Nah I'm done. I can't keep saying the same thing and not having it register. I've shot a tweet to the Price of Football because I want to see if there's an ep where they go over Championship FFP rules and explain it well because then I can just post that for anyone who wants to understand it and that's that.
I understand the nuts and bolts of it, just am sure it's currently a consideration, but don't know what part applies to us at the moment, or whether it's just the club being cautious they don't shaft themselves in future years.
Probably makes sense. Lot of stuff on here or in new owners thread would be better in one dedicated to keep an eye on finances. Pretty sure HITC Sevens has something coming up that is bound to generate discussion also.
I can see both your points to be fair. Think you 2 agree more then you perceive neither of you wants to admit it. It has been mentioned a lot more at this stage then I thought it would which is odd so their must be something there although I was of the viewpoint of Syd that it wouldn’t matter at this stage.
It would make more sense if they were just being diligent not to overcommit in future years. If the guaranteed element of the KLP fee goes on this years FFP balance sheet which is then offset against ammmortised fees for the incomings - we shouldn't be close to breech in the current year. I accept that. Unless it's something to do with that short term loan Toastie was on about the other day. But if so and there are expenditure issues then why are we still going for Nwakaeme and others if it puts us at risk of a breech? We can't count the KLP fee twice, we can't sell him again and there isn't a great saving or profit to be made by flogging existing players, except Greaves perhaps but they don't seem to be doing that. Not a saving or fee which will cover a Nwakaeme's contract for the next 2 years anyway. And if money was that tight, wouldn't we bail on the Traore deal as opposed to continue chasing big wage players from Super Lig? ?
No offence, lads, but can you shelve this FFP conversation or move it to another thread? It’s gone on for page after page now and it’s boring as ****.
Thankfully there's a bit on FFP in today's episode of Price of Football from about 12 mins: https://open.spotify.com/episode/6N2FP2NDKKLFfMYRte0cRZ?si=C86UctxVQC6yypXuLXFtvQ If OLM or whoever wants to move all FFP posts to a new thread this might be a good link to reference back to.
Syd your wrong. Receivables are only booked into the individual years accounts that they become due if the inbound transfer fee is payable over a number of years. It's called annual amortisation. You might record an asset value (players worth) on acquisition immediately within your balance sheet, to be potentially written down in financial terms over the term of the players contract, but your notion would completely undermine any cash flow modelling.
I think you're misunderstanding what I'm saying mate, it's not that the receivable is all booked in the year it is recognised, it's the income. Income is recorded when the service is performed or the goods are exchanged. When we sold Bowen in 2020 we would have booked his transfer fee as revenue received then and there, regardless of when the cash was received. The discussion was regarding FFP and the calculation of our profit/loss. For any such calculation, KLP's fee would be recognised as having been received within this year, as we have sold the player to Brentford. If a business sells someone a TV or any good on credit, they don't recognise revenue for that product for the x number of years it takes for that person to pay it off. They book the revenue when the product is sold, and then write off the receivable as the cash is received.
The £13 million only applies if the owner or someone else agrees to buy more equity in the club. Acun has to cover the losses with shares he buys or someone else buys. Agreeing to lend the company money to cover losses isn't permitted. If Acun is willing to buy £35 million worth of shares in City we can lose that amount over the next three years. If he doesn't buy or sell more shares our annual losses will have to be more modest. No wonder we're having meetings over ffp.
Unless it was due to be paid over in a period greater than 3 years, it would be irrelevant anyway, wouldn't it?. Any add-ons for Bowen would be additional income in the period it was triggered though I'd have though.
