Joao to Reading is close according to Dom

[pazowl55]

16 minutes ago, ChapSmurf said:

 

I believe that to be the case. However, you've hit the nail on the head by saying "all the money we receive". We may not receive the full amount this season, depending on what was negotiated during the transfer. But whenever we receive a payment for the transfer, it will be on that years accounts.

Perhaps it changed when it went to p&s then because I always believed it to be the full amount regardless of when it is payed.

 

If you are right then that effectively means that we have sold Joao for 6 odd million and allowed a payment structure that would only see us register a fraction of it towards FFP. 

 

Just dont see us allowing it to happen that way when we need the sale money towards FFP this season.

[HirstWhoScoredIt]

31 minutes ago, ChapSmurf said:

 

I believe that to be the case. However, you've hit the nail on the head by saying "all the money we receive". We may not receive the full amount this season, depending on what was negotiated during the transfer. But whenever we receive a payment for the transfer, it will be on that years accounts.

Surely that’s incorrect.

 

Otherwise debtors would never be in your accounts as you’ve not yet had the cash.

[HOOTIE AND THE SHIT TU]

3 hours ago, FreshOwl said:

Damn that’s woeful.

 

£1m on promotion? Reading are never going up this year or anytime soon, so that should be higher 

 

£350k for 20+ goals in the championship, seriously? 

 

Can we get a proper negotiator in at the club please ffs, doesn’t seem like there’s been one for over 20 years 

You don't think that's real do you?

[Daz]

3 hours ago, EcclesallOwl said:

£5m rising to £7m with add ons

 

& 20% sell on fee

 

Cracking business

 

Where did Reading get 5m from when they, like us, have been handcuffed by FFP?

[HirstWhoScoredIt]

48 minutes ago, ChapSmurf said:

 

I believe that to be the case. However, you've hit the nail on the head by saying "all the money we receive". We may not receive the full amount this season, depending on what was negotiated during the transfer. But whenever we receive a payment for the transfer, it will be on that years accounts.

After reading around this, I am convinced the income that is certain will all go in this years accounts.

 

For instance if the deal is:-

 

£800K upfront

£800K after year 1 guaranteed

£800K after year 2 guaranteed 

£800K after year 3 guaranteed

£800K after year 4 guaranteed

£2m depending on various clauses / add ons 

 

Then I think, you would attribute £4m straight to this years accounts. I.e. the guaranteed income.

Edited August 6, 2019 by HirstWhoScoredIt

[ChapSmurf]

27 minutes ago, pazowl55 said:

Perhaps it changed when it went to p&s then because I always believed it to be the full amount regardless of when it is payed.

 

If you are right then that effectively means that we have sold Joao for 6 odd million and allowed a payment structure that would only see us register a fraction of it towards FFP. 

 

Just dont see us allowing it to happen that way when we need the sale money towards FFP this season.

 

20 minutes ago, HirstWhoScoredIt said:

Surely that’s incorrect.

 

Otherwise debtors would never be in your accounts as you’ve not yet had the cash.

 

You both may be correct. As I said, I am not an Accountant, and certainly not a football finance expert.

 

As for Debtors, surely they would be in the accounts if no cash had been received, as they would be classed as a trade debtor, or the football world equivalent? Isn't that how it works normally?

 

4 minutes ago, HirstWhoScoredIt said:

After reading around this, I am convinced the income that is certain will all go in this years accounts.

 

For instance if the deal is:-

 

£800K upfront

£800K after year 1 guaranteed

£800K after year 2 guaranteed 

£800K after year 3 guaranteed

£800K after year 4 guaranteed

£2m depending on various clauses / add ons 

 

Then I think, you would attribute £4m straight to this years accounts. I.e. the guaranteed income.

 

Maybe this is the case, or if not the actual accounting method, proof at least for FFP.

 

Would this mean that Reading need to post the same £4M, as an outgoing, even if they have not paid the full amount yet? Surely it must, otherwise the books don't add up for the HMRC, nor for FFP either.

[HirstWhoScoredIt]

25 minutes ago, ChapSmurf said:

 

 

You both may be correct. As I said, I am not an Accountant, and certainly not a football finance expert.

 

As for Debtors, surely they would be in the accounts if no cash had been received, as they would be classed as a trade debtor, or the football world equivalent? Isn't that how it works normally?

 

 

Maybe this is the case, or if not the actual accounting method, proof at least for FFP.

 

Would this mean that Reading need to post the same £4M, as an outgoing, even if they have not paid the full amount yet? Surely it must, otherwise the books don't add up for the HMRC, nor for FFP either.

No. For FFP it is amortised over the length of the contract for the buying club.  In this case 4 years.

[Westfield Owl]

16 hours ago, Royal_D said:

Why people are talking about Hector replacing Joao is a bit bizarre 

 

Because this has been a rather deflating transfer window/summer off-season.  We have a worst squad at the moment than the one that finished last season.

 

Fans need to cling onto some bit of hope.

[steelowl]

Reading certainly going for it this season  signing players left right and center  thought they were in trouble like us  sold their stadium to themselves ?