ProZ
Player Valuation: £40m
That's why the ability to trade players is important until we increase revenues from a new stadium and commercial/sponsorship activities.
Let's say we spend £150 million on 5 players (each on 4 year contracts) this summer each earning an average of £100,000 per week.
In accounting terms that equates to £26 million in wages and £37.5 million in player depreciation - a total of £62.5 million deducted from the P&L account. All other income and costs being equal we can live with that without a problem. However we can not repeat that exercise the following without generating player trading profits or an increase income in year 2 of this expansionary phase. That's why the biggest clubs periodically trade players - in accounting terms it allows the opportunity to keep acquiring new players whilst keeping within the PL rules/FFP in terms of over spending.
We can do this for a few years - 3 or 4 probably - that's why we need a clever DoF, increased income from a new stadium, greater performance revenues (Including CL?) and commercial/sponsorship revenues.
I've no doubt we will do this, it's just an explanation of what's required.
When I mentioned such things in the other thread I got a cabbage thrown at me.