Financial Fair Play investigation

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Can someone smarter than me please explain how player amortisation works in 2023?

Long story short.

Its transfer price divided by the term of the contract. Thats then added as a cost to the annual P/L accounts. The amortisation and wages reflect the true cost of a player per year.
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For example:

Alex Iwobi

Wages per year: £4.6mill

Amortisation per year: £6.8 million. - (So over five years of his contract, his full transfer fee of £34 mill is accounted for.)

Total Cost per year is: £10.96 mill.

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We have an amortisation bill and a wage bill every year, thats how we make losses, both those costs are high.

They are generally lumped together and called the "wage bill".
 
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Can someone smarter than me please explain how player amortisation works in 2023?
Basically it works as the fee paid for a player is "amortized" over the length of the contract, usually 4-5. So for a 50m purchase, instead of 50m counting on the accounts that year, its counts 10m for each of the next 5 years under "Amortization of player registrations". You can see the line on the accounts every year
 

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Chelsea spending unbelievable amounts on players, two more french players then loaning them out to Strasbourg who they have just bought
How that gets through ffp and the premier league's profit and sustainability .
The amount of money at first team level and academy level the last 12 months is off the scale
 

Have to have sovereign-state backing now to really compete.

I'd exclude the organically high-wealth clubs from that hypothesis, but outside of that, it's unlikely even with a collection of high net-worth individuals coming together, and that's unlikely anyway, as individual investment is ego-driven for the most part.

If we got our act together and generated yearly profit with increased turnover and sponsorships, and the stadium doing well, the absolute apex of what we could achieve IMO is probably to replicate Spurs. As in being in and around the top six and playing regularly in Europe. That being said, their ceiling in that regard was higher than ours.

Top 8 and winning the Europa League is what I'd be aiming for, if we were a well-run club. A few seasons of being in Europe every year. I'd take a portion of Sevilla's level of success. Even then, that would come and go in a cycle. But if we can stay up, then a more positive cycle will come around, if we can take advantage. Brighton and Brentford will find their best players will always want to leave, and it only takes one mistake with a replacement signing, and/or key backroom people leaving that will trigger it.
 


United getting 90m a season from Adidas.

Meanwhile we out there getting paid 9m a season from Hummel.

This is why other clubs can spend and we cant.



Blame Elstone for confining us to KitBag and then who ever else has been signing off on our continued partnership with Fanatics.
 
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From an article in football 365. Net spend over the past 5 seasons. Only brighton and luton are below us. Erm......I am thick like so can someone explain the ffp,profit and loss stuff and why we are so hamstrung in regards of buying players etc. Ta.
 

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