In the Notes to the Accounts it says that signing on fees are charged to the P&L over the life of the contract - I would surmise that such monies are regarded as payroll, there is no charge/cost identified separately for signing on fees
We will have to wait until March to investigate that! He was sold in August 2017, so in the y/e 31 July 2018 Accounts which are due to be filed next March
I don’t see transfers fees being rolled up as wages in any way, surely they are trade assets costs,, or stock purchase costs if you will, not sure how these transfer fees are shown on the accounts.
A standard practice of accounting for players is to take the value of the contract and amortise it over the term. So a £15m transfer with a 3 yr contract will be accounted as £5m per year. Makes it ridiculous when you’re valuing a club as you may have found the next Ronaldo but it won’t be reflected in the valuation of a club. You could also end up having a glass legged player who never gets on the pitch but is still valued as per his contract.
Pulled this from WalesOnline, interesting comment from a local Accountant: "Judging by your ignorant post you are the most clueless of the lot (Dai). Some fans are business people themselves or in my case Accountants. I've looked at the club's accounts from the last financial year and done the various ratio analysis and take it from someone that is independent in their thinking that the club does not require the cost saving measures that have been implemented this summer along with the net cash inflow from transfers. In terms of gearing the club is not financed by debt. The issue that supporters have is all the misleading crap that was spouted about the shysters taking the club to the next level in terms of investment. The squad has had zero investment in the last two years. This has coincided with the decline of the team on the pitch culminating in the relegation last season. The success you talk about from many years ago was based on the fact that HJ and the previous directors had very little to lose. As soon as millions were placed in front of them they took the money and run without any consideration as to who they were selling their shares to. All they are left with now is to squeeze every single last penny of profit from the parachute payments at any cost". - Hawkim02 Bracket inserted by me!........................ Just goes to show what Fraudsters the Boardroom are, check out the Bold........
If glass legs you would have to recognise the loss in value. If the next Ronaldo you could do a revaluation but there would be a tax implication so probably never done. It seems that the Swans are doing something with the signing on fee for free transfers, and maybe some other players remuneration....or the non-playing average wage is ridiculous.
I cant stop laughing here with everyone thinking they know all about the clubs financial business.....Err I dont think so... The club accounts is way over anyone of us heads and we should not be concerned at all about it. The club has made significant changes and they have every right to do that. You can either agree with those changes or not but it dont matter which way we choose it wont make any difference on the clubs policy........I myself are loving the new change as i see it as a massive improvement with the way we are doing things, It wont happen over night but the club is heading in the right direction that we all want.....When it comes to money then let the professionals deal with that as it is none of our business unless they say we are about to go into administration and there is no sign of that anywhere and getting rid of the mercenaries on high wages is a brilliant first step in making us a great club....
Bit disingenuous that Dai. You don’t know what level of accountancy people have on here. They may work for PWC or Earnest Young’s. (I trust you have heard of them)
I trained (& qualified) with PwC - also worked for Ernst & Young before returning to PwC, then joined a subsidiary of a major PLC as FD. Stayed in industry for the rest of my career at (Divisional & Group) FD/CFO level. Was involved in top-level sport - on the Finance/Accounting side for 10 years, so have a little knowledge of things financial.....
Well if that’s the case let’s have some analysis from you, I’m not expecting forensic accounting examination, but are these accounts sound or what!!!.........
Neither can I, because it will have to cover a multitude of sins! By the way consider yourself appointed as the Swans not606 forensic accountant!,,.......
