(01-03-2019, 07:02 PM)ozzyten10 Wrote: This year’s figures (posted next year) will be interesting. I can see a number of issues but hopefully offset by increased sponsorship, TV and increased attendances. This should see us well within the £39m allowable loss limit. It is also on the agenda that this is to be increased slightly by the EFL in future accounting periods with the allowable use of writing off of loans becoming popular amongst owners in the division. Their argument being the inequality die to parachute payments. This would in theory protect clubs in loading debt and ensure creditors are paid. However Uefa / FIFA are not on the same sheet.
I’m confident the club knows what they are doing and have enough wiggle room to maintain sensible investment next year if as likely we don’t make it up. I don’t expect any £10m signings though.

(02-03-2019, 10:07 PM)NG3 Wrote:

(02-03-2019, 08:25 PM)zicorice Wrote:

(01-03-2019, 07:02 PM)ozzyten10 Wrote: This year’s figures (posted next year) will be interesting. I can see a number of issues but hopefully offset by increased sponsorship, TV and increased attendances. This should see us well within the £39m allowable loss limit. It is also on the agenda that this is to be increased slightly by the EFL in future accounting periods with the allowable use of writing off of loans becoming popular amongst owners in the division. Their argument being the inequality die to parachute payments. This would in theory protect clubs in loading debt and ensure creditors are paid. However Uefa / FIFA are not on the same sheet.
I’m confident the club knows what they are doing and have enough wiggle room to maintain sensible investment next year if as likely we don’t make it up. I don’t expect any £10m signings though.

Didn't the takeover produce a huge 2017 accounting profit (£32 million from memory) due to writing off of loans? Even though in reality it doesn't mean there is lots of cash to spend, would it protect us from ffp for a good while?

No, only a % of that counts as there are limits on personal investment (of which debt write offs count), however we're nowhere near danger at present.

Amortised we could still spend a shitload (technical term) this summer, although that is no guarantee that we will.

Just because you can max out the credit card doesn't mean you should, or would.

(02-03-2019, 10:40 PM)NG3 Wrote:

(02-03-2019, 10:16 PM)zicorice Wrote: So we are protected fom Ffp then as things stand?

I obviously don't have access to the full accounts, but yes, we're quite safe at present & can spend, by our standards, relatively big still.

It's one I've been watching for & the new owners have grasped it so it's not only under control but I expect it to stay that way too.

The missing year, this year, should see an increased wage bill, so that will cost a little but because of amortisation the £25m summer spend doesn't get written down as £25m, of the bigger transfers Figueiredo is spread over 4 years, so about £500k a year, Carvalho over 5 years, so about £2.6m a year, Soudani over 3 years, about £1m a year & Grabban over 4 years, so about £1.5m a year.

That leaves last summers spending being recorded as about £5.6m, which is offset by Brereton's sale, meaning we're not far off break evens for transfers this year, with a slight increase in wages, possibly offset by increased ticket sales & commercial revenue.

Of course that means we carry next year's £5.6m instalment in to the summer, which comes off the summer spend, so we don't have bottomless pockets, but we still have spending power without troubling FFP.

(02-03-2019, 10:40 PM)NG3 Wrote:

(02-03-2019, 10:16 PM)zicorice Wrote: So we are protected fom Ffp then as things stand?

I obviously don't have access to the full accounts, but yes, we're quite safe at present & can spend, by our standards, relatively big still.

It's one I've been watching for & the new owners have grasped it so it's not only under control but I expect it to stay that way too.

The missing year, this year, should see an increased wage bill, so that will cost a little but because of amortisation the £25m summer spend doesn't get written down as £25m, of the bigger transfers Figueiredo is spread over 4 years, so about £500k a year, Carvalho over 5 years, so about £2.6m a year, Soudani over 3 years, about £1m a year & Grabban over 4 years, so about £1.5m a year.

That leaves last summers spending being recorded as about £5.6m, which is offset by Brereton's sale, meaning we're not far off break evens for transfers this year, with a slight increase in wages, possibly offset by increased ticket sales & commercial revenue.

Of course that means we carry next year's £5.6m instalment in to the summer, which comes off the summer spend, so we don't have bottomless pockets, but we still have spending power without troubling FFP.

(03-03-2019, 03:48 PM)NG3 Wrote:

(03-03-2019, 03:31 PM)stirred Wrote: I gather the profit / loss of the club is far from the full picture from FFP. Certain expenditure is exempt, along the lines of infrastructure - so I assume the new stadium work for example - and academy investment.

Yes, the stadium work & the Academy are exempt from FFP

Quote:Also highlights the value of academy products for repairing the FFP picture - since they cost nothing, so have no asset value sitting on the balance sheet, any transfer fee is pure profit for that year.

Yes, the academy is exempt from FFP when it comes to us spending, but at the same time produces a valid income stream to offset FFP.

It's why, financially, backing the Academy & it's products is such a no-brainer.

It's also why questions were asked, last autumn, about the treatment of certain young players, because if we don't have clear career paths for our young academy graduates they just become depreciating assets.