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RichieB

Joao to Reading is close according to Dom

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Just now, sheriwozgod said:

At least all this is diverting us from the fact that we dont have a manager / shirt sponsor / CEO for a few days.

 

What on earth do we need a shirt sponsor or CEO for? lol

 

What a strange couple of things to add in

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3 minutes ago, OxonOwl said:

 

You can't put it all in the accounts because you might never get it.

The important thing is that we get to show the whole fee in the profit and loss account straight away irrespective of the amount of money paid over at the time of the deal. We show the money coming in as cash in hand and the balance as a debt owed to us. Both appear on the credit side from the date of the transfer. As further payments are made the cash in hand increases and the debt owed to us reduces. Effectively the whole fee helps us for P & S purposes in the accounting year of the sale.

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Let’s assume conservatively

5m plus add ons for Joao

4m Rhodes 

3m for Bruce and co.

 

Thats 12m raised but assuming only a percentage of Joao fee is up front this year, say 1/2m. We have to pay Boro 4m for Rhodes to settle up (but saves us his wage for he year and the 2m annual payment) 3.5m. Plus Bruce cash. Estimate of circa 7/8mincome for the accounts this year.

 

Hard to see where we are at with the accounts moving forward but if were out of the embargo we must have a bit of that to play with now.

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1 minute ago, prowl said:

The important thing is that we get to show the whole fee in the profit and loss account straight away irrespective of the amount of money paid over at the time of the deal. We show the money coming in as cash in hand and the balance as a debt owed to us. Both appear on the credit side from the date of the transfer. As further payments are made the cash in hand increases and the debt owed to us reduces. Effectively the whole fee helps us for P & S purposes in the accounting year of the sale.

 

Will it help in future seasons or just this one? Assuming it all goes on this year then we’d probably have north of 11m income for the accounts with Rhodes, Bruce and Joao out the door. It was suggested on here we needed to find that amount and then we’d be ok. 

Edited by Bluesteel

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21 minutes ago, SallyCinnamon said:

 

Exactly. You have Lees, Borner, Iorfa, Van Aken, Thorniley and even Hutch if needed to play centre back. 

 

In midfield we are playing with 3 and only have 4 options. If we are only bringing 1 or 2 in i’d much rather we beef up the middle of the park. 

 

Hector was our best defender by a mile last season. There are question marks over all the others you named. Plus we see the better of Lees when he's alongside a commanding powerful centre back. He looked a much better player alongside Loovens and Hector. Hutch is injury prone and more valuable in midfield, Borner is an unknown quantity that could still go either way, Iorfa as performed better at full back at times, the others are inconsistent. There's no question that we still need Hector and with the way he fitted in last season, he surely has to be our main priority. It's unfair to compare him with the likes of McGugan and Rhodes, when Hector was our player of the season.

Edited by The Night-Owl
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35 minutes ago, steelcityowlsfan said:

Who's f***ing buying him, Northern Rock?!!!

Wonga, we'll get the massive interest rates. :rolleyes:

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But Reading though. They must have promised him a start every game and some of that wavered sell-on clause cos who normally would go there in their situation. Many see them as relegation fodder. 

Edited by basegreenowl

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1 minute ago, pazowl55 said:

I always thought for buying it's done over the length of contract. So with rhodes 8m  that's 2m each season ffp.

 

But for selling it's all upfront. so 6m counts towards our losses this or next season.

 

this is regardless of how the clubs finance the deal.

 

When you buy and you pay all at once, the money can go through the accounts spread over the length of the contract. If in instalments it would be accounted as and when it is paid

 

When you sell you can only account for the money as you receive it, in case you don't get it all.

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Brainless decision - I know no one would buy Fletcher due to his age & wages, but Joao would have been the last striker out for me. 25, coming into his prime. If we'd have kept him & played him, he'd have been worth £10 million + by the end of this season.

 

Only Reading benefit from this. We lose our most talented striker & Joao signs for a middle of the road, going no where club.

 

Bitterly disappointed at this news.

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11 minutes ago, Bluesteel said:

 

How would that help us? 

 

If weve waited all summer for a pants down deal and let other replacements waltz off to wastelands like Wigan it is more than frustrating 

Maybe DC sees value in offsetting the fee against incoming transfers in future years FFP losses. Or maybe it's the best deal we could do, accept more but over longer?

 

Weve already generated £4m compensation plus c£2.5m wages saved on the Steve's and 3 first team players down on last years wage budget. Rhodes also looks to be out of the door, hopefully removing a £2m liability from this years losses, plus his considerable wage.

 

I'm no accountant, sure one will be along in a minute to tell me I'm talking testicles :biggrin:

Edited by striker

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12 minutes ago, EcclesallOwl said:

 

No transfer fees are paid completely upfront 

It's difficult to say never or ever, there are no hard and fast rules. It's down to the clubs, players and agents to agree the terms of the deal. 

 

 

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15 minutes ago, prowl said:

The important thing is that we get to show the whole fee in the profit and loss account straight away irrespective of the amount of money paid over at the time of the deal. We show the money coming in as cash in hand and the balance as a debt owed to us. Both appear on the credit side from the date of the transfer. As further payments are made the cash in hand increases and the debt owed to us reduces. Effectively the whole fee helps us for P & S purposes in the accounting year of the sale.

 

You can't count cash as income unless you have received it

 

Quote

With cash basis, only record income you actually received in a tax year. Don’t count any money you’re owed but haven’t yet received.

 

From www.gov.uk

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28 minutes ago, pazowl55 said:

Am pretty sure for FFP purposes it doesn't matter how we structure the deal with Reading. If the total we receive is say 6m money. that that comes off the ffp for this season.

 

an accountant may find ways 

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£800k up front does seem a small proportion of the £5-7m transfer fee, but don't forget reading have been umbongoed.... maybe they pay the balance in their next accounting period, which is before our July year end. So we get the £s in this financial year.... everyone then plays the FFP game

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14 minutes ago, Crofty_11 said:

Brainless decision - I know no one would buy Fletcher due to his age & wages, but Joao would have been the last striker out for me. 25, coming into his prime. If we'd have kept him & played him, he'd have been worth £10 million + by the end of this season.

 

Only Reading benefit from this. We lose our most talented striker & Joao signs for a middle of the road, going no where club.

 

Bitterly disappointed at this news.

 

£10M by the end of the season? 

 

We've been saying that for 4-5 seasons mate. When do you draw the line? Especially when we need to raise funds to improve other areas of the squad and keep our heads above the ffp water .

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20 minutes ago, Bluesteel said:

Let’s assume conservatively

5m plus add ons for Joao

4m Rhodes 

3m for Bruce and co.

 

Thats 12m raised but assuming only a percentage of Joao fee is up front this year, say 1/2m. We have to pay Boro 4m for Rhodes to settle up (but saves us his wage for he year and the 2m annual payment) 3.5m. Plus Bruce cash. Estimate of circa 7/8mincome for the accounts this year.

 

Hard to see where we are at with the accounts moving forward but if were out of the embargo we must have a bit of that to play with now.

We are £350k better off...

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42 minutes ago, prowl said:

They really aren't. Theres no set terms, it's negotiated at the time of sale. Some are paid straight away some over a set period.

 

Transfer fees are amortised over the length of the transfer but that is an accounting thing related to taxation and nothng to do with money passing between clubs.

 

Im of the impression that when you buy a player the fee is amortised over the length of the contract but when you sell a player the full fee shows as income in year one but any amounts outstanding by the buying club shows as a debt owed to the club.

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Great player, below average application. I don't believe you need great players to get out this league, you need the right players in the right positions who apply themselves every game to a high standard. Hate to say it but like the pigs last year. Get shut for a good sum and move on.

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