Transfer Rumours January Transfer Thread

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Stockholm Tiger said:
No I understand that Syd. I just thought we'd 'overspent" on wages more than on fees. So if we reduced wages it was a good thing.
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Oh for sure, if we reduce wages it absolutely helps (in the above example you're reducing your expense by 3m a year if you sell a player on big wages) my point was just that the transfer fee hits each year just as much as the wages do, and could often have a bigger impact.
 
Amin Yapusi said:
Surely the transfer fee would have to go against FFP in exactly the way it’s structured. So if more of/the whole fee is paid up front that would all come out of that initial year?
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Nope. It's split evenly over the life of the contract. The cash flow of the payment has absolutely zero to do with it.

Unless by 'up front' you mean compared to add-ons, then yes, if it's say, a 3m deal with 2m of add-ons, then the add-ons hit in the year they're triggered.

But if it's about the installments - e.g. if we paid Villa 2m up front then 1m every year after that for Philogene, that's not how it hits our P&L. Cashflow =/= expense.

The Price of Football by Keiran Maguire regularly answers questions on amortisation where he explains this quite well. But accountants spread the cost of something over its useful life, so for instance if your work buys you a subscription to Microsoft Office that lasts 2 years and costs you $240, then $10 hits your company's P&L each month rather than the whole lot in the first month, as it wouldn't make sense to treat it as an expense in a single month since you're using it each month. In the same way, a player's registration (which is really what you're spreading over the life of the contract) is used every month (technically not in the off-season I suppose). It doesn't matter if the cash you pay on that all gets paid in the first month, in the 8th month or the 15th month, the cost of the registration is what it is (other than any add-ons).

To make it more confusing though, when you sell a player you get all that sale income in the year he's sold (again regardless of when the cash is received). I would assume we are still receiving cash for KLP from Brentford for instance, but we won't have any profit in our accounts for this year as a result of that.
 
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SydneyTiger14 said:
Clear as mud? <laugh>

It's why all these FFP investigations take as long as they do, it can be really complex to work out.

BUT..

Acun in the summer said we were close to the limit. That was before signing Philogene for 5m. So I have no idea how we're going to be making permanent offers for Giles and for this Turkish kid.
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If we don't go up this season we might still be playing Man City next season if Talk Sport are to believed/...
 
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Red top reader said:
Foxes vs the tractor boys is a crap game, Ipswich will fall like a stone mark my words. Leicester I don’t think are world beaters apart from a cpl of players and think we have a good chance of doing the double over them. Win the league and get stuffed by the tigers lol. In the prem they will get assaulted lol.
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Even if they lose tonight they have 16 points more than us in seventh,
 
SydneyTiger14 said:
I don't think they need to fall below us but if they slip into the play offs then it's suddenly a lot more winnable than Soton and Leeds both being in there.
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Absolutely.
I believed all along that the parachute teams will finish top three. They have the strongest teams and squads.
Going into the play offs, certainly wouldn’t want to have to beat two of them
 
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Nikica Jellyfish said:
Seri coming back
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Not sure he will be for a while now. Bloody Mozambique ( who’d have thought I’d be saying that in a City related thread) come back from two down. It would take some freakish results to not be in the four best third place finishers (out of 6 groups).
 
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SydneyTiger14 said:
Clear as mud? <laugh>

It's why all these FFP investigations take as long as they do, it can be really complex to work out.

BUT..

Acun in the summer said we were close to the limit. That was before signing Philogene for 5m. So I have no idea how we're going to be making permanent offers for Giles and for this Turkish kid.
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I don't think he should be taken too literally or too seriously. I can't remember his exact wording but I think it was pretty vague. I don't think it would be wise to admit you're literally on the cusp. I think he just meant to say that it's something we always have to consider.
 
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PLT said:
I don't think he should be taken too literally or too seriously. I can't remember his exact wording but I think it was pretty vague. I don't think it would be wise to admit you're literally on the cusp. I think he just meant to say that it's something we always have to consider.
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If that's the case then happy days, I just found it interesting wording to say we weren't going to be able to do much business then since then sign a player for 5m, (reportedly) offer ~3m for this Turkish kid, and also be in discussions for a 5m LB where 'all options are on the table' meaning we must be prepared to make a competitive offer to buy him.

As someone suggested we might be getting a decent amount of income from Ulker, plus Estupinan's departure will be helping ease the pressure a bit. I'm sure the crowds are helping too. But as conveyed, FFP is always a bit of a murky one to track and all we can do is trust Acun until we can't!
 
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