Originally Posted by
CCTV
The accounting practice generates profits from the manner that sales are banked immediately and purchases are amortised.
In reality we pay and get money up front.
By focusing on the differnece between cash and accounting profits it seems as though he is delegitimising the accounting profit whilst retaining the amortised costs which are generated by the same accounting procedure.
The reason i believe it was brought in for FFP was to create a profit for ffp, by banking sales immediately and amortising purchases over time.
This would allow clubs to create a time lag between the reality of their spending and the generated player sales. The time lag gives a cushion. (Iirc)
It benefits clubs ability to spend and be ffp compliant. Last i read our break even point was very high for our allowed spending under ffp.
I can use net spend as a proxy for the costs of transfer dealings. I can also use the difference between the 5 year periods totals for purchases as a proxy for agent fees associated with signings.
Under Klopp we have net spent 123 million less than from the 11/12 season to the 15/16 season.
As things stand the total money spent on players was 12.4 million pound greater in the 5 years prior to Klopp 5 seasons.
(59.87+63.54+52.29+136.29
+113.85−71.91−156.49
−163.98−9.36−11.7)
If wages are a percentage of turnover and agent fees are a percentage of wages and not transfer fees, then the agents fees would be relatively stable as has the wage bill been.
What details did SR provide on agent fees ?
How is the PA constant and falling ?
It would seem the pa cost per player over their contract is constant. Like with mane say 35/5 7 mill a year.
But the overall cost to the club would be continually changing with players traded or not each season.
For example this yea5 well have to amortise Tsimikas contract over 5 years say 2.4 million added but we shift Bobby off as he hes here 5 years.
So in effect our pa cost is down this year, no ?
Stop talking "irish"
This is an English only site 😉
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