Confirmed Signing Iliman Ndiaye

[toffee66]

So I'm correct in saying that only 3 mil will gon on this year's PSR? Ignoring wages, just fee and assuming it is a 5 year deal as per reports.

Which was my original point to @ToffeeTim

Amortisation is spread evenly over the contract length up to a maximum of five years for PSR so if he signed for £15m today the amortisation in 23/24 would likely be ignored as immaterial (c. £40k) and the fee would be amortised at £3m pa from 24/25 to 28/29 on a five year deal so…yes

 

[Furey1878]

The writer is taking liberties. The amount paid has nothing to do with anything. It can be paid up front, over 2 years, 5 years, 15 years...doesn't matter in terms of amortization and PSR.

The proper way for him to write it is:

In contrast, the fee is expensed - using an accounting practice called amortisation - over the length of the contract.

Okay mate, in your interpretation of the information, if we sign this kid for 15 mil today, how much goes on the 23/24 PSR sheet for Everton?

Better than beating around meaning of words and all that.

 

[pfim]

So I'm correct in saying that only 3 mil will gon on this year's PSR? Ignoring wages, just fee and assuming it is a 5 year deal as per reports.

Which was my original point to @ToffeeTim

No, this fiscal year ends in 5 days. Depending on the accounting policy, we'll book one month of the amortization, or none at all.

 

[toffee66]

See my BBC link above mate, I here you on the cash flow part like.

I think by now you get that the BBC link you posted was irrelevant. Ignore payment timings. Look at fee and contract length and timing of the contract signing to get amortisation correct. Simples.

 

[Toffeepot]

Genuinely the first transfer we’ve had that I’m excited about since James probably

He's that good yea? I never heard of him tbh

 

[Goat]

And to think people doubted Fab.

 

[pfim]

Okay mate, in your interpretation of the information, if we sign this kid for 15 mil today, how much goes on the 23/24 PSR sheet for Everton?

Better than beating around meaning of words and all that.

If it's a 5 year deal, either 250k (15,000,000/60) or nothing.

 

[DanB90]

I miss the days when I could enjoy football as a sport and didn’t have to read about amortisation and suchlike.

Games gone.

 

[Furey1878]

No, this fiscal year ends in 5 days. Depending on the accounting policy, we'll book one month of the amortization, or none at all.

So we are agreed that this transfer, if it happens of course, has little to no effect on the 23/24 PSR calculation for Everton?

Again, I take your point about cashflow. And that Beto will have had an impact on the PSR calculation for this year.

 

[toffee66]

No, this fiscal year ends in 5 days. Depending on the accounting policy, we'll book one month of the amortization, or none at all.

Correct, and it is more likely to be the month after signing to start amortisation as the principle is to match the ‘use’ of the asset and the amortisation. It does at Spurs and Chelsea as a fact (as I know both their former FDs).

 

[pfim]

So we are agreed that this transfer, if it happens of course, has little to no effect on the 23/24 PSR calculation for Everton?

Again, I take your point about cashflow. And that Beto will have had an impact on the PSR calculation for this year.

Correct, little or no effect for 6/30/24. Beto's contract will have been amortized since the day it was signed, so yes it will affect the numbers for 6/30/24

 

[pfim]

He's that good yea? I never heard of him tbh

He's got a great amortization schedule.

 

[DanB90]

NERDS!

 

[RomanReigns]

I miss the days when I could enjoy football as a sport and didn’t have to read about amortisation and suchlike.

Games gone.

should change the title of football manager to amortisation manager

 

[DanB90]

should change the title of football manager to amortisation manager

They should add it to the list of banned words.