Re all these mentions of FFP: The structural part of the pitch work will not hit the Profit&Loss submission. Only the consumables I.e the turf which might be replaced every summer. So 100K? Re the signing of players only loan fees and player salaries hit the FFP profit & loss. Any transfer fee goes into the balance sheet as an intangible asset. The annual write off over the life of the contract is then counted in the FFP calculations. Basically CAFC has another £3m of salaries and amortised transfer fees it could pay and still be compliant. I've done a review of the championship which is being QA 'd by someone...basically there are a fair few clubs who have nil capacity for additional spend! Given that Peeters announced that he is looking for four more players and Duchatelet is loaded it is possible we might see 4 x £1M+ players arriving on permanent or loan deals. Whether the fee is £1.5 or £2.5m or somewhere inbetween I can't see why M. Duchatelet is going to piss about with bargain basement last minute signings. The teamsheets vs Liege (away) and Brentford (away) are going to be interesting
Welcome Igor, really excited about this signing but it is another puzzle in the RD system, as i did not think we would be penny pinching but i also did not expect to see us pay 2 million plus for a single player.
Bob Peeters said his target is 'to do better than last season then reach the Prem in a couple of years possibly'.If the transfer fee quoted for Igor is £2.4 million ive got a feeling Roland would want success a bit quicker than that and possibly Peeters was being a bit conservative when answering that question.
Welcome at last Igor; genuinely exciting after the reviews from Denmark. Now let's assemble a team / squad that gives him a chance to prove himself. No guarantees of course but we'd probably be quite worried if another club of our current standing had signed him.
£2.4 million and a 5 year contract sure puts a lot of pressure on the guy to succeed especially considering the Danish League is not quite the same standard as the Championship (IMHO)! Fair play to RD though for putting his hands in his pocket and coming up with the dosh!
who cares where he's played, he just looks like a bundle of trouble for opposing defences to me...aaaaand in the last minute of time added on, up pops igor the wonderful's massive ears, glancing in the winner! you gotta stay hopeful, we are charlton!
An important part of the rules relates to the way that player transfers have to be accounted for. Although a club will often pay a transfer fee to another club immediately, from a Break Even perspective the financial cost of acquiring a player has to be written-off over the duration of the contract. We need an example: let's assume Torres was signed for £50m on a 5 year contract and that Chelsea paid Liverpool £50m via an immediate bank transfer. As far as the Profit & Loss section of accounts is concerned (and the Break Even test), Torres' purchase price would be depreciated (or amortised) evenly over the 5 years of the contract. So, during the first 12 months, only £10m would be incurred as a cost in the accounts and Torres would end the year with a 'book value' of £40m. After 5 years, Torres' contract would have ended and he would be free to leave the club (he would also have a book value of zero). If the club sells Torres part way-through the contract, the club the difference between the amount they receive for the player and the book value at the date of the sale is accounted for immediately in the accounts (and the Break Even test) as a 'loss/profit on player trading'. This is important as it explains how a club can sell a player for below the original purchase price and still record a profit in the accounts during the year of sale. If Liverpool sell Andy Carroll for anything above £18m in the summer, they will record the difference as a profit on player sales during 2013/14. If we assume that Falcao comes to Chelsea for £50m on a 5 year deal in the summer, the club's P&L account for the year will only include £10m as an expense (under the heading 'amortisation'). The club will also, of course, have to include the player wages as an expense in the Profit & Loss account. If you want to know more about 'amortisation', see the video at the foot of this page.
...re stewart, i hear from many that he scored the occasional cracker, but was inconsistent overall, and a poor crosser? we must find a consistent crosser, who unlike danny green, turns up for the full game...(again, usual caveat, i'm only an online watcher.
@razil that's right which is why CAFC could loan 2 more and buy 2 more £1M+ players and still remain within the limits for the next two seasons. Especially if crowds increase when we start winning a few more home games. About time all those undecided fans started buying their season tickets!
Comments
http://www.cafc.co.uk/news/article/20140624-igor-vetokele-signs-1669191.aspx
That bloody scarf is in there again.
Excellent news
Go on Igor get us some goals.
I can't remember if this picture has been linked here
The structural part of the pitch work will not hit the Profit&Loss submission. Only the consumables I.e the turf which might be replaced every summer. So 100K?
Re the signing of players only loan fees and player salaries hit the FFP profit & loss. Any transfer fee goes into the balance sheet as an intangible asset. The annual write off over the life of the contract is then counted in the FFP calculations.
Basically CAFC has another £3m of salaries and amortised transfer fees it could pay and still be compliant. I've done a review of the championship which is being QA 'd by someone...basically there are a fair few clubs who have nil capacity for additional spend!
Given that Peeters announced that he is looking for four more players and Duchatelet is loaded it is possible we might see 4 x £1M+ players arriving on permanent or loan deals. Whether the fee is £1.5 or £2.5m or somewhere inbetween I can't see why M. Duchatelet is going to piss about with bargain basement last minute signings.
The teamsheets vs Liege (away) and Brentford (away) are going to be interesting
Can't wait to see him in a Charlton shirt.
http://www.financialfairplay.co.uk/financial-fair-play-explained.php
3. Transfer Fees
An important part of the rules relates to the way that player transfers have to be accounted for. Although a club will often pay a transfer fee to another club immediately, from a Break Even perspective the financial cost of acquiring a player has to be written-off over the duration of the contract. We need an example: let's assume Torres was signed for £50m on a 5 year contract and that Chelsea paid Liverpool £50m via an immediate bank transfer. As far as the Profit & Loss section of accounts is concerned (and the Break Even test), Torres' purchase price would be depreciated (or amortised) evenly over the 5 years of the contract. So, during the first 12 months, only £10m would be incurred as a cost in the accounts and Torres would end the year with a 'book value' of £40m. After 5 years, Torres' contract would have ended and he would be free to leave the club (he would also have a book value of zero). If the club sells Torres part way-through the contract, the club the difference between the amount they receive for the player and the book value at the date of the sale is accounted for immediately in the accounts (and the Break Even test) as a 'loss/profit on player trading'. This is important as it explains how a club can sell a player for below the original purchase price and still record a profit in the accounts during the year of sale. If Liverpool sell Andy Carroll for anything above £18m in the summer, they will record the difference as a profit on player sales during 2013/14. If we assume that Falcao comes to Chelsea for £50m on a 5 year deal in the summer, the club's P&L account for the year will only include £10m as an expense (under the heading 'amortisation'). The club will also, of course, have to include the player wages as an expense in the Profit & Loss account. If you want to know more about 'amortisation', see the video at the foot of this page.
:---)
Buyens and Igor actually seem exciting signings for once. Diego back and I may start to get a bit giddy.