Transfer Rumours Transfer Rumours thread

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astro said:
Ibe £14.5m profit
Sinclair £4m profit
Smith £3m profit
Canos £2.5m profit

Benteke £5.5m loss assuming no add-ons
Allen £2m loss
Skrtel £1m loss

At least £15.5m profit
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That's not how profit on player transactions is actually calculated.

How it works is that say you buy a player for £20m on a 4 year deal, his asset value is on the balance sheet at £20m year 1.

In the year 1 profit and loss account, his value is amortized by 1/4 of his asset value, as he's on a 4 year contract, so you take a cost of £5m against him.

So year 2 he sits on the balance sheet at £15m and so on and so forth.

So Allen for example who signed in 2012 - assuming he originally signed on a 4 year deal - will have stood on your books this summer at £0. So the trading profit on him that'll show in the current years accounts will be £13m.

This is how clubs stay within FFP, as if you say spend £100m in one window, and all the players bought were on 4 year deals, then the cost that'll hit your P&L in that year is only £25m. So in Liverpools example you'd only have to sell a Joe Allen and a Jordan Ibe to more than cover the cost and show better than breakeven.
 
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Jigsawklopp said:
'No less than £30m for Hart'
Latest transfer gossip
Posted
Manchester City are refusing to let England goalkeeper Joe Hart leave on loan and want more than £30m for the 29-year-old.
Head over to the gossip column for plenty more theatrically whispered intrigue.
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How can they ask for £30m for someone who isn't even playing for them FFS
 
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astro said:
How can they ask for £30m for someone who isn't even playing for them FFS
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They're trying to play hard ball, but I doubt there'll be any takers at £30m+ and as the days tick down they'll become more flexible in their approach imo.

He's apparently said he thinks it's too short a time to make such an important decision about his future, and therefore wants a season on loan somewhere.

I'll be surprised if that's not how it pans out either.
 
Tobes said:
That's not how profit on player transactions is actually calculated.

How it works is that say you buy a player for £20m on a 4 year deal, his asset value is on the balance sheet at £20m year 1.

In the year 1 profit and loss account, his value is amortized by 1/4 of his asset value, as he's on a 4 year contract, so you take a cost of £5m against him.

So year 2 he sits on the balance sheet at £15m and so on and so forth.

So Allen for example who signed in 2012 - assuming he originally signed on a 4 year deal - will have stood on your books this summer at £0. So the trading profit on him that'll show in the current years accounts will be £13m.

This is how clubs stay within FFP, as if you say spend £100m in one window, and all the players bought were on 4 year deals, then the cost that'll hit your P&L in that year is only £25m. So in Liverpools example you'd only have to sell a Joe Allen and a Jordan Ibe to more than cover the cost and show better than breakeven.
Click to expand...

Skrtel was on our books for -£12m
 
No one in their right mind would pay 30m for Hart..
Agree, he'll most likely go out on loan and then maybe sold for around 10-15m next..
He's still young and he's still decent, most likely one of the best 5-8 goalies in the league.
 
Cameron Brannagan’s proposed loan move to Wigan Athletic has fallen through. [HASHTAG]#lfc[/HASHTAG] (James Pearce)

Wigan have backed out after having second thoughts about #LFC's demand Brannagan plays in 75% of their matches this season. (James Pearce)
 
Tobes said:
That's not how profit on player transactions is actually calculated.

How it works is that say you buy a player for £20m on a 4 year deal, his asset value is on the balance sheet at £20m year 1.

In the year 1 profit and loss account, his value is amortized by 1/4 of his asset value, as he's on a 4 year contract, so you take a cost of £5m against him.

So year 2 he sits on the balance sheet at £15m and so on and so forth.

So Allen for example who signed in 2012 - assuming he originally signed on a 4 year deal - will have stood on your books this summer at £0. So the trading profit on him that'll show in the current years accounts will be £13m.

This is how clubs stay within FFP, as if you say spend £100m in one window, and all the players bought were on 4 year deals, then the cost that'll hit your P&L in that year is only £25m. So in Liverpools example you'd only have to sell a Joe Allen and a Jordan Ibe to more than cover the cost and show better than breakeven.
Click to expand...

The most sensible post I have ever seen from you in this thread!
 
Jimmy Squarefoot said:
Read this earlier - not sure if fully true but interesting -

This summer we've recouped £80m without selling a single first 11 player.
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I only just realised this too. How amazing is it to finally be getting decent money for our players. I'm used to seeing us getting completely ripped off and cutting our losses all the time. Also when was the last time we managed to sell a few youngsters off at a profit?

Really good business for us this year.
 
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Lil_Jatt said:
I only just realised this too. How amazing is it to finally be getting decent money for our players. I'm used to seeing us getting completely ripped off and cutting our losses all the time. Also when was the last time we managed to sell a few youngsters off at a profit?

Really good business for us this year.
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We'll no doubt get a few more pennies to add to the coffers before the deadline, the likes of Alberto, Lucas, Badontelly, Wisdom and Markovic are likely to be sold too, that lot should bring in close to another 20+ Million (we're gonna take a bath on Markovic).
 
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Tobes said:
They're trying to play hard ball, but I doubt there'll be any takers at £30m+ and as the days tick down they'll become more flexible in their approach imo.

He's apparently said he thinks it's too short a time to make such an important decision about his future, and therefore wants a season on loan somewhere.

I'll be surprised if that's not how it pans out either.
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Thats how they calculate profit/loss in accounts which is just a paper exercise to satisfy the authorities
that ain't real life mate you should know that from your own business <laugh>
 
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Tobes said:
That's not how profit on player transactions is actually calculated.

How it works is that say you buy a player for £20m on a 4 year deal, his asset value is on the balance sheet at £20m year 1.

In the year 1 profit and loss account, his value is amortized by 1/4 of his asset value, as he's on a 4 year contract, so you take a cost of £5m against him.

So year 2 he sits on the balance sheet at £15m and so on and so forth.

So Allen for example who signed in 2012 - assuming he originally signed on a 4 year deal - will have stood on your books this summer at £0. So the trading profit on him that'll show in the current years accounts will be £13m.

This is how clubs stay within FFP, as if you say spend £100m in one window, and all the players bought were on 4 year deals, then the cost that'll hit your P&L in that year is only £25m. So in Liverpools example you'd only have to sell a Joe Allen and a Jordan Ibe to more than cover the cost and show better than breakeven.
Click to expand...

And if that £20m player gets down to one year left on his contract (so worth £5m on the books) before signing a new 4yr contact, that remaining £5m is split over the "new" four years.

Basically, Skrtel was worth about 50p in our accounts ;)
 
Solid_Air 2 said:
Thats how they calculate profit/loss in accounts which is just a paper exercise to satisfy the authorities
that ain't real life mate you should know that from your own business <laugh>
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They will want to sell based on exactly the point I made in my earlier post.

They've spent £150m this summer and Hart will owe them nothing
 
Tobes said:
They will want to sell based on exactly the point I made in my earlier post.

They've spent £150m this summer and Hart will owe them nothing
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oh agreed not that City ever seemremotely interested in "value"
i was just commenting on the players being treated in accounts in the same way you would show depreciation on a tractor :laugh:
 
Can anyone remember what was said when FSG discussed financing the new stand? We normally would have a £30 net spend but this have been virtually doubled with increased TV money pouring in. This would suggest that, without monies being used to finance the stadium improvement, we'd still have a war chest of £50-£70m. However, it could be that all or a large chunk will be used to pay the stadium costs down. Could explain why we are not splashing the cash quite as freely as others....
 
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