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RE: NFFC Financial Talk - Fumanchew - 22-03-2024
PM rishi sunak has been at the city ground today launching an initiative with EM you do wonder wether EM pulled him into the board room for a chat
RE: NFFC Financial Talk - Deeler16 - 22-03-2024
(22-03-2024, 08:19 PM)Fumanchew Wrote: PM rishi sunak has been at the city ground today launching an initiative with EM you do wonder wether EM pulled him into the board room for a chat
Would be an opportunity missed if not. Points deduction to council playing silly buggers iro the lease
RE: NFFC Financial Talk - Username - 22-03-2024
(22-03-2024, 05:33 PM)Reds73 Wrote:(22-03-2024, 02:08 PM)Username Wrote:(22-03-2024, 12:29 PM)Reds73 Wrote:(22-03-2024, 10:06 AM)Username Wrote:That’s how amortisation of players works.(21-03-2024, 11:41 PM)Reds73 Wrote: Yes that is correct.
Because it was 15m with a 1yr contract, if we offer him a 12 month extension before 30th June, his amortised cost reduces from 15m to 7.5m in this years accounts.
Mangala, + Wood extension almost gets us to where we need to be.
In an ideal world that happens so we can then use the whole window to get as much as possible for Murillo
Where are you getting this from please as I don’t understand it to be correct?
Buy player for 20m on a 5 yr contract
Cost in accounts is 4m per year
After 3 years the outstanding cost is 8m (3 x 4m already accounted for).
Player then gets 2 yr extension, hence has 4 yrs remaining on deal.
The annual cost reduces to 2m a year for next 4yrs to account for the 8m outstanding.
This is how amortisation works and has always worked.
I fully understand how amortisation works.
However, using the concept you are suggesting we could give MGW another four years to spread the cost.
I don't think that is correct. It would also involve submitting restated accounts.
Do you know for a fact what you are suggesting is correct by EPL accounting standards or is it something you think is right?
It doesn’t involve submitting re-stated accounts at all.
In the Chris Wood example his 15m fee all goes into the accounts that end 30th June 2024 as he only signed a 1 yr deal.
However, if he were to sign a 12 month extension pre 30th June 2024, then the cost in the accounts from 1st July 2023 to 30th June 2024 would be 7.5m
The other 7.5m would be included in 1st July 2024 to 30th June 2025 accounts.
Re your MGW Example
30m fee 5 yr contract signed = 6m a year cost.
So currently 12m has been amortised as at 30th June 2024 so 18m remaining.
If he were to sign a new 4 yr comtract, the max length you can now amortise is 5yrs.
So the remaining 24m would be spread over 5 yrs, meaning 4.8m would go into this years accounts rather than 6m
It doesn’t change the amount you have already amortised in the previous year.
I’ll ask again, where does this accounting principle come from?
RE: NFFC Financial Talk - Reds73 - 23-03-2024
(22-03-2024, 10:16 PM)Username Wrote:(22-03-2024, 05:33 PM)Reds73 Wrote:(22-03-2024, 02:08 PM)Username Wrote:(22-03-2024, 12:29 PM)Reds73 Wrote:(22-03-2024, 10:06 AM)Username Wrote: Where are you getting this from please as I don’t understand it to be correct?That’s how amortisation of players works.
Buy player for 20m on a 5 yr contract
Cost in accounts is 4m per year
After 3 years the outstanding cost is 8m (3 x 4m already accounted for).
Player then gets 2 yr extension, hence has 4 yrs remaining on deal.
The annual cost reduces to 2m a year for next 4yrs to account for the 8m outstanding.
This is how amortisation works and has always worked.
I fully understand how amortisation works.
However, using the concept you are suggesting we could give MGW another four years to spread the cost.
I don't think that is correct. It would also involve submitting restated accounts.
Do you know for a fact what you are suggesting is correct by EPL accounting standards or is it something you think is right?
It doesn’t involve submitting re-stated accounts at all.
In the Chris Wood example his 15m fee all goes into the accounts that end 30th June 2024 as he only signed a 1 yr deal.
However, if he were to sign a 12 month extension pre 30th June 2024, then the cost in the accounts from 1st July 2023 to 30th June 2024 would be 7.5m
The other 7.5m would be included in 1st July 2024 to 30th June 2025 accounts.
Re your MGW Example
30m fee 5 yr contract signed = 6m a year cost.
So currently 12m has been amortised as at 30th June 2024 so 18m remaining.
If he were to sign a new 4 yr comtract, the max length you can now amortise is 5yrs.
So the remaining 24m would be spread over 5 yrs, meaning 4.8m would go into this years accounts rather than 6m
It doesn’t change the amount you have already amortised in the previous year.
I’ll ask again, where does this accounting principle come from?
FRS - Financial Reporting Standards in the UK
RE: NFFC Financial Talk - Red Dog - 24-03-2024
If Everton's case closed on Friday, are we expecting the turn-around to be the same as ours and the result to be announced a week on Monday?
RE: NFFC Financial Talk - zicorice - 24-03-2024
Originally started this post in transfer thread but then it became more about Financials.
Having spent last Monday analysing the commission report, it has to be remembered exactly when players were signed. Ie. After June 2022 for most of our summer signings I seem to recall? So the big spend after promotion won't be "disappeared" until June 2026! Though I assume our £105 million loss allowance starts one year earlier ie From July 1st this year onwards. So this affects our transfers hugely.
The £12 million "projected loss" this year likely appears (from reading report) to be based on finishing around 12th. So another £12-14 million can probably be added if we finish 17th (which we'd all take I assume).
My expertise is more in law than accountancy, so vast majority of my assumptions are from having to analyse the wording of the commission for a media guy. Much of the commission report is based on fact (though some of it most definitely isn't).
I think our wage bill is a huge millstone at present. Also the "costs" liability have yet to be decided for commission- which will be extortionate. We will most likely have to foot whole bill.
In short we need a significant influx of money (My guess being significantly north of £20 million) before June 30th this year.
I am not sure if the extra Mangala money coming our way is already included in projections given to commission (Surely they would be).
Removal of significant salaries ironically only helps next year's books.
Shows how ridiculous the PSR rules are.
As for commission decision.... persistently contradicts itself in obita (reasoning) though I'd say final decision a touch harsh but fair. Everton must be worrying though as their legal team will have noted all the references to the Everton appeal and potential "aggravating factors" (ie offending for a 2nd time).
RE: NFFC Financial Talk - The reds - 24-03-2024
(24-03-2024, 11:25 AM)Red Dog Wrote: If Everton's case closed on Friday, are we expecting the turn-around to be the same as ours and the result to be announced a week on Monday?
The Everton case starts tomorrow. It is a 3 day hearing and will be finished on the 27th March, So with midweek games the following week I think the result will be announced either Friday 5th April or Tuesday 9th April after the 6-8th weekend fixtures.
RE: NFFC Financial Talk - Red Dog - 24-03-2024
(24-03-2024, 12:08 PM)The reds Wrote:(24-03-2024, 11:25 AM)Red Dog Wrote: If Everton's case closed on Friday, are we expecting the turn-around to be the same as ours and the result to be announced a week on Monday?
The Everton case starts tomorrow. It is a 3 day hearing and will be finished on the 27th March, So with midweek games the following week I think the result will be announced either Friday 5th April or Tuesday 9th April after the 6-8th weekend fixtures.
Thanks.
3 days so possibly more complex than ours? Hopefully that means any sanction will be greater than ours if guilty, especially as a 2nd offence!
RE: NFFC Financial Talk - The reds - 24-03-2024
(24-03-2024, 01:15 PM)Red Dog Wrote:(24-03-2024, 12:08 PM)The reds Wrote:(24-03-2024, 11:25 AM)Red Dog Wrote: If Everton's case closed on Friday, are we expecting the turn-around to be the same as ours and the result to be announced a week on Monday?
The Everton case starts tomorrow. It is a 3 day hearing and will be finished on the 27th March, So with midweek games the following week I think the result will be announced either Friday 5th April or Tuesday 9th April after the 6-8th weekend fixtures.
Thanks.
3 days so possibly more complex than ours? Hopefully that means any sanction will be greater than ours if guilty, especially as a 2nd offence!
You would assume it would be. Negative Trend in losses, Repeat offence, blatant disregard to the rules, Double Jeopardy won't run and that's why Forest have to stay within the rules this year.
RE: NFFC Financial Talk - JollyLolly - 24-03-2024
Monday is the last day available to us to make an appeal, wonder if this will be the case?
RE: NFFC Financial Talk - Red Dog - 24-03-2024
(24-03-2024, 01:33 PM)JollyLolly Wrote: Monday is the last day available to us to make an appeal, wonder if this will be the case?
Much as I would like us to, I hope we don't. Take our punishment, grow a pair, beat the system and give them a V sign at seasons end WHEN we stay up
RE: NFFC Financial Talk - Tricky - 24-03-2024
(24-03-2024, 02:20 PM)Red Dog Wrote:(24-03-2024, 01:33 PM)JollyLolly Wrote: Monday is the last day available to us to make an appeal, wonder if this will be the case?
Much as I would like us to, I hope we don't. Take our punishment, grow a pair, beat the system and give them a V sign at seasons end WHEN we stay up
^^^ Agreed ^^^