Lets all laugh at Newcastle

[hellava_tough]

Swiss Ramble has done a twitter thread on how Newcastle could start to spend the cash and stay within FFP rules. It’s depressing though. They’ll soon be up there.

So we've established that for FFP accounting purposes, the cost of a player is spread over the length of their contract.

So what's to stop a club signing a player on a 100 year contract, where the first 5 years his salary is £500k a week and then for the remaining 95 years it drops to the minimum wage of £9.50 a week (for 1 hour a week), and a clause that allows him to buy out his own contract after the first 5 years are up.

Say it's a £150m signing with £130m in wages over 5 years, then £50k (approx.) wages for the last 95 years.

Spread over 100 years, that's £2.8m a year loss, which is obviously a fraction of the £105m loss over 3 years that is allowed.

And you could also give the player an 'extra' £50k signing on bonus to buy his contract out at the end of the 5 years.

Are there any accountants on here that could comment on this? I'm genuinely interested.

Presumably there's a rule that stops this from happening, because other clubs would have done it?

 

[Spurslove]

But could Conte or Pep actually take a relegation team and make them into champions. Neither have ever done that, they’ve always gone it to clubs that were at least top 4. I’d love to see what would happen if you appointed Conte right now but I really don’t think he’d take it especially with United possibly on horizon.

Gve me £3-4 billion and I could probably do it.

.

 

[GMI]

Crumbs…he sounds like an interesting chap to be in charge of your football club….

Saudi crown prince a ‘psychopath’, says exiled intelligence officer | Saudi Arabia | The Guardian

Saad Aljabri says Mohammed bin Salman boasted he could kill former ruler King Abdullah

amp.theguardian.com

 

[hellava_tough]

Gve me £3-4 billion and I could probably do it.

.

This is it really.

 

[hellava_tough]

Crumbs…he sounds like an interesting chap to be in charge of your football club….

Saudi crown prince a ‘psychopath’, says exiled intelligence officer | Saudi Arabia | The Guardian

Saad Aljabri says Mohammed bin Salman boasted he could kill former ruler King Abdullah

amp.theguardian.com

Makes you wonder if he'll get 'hands on' in the Premier League.

 

[KaribYid]

So we've established that for FFP accounting purposes, the cost of a player is spread over the length of their contract.

So what's to stop a club signing a player on a 100 year contract, where the first 5 years his salary is £500k a week and then for the remaining 95 years it drops to the minimum wage of £9.50 a week (for 1 hour a week), and a clause that allows him to buy out his own contract after the first 5 years are up.

Say it's a £150m signing with £130m in wages over 5 years, then £50k (approx.) wages for the last 95 years.

Spread over 100 years, that's £2.8m a year loss, which is obviously a fraction of the £105m loss over 3 years that is allowed.

And you could also give the player an 'extra' £50k signing on bonus to buy his contract out at the end of the 5 years.

Are there any accountants on here that could comment on this? I'm genuinely interested.

Presumably there's a rule that stops this from happening, because other clubs would have done it?

It's not just for FFP purposes. It's how accounting for assets are done.

If it's a fixed asset, the cost of the asset is spread over it's useful life through depreciation. If it's an intangible asset (which is what football player contracts are accounted for as), its cost is amortized over the useful life - which is in this case, the length of the contract.

What's stopping a club from signing a player to a 100 year contract is the reality that no player would tie themselves down like that. Also, it is the transfer fee that is amortized over the length of the contract. The player wages are a line item expense and is accounted for in full for FFP purposes.

Expenses are matched against revenue for FFP. City have gotten around that by artificially inflating their revenue through bogus sponsorship deals. PL clubs are currently trying to stop Newcastle from doing that.

 

[lincspurs]

Expenses are matched against revenue for FFP. City have gotten around that by artificially inflating their revenue through bogus sponsorship deals. PL clubs are currently trying to stop Newcastle from doing that.

Then why didn’t they stop City doing it, & presumably Chelsea before that?

 

[Delboy75]

Should go for Moyes seems really obvious. Probably on peanuts at West Ham I reckon he’d jump at it.

 

[spursfan77]

 

[Wheeler Dealer]

I read that John Terry is being linked. A perfect marriage of a horrible human being working for a horrible and detested regime.

 

[dontcallme]

I read that John Terry is being linked. A perfect marriage of a horrible human being working for a horrible and detested regime.

I'd be very surprised if they went with a rookie.

 

[al_pacino]

Danny Murphy had it right. Someone to keep them up this season and some players loaned in, then actually start properly in the summer.

 

[dontcallme]

Danny Murphy had it right. Someone to keep them up this season and some players loaned in, then actually start properly in the summer.

One potential issue they could have is buying players to keep them out of relegation then by next season find these players are no longer needed.

Paying a high fee on loans could be a sensible option for them.

Of course, I'm hoping they go down the buy experienced Prem players route and take Davies, Winks and Alli off our hands.

 

[Marty]

Danny Murphy had it right. Someone to keep them up this season and some players loaned in, then actually start properly in the summer.

There's a first

 

[Delboy75]

I think they’ve made a massive mistake not appointing a new manager. Feels like they’ve lost all the momentum even though only got 1 point since takeover ?

 

[Spurslove]

I think they’ve made a massive mistake not appointing a new manager. Feels like they’ve lost all the momentum even though only got 1 point since takeover ?

Yeah, shame

.

 

[Delboy75]

Big trouble 6pts adrift and awful goal difference. If they don’t appoint a manager this week I call the whole thing a sham ?

 

[Thewobbler]

Probably the right manager for them giving there current situation

 

[Yiddo100]

Probably the right manager for them giving there current situation

That would be an incredible appointment for them, take his Arsenal days out of the question and I would have probably taken him here at some point in the last year

 

[DJS]

Why would Emery leave Sevilla though to come back to an English club?