My limited understanding is that player contracts are amortised over the life of the deal with respect to FFP implications. I had also thought that releasing a player early caused the remaining amounts for future years to be accelerated into the current year - as they have in effect been written off). So if a player (hypothetically) signed a 5-year deal for 18.2 million, with an 18.4 million signing fee, the club would take approximately a 7.32 million per year cot. If such a player was terminated with say, 1.5 years to go, the club would take a 14.64 million hit in that year. Assuming the above is correct, once a player is in the last year of their deal, the ability of a club to release them would become greater I should think as there would be no accelerated amortisation impact on FFP. Additionally, once a player reaches this from an accounting standpoint, if the player is sold, any fee over ~3.3 million nets out positively in terms of FFP (as the wages are gone and all you'd be covering is the amortisation). Is this (entirely hypothetical) scenario accurate from an accounting/FFP perspective?
None of it's gone... it's just a question of what accounting year that it falls in. We as fans tend to think of these things on a cash basis, which I don't think is right (but am asking). I think that terminating a player early brings all owed monies forward, which means that you take a multi-year hit in one year, which could put you afoul of FFP regulations. Once a player is in his last contract year, as far as FFP goes - I THINK - you can toss him whenever you like. You still need to find the cash to pay him, but you can cover that from loans etc.. Loans won't get you round FFP though, you need hard revenue. Of course, it's still better to find someone to take them.
I do know Derby tried to circumvent the rules and report player values in a different way to what the rules allow, so there may be more information on it around that. I know it’s not the point you’re making, but I do know what you mean in that if we buy a player for £20m and sell him for £10m a few years later, we as fans see that as a loss but from an actual accounting point of view it wouldn’t be. Obviously as you say it’s still better to get something/as much as you can.
Yes, the Derby arbitration judgment touches on a lot of the issues around amortisation, FFP etc. https://www.efl.com/contentassets/8...10b8/efl-v-derby-county---appeal-decision.pdf There’s some worked examples in there, though not sure they directly address @Rookery Refugee’s query.
If what I'm saying is true, then cutting loose of players on big contracts last year was quite simply impossible, as the FFP implications would have been dire, if not catastrophic. This year, after at the latest, August 9th, then (hypothetically), the pain of trimming some dead wood is lessened. So the follow-on is, exactly when do some of our bigger contracts end? If "Capology.com" can be believed, then the following is interesting: This would indicate to me that: 1) Anything that we can get for Gray will be taken - and he might be cut outright if we can get some new options in. 2) Deeney is gone unless he takes a massive pay cut - and why would he bother? Let the club have Troy Deeney day, then go on and be a pundit. 3) One of Chalobah or Cleverley may be moved if an opportunity presents itself, with Gosling being the squad cover and younger players (i.e. Louza, TDB, etc.) getting minutes. 4) Kabasele - if he's willing to re-sign for similar wages and a reasonable fee, he's probably still here, otherwise, adios compadre. 5) Femenia. A priority to re-sign 6) Success. Keeping him costs us 1.4 million + another ~2.5 million in amortisation, so roughly 4 million. Cutting him would cost us roughly 12 million. He's not going anywhere other than a loan. Other names of interest: Quina is up in 2022, so unless he sets the world on fire in training and is offered a new deal, he's probably sold. TDB has several years left and he's low cost, he'll stay. Penaranda has 2 more years and allegedly a 9-10 million signing fee, so unless the club wants to eat an additional 3+ million this year, he either makes the club or gets loaned to another side in purgatory somewhere.
Surely we’re not paying Rob Elliot 5x more than Bachmann? Capology site is interesting though. Thanks for sharing.
Sarr on that much ? Not sure but guess he is the biggest asset . Presume Cleverley was on more than that before his new extended contracts. Seems/ of the newer players earn more than other squad members - wonder how that went down if the likes of Hughes and Kiko/Sema know ?
Why would employee salaries be in the public domain? If any of this was true then someone in HR would be fired for leaking it.
Agents and players themselves may leak. But agree nobody will know the wage of every player on a squad. Transfer stories tend to be though “transfer fee undisclosed and wage believed to be 80k per week”. Could be nonsense estimates admittedly.
I assume that table is wrong, if we were paying Gray more than anyone else and success the same as Hughes , there would be a lot of pissed of players in the club, unless that explains the general attitude problem with the players and the manager promised to sort it out this summer
Never thought about FFP in that way , you are right when you sell an asset you write off (or add back) to the I&E the profit or loss , so if You sold Gray for less than he was worth (purchase price less what’s been depreciated) that would effect you profit. however wouldn’t think that would make much difference if we purchased Gray for 18m on a five year contract (think he has been with us for 4 years) , would only have 4.5m left as his wages are 3.3m , would only need to sell for 1.2m to be better off - I think
Yes, now. Selling him cheaply or releasing him last year could have been a disaster WRT to FFP. Would have been a massive hit in a reduced revenue year.
