September 24, 2019, 02:37:20 AM

Author Topic: Bolasie  (Read 13794 times)

0 Members and 1 Guest are viewing this topic.

June 14, 2018, 03:38:15 AM
Read 13794 times
Offline

GLewis

NSNO Subscriber
Is there a "creative accounting" benefit from sending players like that out on loan? As in selling them when their book values has reduced due to amortisation, so the trading loss isn't as great?

I can't be arsed working out the numbers.

Yeah there would be from a FFP point if view, providing you got the same fee in 1 or 2 years time.

In the real world the cash figure is still the most important bit.


June 14, 2018, 04:16:01 AM
Reply #1
Offline

GLewis

NSNO Subscriber
Because that's the actual revenue/cash flow, which is presumably the be all and end all?

Does any profit on the book value get classed as revenue in addition to that? I'm assuming not?

Yeah revenue figure is the gross cash income amount.

Profit is that less the carrying value of the individual player.

So Klaassen now would be worth £20m carrying value (rough figures of £25m/5 year deal) so anything less than that (say 15m) would result in a loss on the trade.

Keeping him for 2 years and selling for 15m would see a further 10m depreciation (so carrying value of £10m) so we’d see a profIt of £5m.

Obviously there’d be wage cost impacts too.