The bending of PSR rules

[Tipp blue]

Don’t think anybody really knows.

Well not on here/ socials anyway.

Nobody knows not even Everton or the PL... we could well have to argue over what is and is not P&S deductible.

 

[EFC_FRANCIS]

Its pretty much the same as what they paid for Deivid Washington & Angelo who you could argue are of similar talent. Infact Kellyman is probably seen as having more chance of doing something at Chelsea due to him not having to settle into the country/have experience in a PL environment

Would argue that none of them really stand a chance of doing anything at Chelsea. They're a basket case of a club addicted to signing players for the sake of it and will lose more money than they'll make with this strategy. But ye it is a similar value to others

 

[sbbefc]

Sorry if it's already been explained. But how are these deals benefiting us? To me it looks like we are swapping one over priced player for another. How does that help us with PSR we've spent money and we're just recouping what we've sold? Or am I missing something.

 

[Raino85]

Absolutely nothing the Premier League can do about it. They have no rule that states the league determines the value of a player. They couldn't justify Caicedo being priced at £120m or agree that Branthwaite is worth a mere £33m. They've got themselves in a right pickle here, Villa and Chelsea are playing them, and Villa are also doing it with us. Good.

In no world is he 12 times better than Iroegbunam despite me never seeing him play.
In no world is Caicedo 8 times better than someone like say.....Tyler Morton, who there is talk of the RS getting £15m for.

The inflated fees come from the high transfers, they are the ones that don't represent any value.

 

[ValBlue]

Isn’t this all because that Alice the MU fan moaned that we were circumventing the rules as opposed to having to complying with them by selling JB on the cheap to them. Nothing to see here….what a whinger.

People talked about that tweet because it was funny and also underpinned everyone’s thoughts that PSR is a glorified siphon for players to join the Red Cartel on cheaper transfers.

Also I don’t believe for a second that the league at any point wanted to stop administration as a result of PSR. They wanted to give us a bigger deduction than past punishments for actual bankruptcies. They do not give a flying feck if we go under it not. In fact part of me thinks they’d actively prefer it if it meant United got Branthwaite and Onana for nothing.

 

[msb]

Incoming player fees are expensed over the life of the contract.

Revenues for outgoing fees are booked the day of the transfer.

So if we sell Dobbin for 9 million, we realize a 9 million profit that day.

If we sign PSR Tim to a 5 year contract, 9 million fee, the expense is 1.8 million for the next 5 years.

9 million - 1.8 million = 7.2 million profit for year 1.

That's how it works.

In this instance, though, the profit is close to 9 million for the 23-24 accounts, because we realize the value of the Dobbin sale and we would only book one month of expense (if that) for PSR Tim since the fiscal year ends 06/30/24

Sorry if it's already been explained. But how are these deals benefiting us? To me it looks like we are swapping one over priced player for another. How does that help us with PSR we've spent money and we're just recouping what we've sold? Or am I missing something.

Only 4 pages before your enquiry?

Simplest explanation I have seen.

 

[Raino85]

Incoming player fees are expensed over the life of the contract.

Revenues for outgoing fees are booked the day of the transfer.

So if we sell Dobbin for 9 million, we realize a 9 million profit that day.

If we sign PSR Tim to a 5 year contract, 9 million fee, the expense is 1.8 million for the next 5 years.

9 million - 1.8 million = 7.2 million profit for year 1.

That's how it works.

In this instance, though, the profit is close to 9 million for the 23-24 accounts, because we realize the value of the Dobbin sale and we would only book one month of expense (if that) for PSR Tim since the fiscal year ends 06/30/24

Picking hairs here, but isn't it a 3 year contract? So £3m for the next 3 years?
Its hardly earth shattering amounts in the grand scheme of things

 

[Bedfordblue]

All I know is thank god for this PSR work around as we’ve needed a trope to replace the Dele loan one lately, and the constant asking for an explanation seems to fit perfectly
I look forward to the fume developing.

 

[Kevsleftpeg]

In no world is he 12 times better than Iroegbunam despite me never seeing him play.
In no world is Caicedo 8 times better than someone like say.....Tyler Morton, who there is talk of the RS getting £15m for.

The inflated fees come from the high transfers, they are the ones that don't represent any value.

I'm not sure that's the way transfer fees (or the price of anything) works. Just because someone costs twice as much doesn't mean people think he is twice as good.

 

[andy4efc]

Picking hairs here, but isn't it a 3 year contract? So £3m for the next 3 years?
Its hardly earth shattering amounts in the grand scheme of things

Yes, he was just using it an example, but yeah so 3m for the next 3 years, but then we get 9 immediately on the books.

6m improvement in PSR - and if I remember correctly, the reports were that we were very close to being under the limit. Whether that's enough or we just need a bit more. If we do need a bit more, assume DCL will go before 1st July.

 

[Raino85]

I'm not sure that's the way transfer fees (or the price of anything) works. Just because someone costs twice as much doesn't mean people think he is twice as good.

But that's my point.

The prices for the top players are the inflated astronomical fees, not £20m for an England youth international

 

[Kevsleftpeg]

But that's my point.

The prices for the top players are the inflated astronomical fees, not £20m for an England youth international

The price is the price. Caicedo turned out not to be a good value signing. Arsenal fans think Rice was a good value signing. But that assessment is based on how they have performed.

 

[Raino85]

The price is the price. Caicedo turned out not to be a good value signing. Arsenal fans think Rice was a good value signing. But that assessment is based on how they have performed.

Decent point.

 

[pfim]

Picking hairs here, but isn't it a 3 year contract? So £3m for the next 3 years?
Its hardly earth shattering amounts in the grand scheme of things

I didn't know what it was when I posted that. Regardless, the amortization charge will be minimal for 06/30/2024.

 

[Tipp blue]

1. Everton sell a player to Villa.
2. Villa sell a player to Everton.
3. Chelsea sell 2 hotels to themselves.
1 of these 3 scenarios didn't cause as much talk about cheating P&S rules as the other 2.