Confirmed Signing Iliman Ndiaye

[Tony’s Carp]

This isn't me trying to be an accountant mate, it's verbatim repeating stuff I've seen reported

"The Athletic interestingly add that Everton will not have to make a payment for Beto until the next financial year. Everton’s latest set of accounts suggest this means a payment won’t be made until July 2024 as their last financial year ended on 30 June 2022."

https://www.[Publication is blackli...interestingly add that,ended on 30 June 2022.

None of that is being disputed. The timing of the actual cash payments is irrelevant for PSR.

 

[mikewex]

This isn't me trying to be an accountant mate, it's verbatim repeating stuff I've seen reported

"The Athletic interestingly add that Everton will not have to make a payment for Beto until the next financial year. Everton’s latest set of accounts suggest this means a payment won’t be made until July 2024 as their last financial year ended on 30 June 2022."

https://www.[Publication is blackli...interestingly add that,ended on 30 June 2022.

Cash flow and amortisation are very different things. Cash flow is essentially irrelevant to profit and loss.

 

[toffee66]

Your interpretation is simply wrong Furey. The timing of the payments has NO bearing on the accounting for the fee for P&L and PSR payments as I made clear in my post. Cash flow is not PSR/P&L accounting. The delayed fee is a cash flow not a PSR benefit.

 

[mikewex]

Right, that’s all the accountant’s stuck their oars in.

 

[Furey1878]

The whole fee is recognised for accounting purposes when the contract is signed.

The fact we only pay later is a cash flow benefit.

"In contrast, the amount paid by the buying club is spread out - using an accounting practice called amortisation - over the length of the contract."

Have Chelsea, Villa, Everton and Newcastle found a PSR loophole?

With several Premier League clubs trading home-grown academy players between themselves, is this another PSR loophole?

www.bbc.co.uk

 

[Paul Rideout]

Is that you Jim ratcliffe ?

Rather be Jim ‘tight as a ducks anus’ Radcliffe than Farhad ‘bidding war against himself’ Moshiri

 

[Furey1878]

Okay I here you all on cash flow, but the amortization means that if we sign a player for 15 mil on a 5 year deal, then only 3 mil a year goes on that players fee for PSR

 

[Furey1878]

Your interpretation is simply wrong Furey. The timing of the payments has NO bearing on the accounting for the fee for P&L and PSR payments as I made clear in my post. Cash flow is not PSR/P&L accounting. The delayed fee is a cash flow not a PSR benefit.

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

 

[pfim]

Okay I here you all on cash flow, but the amortization means that if we sign a player for 15 mil on a 5 year deal, then only 3 mil a year goes on that players fee for PSR

Correct, but it starts on the day he signs.

 

[Furey1878]

Correct, but it starts on the day he signs.

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

 

[mikewex]

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

It’s phrased badly there. The Value of the player is amortised over the length of the contract, that will almost never have any connection to the way it’s paid. Your second post though is correct.

 

[mikewex]

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

Probably less, there is only a week left and amortisation would presumably be prorated.

 

[Tony’s Carp]

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 because a) he hasn’t signed yet and may not before July 1 and b) only the proportion of the contract that falls within this financial year would count on these accounts which even if he signed today would be 1 week.

This is why the player swap thing works so well in the last week of the season.

 

[pfim]

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

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.

 

[Furey1878]

No because a) he hasn’t signed yet and may not before July 1 and b) only the proportion of the contract that falls within this financial year would count on these accounts which even if he signed today would be 1 week.

This is why the player swap thing works so well in the last week of the season.

Yeah as above, but the max it could be is 3 mil I suppose for a full calendar year. Again we are assuming this deal goes through here for argument sake.