Lot of talk in here about payment structures for any Gordon fee, any new players and their relevance to accounting and P&S.
Timing of payments is irrelevant. If we sell Gordon who has no book value, the £40m goes straight to this year. Even if Chelsea only pay £20m up front or whatever. Any add ins will definitely not be accounted for until achieved. (Simplifying a bit, but you always account for “likely” bad news, but can only account for “definite” good news. So Chelsea may have to account for Gordon’s add ins when it’s reasonable to assume he’s going to hit them. We will only account for them when he defo hits them).
For players we buy, trying to negotiate small up front payments to help with P&S is not a thing. Buy someone for £50m on a 5 year contract, £10mill goes into each of the 5 years. Plus salary of course.
The only impact payment terms affects is cash flow, which is not “profit”. If we had no cash and could not borrow any more, then yes, getting massive up front payments on Gordon does help. As does small up front payments on hidden gems like Che Adams.
It’s is entirely the media that causes the confusion. Every single article linking us with Cornet said we were getting rejected because we were only offering small up front payments due to our P&S situation. Totally wrong, but was repeated across all major papers, BBC etc. We must be trying to limit cash leaving the club, which is understandable after Covid and Mosh losing his pocket money etc. Every business wants debts paid early but wants to pay suppliers as late as possible. That doesn’t affect your profit, you just have more cash for investment opportunities, unforeseen expenditure etc etc etc etc.