Where Do We Go From Here?

I don't think there is any situation where a 5 year deal at 1.3 million is a better option than a 3 year deal at 2 million followed by a 2 year contract elsewhere.

 

You are still paying higher rate income tax on less money

 

I'm sure someone posted some stats on here a year ago which showed we had the lowest payroll bill in the league ? I remember the late, great, Rookerydad commenting that was probably your best measure of where you should expect to finish in the league.

 

Even if that 2 year contract is at the Shell garage on £8 an hour - it's still better.

 

Where do they get those figures from?

I'm fairly sure the club don't report them, and I strongly doubt the players do; that gives their agent no negotiation leverage for a potential transfer.

 

I remember when I used to work in Nationwide in Beaconsfield. A lot of snooty customers in there. We were told to try and get people to get their money into savings accounts to pay them interest. When I told some woman with 6 fugures sitting in a zero interest current account that she could be getting 4% interest, she barked back "yes, but I'd have to pay tax on it!"

OK then.

 

Fewer.

 

You forgot to log in as Godfather m8

 

I have no clue, but I believe they are a pretty respectable site and is often used by NBA fans for example.

 

Then I banged her and her page 3 girl sister.

 

Similar experience.
A friend told me her salary has been put up but to do her a favour they had capped her salary at £149,950 to keep her below the £150k tax band. She was very pleased with herself until I told her that 1/ it would only be the income over £150k that was taxed at higher rate and 2/ that the £150k is the taxable income limit and with c£10k personal allowance they could have gone at least £10k higher in any case.

 

Hang on a minute . No one mentioned the 2 year follow up deal .
No one mentioned the age of the player when the 3\5 year deal was
agreed .

 

I would agree that things started going downhill with Mazzarri. One thing that stuck with me was that he never bothered to learn English- he had to communicate via Giraldi, Britos and Behrami. I understand it's difficult to move to another country and learn the language, but from what I've heard he didn't even attempt to learn. That to me showed he didn't really give a toss about this club and the job he'd been given. Plus he didn't get on with Deeney and as we all know, Deeney is 'the man' around these parts.

Gracia and the FA Cup run, as amazing as it was, was a total fluke. Yes we played well in the games and did superbly to come back against Wolves, but imo it papered over the cracks that had been appearing for a few years

 

I still don't think it matters.

 

Really ?.
An extra 2 years image rights\sponsorship\bonuses?
Because 3 year deals are unlikely to be offered to someone in their 20s
For the sake of simplicity let's say the highest tax rate is 40%
40% of 1.2 M over 5 years is 2.4 M
40%of 2M over 3 years is 2.4M
However an ageing player will have guaranteed an extra 2 years of add ons.

 

You think Cathcart has image rights?

 

As a tax deductable ?

 

Touche!

 

If you are 28 or older it makes a lot of sense. You wont get much of a deal at 33 if you area 28 year old looking to play for a lower half Premier League team.

 

Yep - Prodl, and many others have done exactly that - Taken a longer contract and at a lower salary instead of a higher salary offered elsewhere for a shorter contract. The agent gets a % of £6.5 million rather than £6 million, and the Player gets a guaranteed bigger sum of money. Even if the club sells on or terminates the contract. Prodl terminated a contract for the full years money. How many clubs routinely offer five year contracts to players. Why would they do it? In a business where an injury may mean you never get a second contract, it is a powerful negotiating tactic to offer a smaller salary over more years. It provides certainty in a volatile industry. That is worth a lot, particularly in financial and pension planning.

The OP question was they did not understand the 5 year contracts handed out. And my reply said that it is attractive to the club because it smooths out the cash flow.

 

Where do we go from here?

League One by this time next year, probably.

 

How is someone that thick earning £150k?

 

Even before we get into time value of money, your 6m v 6.5m example is nonsensical. It would need to be a far bigger differential to make this even fly as a concept.

 

You'd be 31.

 

To The Emirates on Sunday and beat The Gooners