpected spare time after Tony Adams dropped him on his head?

[IslandExile]

6 hours ago, DcfcJG said:

News on the EFL charge is expected in the next week. 

Interesting first post.

[Rev]

1 hour ago, Ghost of Clough said:

It sounds similar to how it used to be in the ‘good old days’. 

"The New Business of Football: Accountability and Finance in Football" by S Morrow (1999)...

Prior to the Bosman Ruling... (1996 accounting year ends). The most common policy was to capitalise only those players acquired on the transfer market as intangible assets on the balance sheet. The acquisition cost less an estimated residual value at the end of a player's contract was then amortised, either over the period of an individual player's contract, or over the period until the player attained the age of 33.

After the Bosman Ruling where clubs could only demand a transfer fee if sold during the duration of the contract, a number of clubs reverted to the traditional method of player expenditure/income going through the P/L account, the majority altered their amortisation method to write off the value over the contract, setting the residual value of zero at the end of the contract.

The residual value is basically an estimate of the value of the player at the end of his contract. In most cases the estimate was based on the application of a UEFA multiplier dependent on a player's age being applied to his earnings.

 

1 hour ago, RamNut said:

they aren’t worth owt when the contract has expires so how can they have a residual value?
and do we have to declare how we er...worked it out. 

 

 

1 hour ago, G STAR RAM said:

Guessing the residual value would be applied to when the contract enters it final year rather than when it ends.

I think G Star is right here, players have been given a value entering their final contracted year.

The example Ghost of Clough gave is a historic one, pre Bosman, wouldn't apply now because in effect the club contract a players services over the length of the contract, rather than the individual themselves, to answer @RamNut's point, they indeed have no value once out of contract in most circumstances.

 

 

 

 

 

 

 

 

 

 

[RamNut]

7 hours ago, DcfcJG said:

News on the EFL charge is expected in the next week. 

Another 48 hours.

[MackworthRamIsGod]

10 hours ago, IslandExile said:

Interesting first post.

John Gregory on the wind up

[GboroRam]

10 hours ago, RamNut said:

Another 48 hours.

[lagavulinram]

EFL are just stringing it out. trying to make us sweat, the fans being punished again.

[ThePrisoner]

5 minutes ago, lagavulinram said:

EFL are just stringing it out. trying to make us sweat, the fans being punished again.

This is a bit of a stretch.