2019/20 Michael Keane

[BornBlue76]

I don’t think that’s how it works is it? The £6m a year is because we’ve effectively pretended we’re paying the transfer fee over the course of 5 years, so the accounts are based on us paying out that £12m in the next two years. The new contract doesn’t change that, we would still have to square up the transfer fee regardless.

amortisation is not trying to reflect a payment schedule.. amortization reflects the write off of the contract. If the contract is extended the write off should reflect the remaining life of the contract. I would guess that there might be signing fees which would get added, but I don’t know if these are ever actually included or not in an extension.

 

[Lanolin]

amortisation is not trying to reflect a payment schedule.. amortization reflects the write off of the contract. If the contract is extended the write off should reflect the remaining life of the contract. I would guess that there might be signing fees which would get added, but I don’t know if these are ever actually included or not in an extension.

No I understand how it works in a general accounting sense, but in football terms the fees he’s talking about are the transfer fees. We have to pay his wages regardless so that changes nothing, the issue is that you write off the transfer fee over the course of the original contract. As far as I’m aware, extending the contract makes no difference to that, otherwise you could negate any book losses by agreeing sham contracts with break clauses to reduce a players book value when you know they’re leaving.

 

[BornBlue76]

No I understand how it works in a general accounting sense, but in football terms the fees he’s talking about are the transfer fees. We have to pay his wages regardless so that changes nothing, the issue is that you write off the transfer fee over the course of the original contract. As far as I’m aware, extending the contract makes no difference to that, otherwise you could negate any book losses by agreeing sham contracts with break clauses to reduce a players book value when you know they’re leaving.

you could be right. I haven’t checked what the rules say on this... logically makes sense to me but accounting rules have become anything but logical

 

[Connor]

Five-year extension.

 

[Bainesy's Left Peg]

New contract makes sense, he is a solid player, it is protecting his value and it is going to save us money in our books because of how amortization works. We have signed him for £30M on a 5 year contract 3 years ago. That means he is costing us £6M per year, so around £12M is left in our books. If he signs a new 5 year contract, that number goes way down - from £6M per year to £2.4M per year. This is a really important number for FFP purposes, it basically allows us to sign one half of Allan as he is going to sign for £22M for 3 years - that's £7.3M per year.

Fair play

 

[maccavennie]

Don't mind us giving him an extension as long as his wages were halved in the process.

 

[JLW]

 

[Nymzee]

Testimonial.

 

[Carloblues]

Odd decision to give this clown a new contract

 

[maccavennie]

fkin 5 years!

Lord have mercy on our souls

 

[wainy]

Holgate and Keane cb next year then.

 

[JLW]

That will show Barca where his future is!!!

 

[Ring master]

So seems that Fan that said he signed a new deal earlier this week- [he said 4 year deal] but it was not said was pretty much right then about Extension

 

[maccavennie]

Hope we put in a 100m release clause just to fend off any interest from the big boys

 

[Nymzee]

It's a 3-year deal effectively, not 5.