Football Finances by Dummies. 10:20 - May 18 with 3129 views | omarjack | Warning:This thread contains Mathematics. Let me start with correcting a misconception that keeps circulating around this forum. That our wage bill for last year was 99 m. But many seem to disregard that our club release financial records for 14 MONTHS at a time. Unlike most other clubs that release it every 12 MONTHS. Therefore,our wage bill is estimated to be about 85 m last year (including some serious f*ck ups like paying compensations for 2 managers and hiring a 3rd) Now for the main point of the thread..Amortisation..Blimey but what's that? I like to teach with examples. Not words.. It was reported that we paid 12 m to buy Bony back (some mugs we are)..and it's reported that he's earning a salary worth about 5 m/year (mugs again)..over 3 years. Bony's salary over 3 years=15 m add the fee to that we get 27 m total investment in him 27/3 (number of years of contract)=9 m (The recorded figure we've spent in bringing Bony in) so it's not 12 m..it's 9 m. About the same concept could be considered for sales as well. Now many of you thought that Sigurosson was sold for about 40 m to Everton..True. But on the financial sheet it won't recorded in that way. Then how do they record it? Siggy had 2 years left on his contract with us before we sold him. he was reportedly on a 3.5 m/year. (we owed him 7 m in a way,but since we sold him we obviously don't owe him this figure anymore) so..40 m + 7 m=47 m 47/2 (years of contract)=23.5 m (The actual amount of money we've earned from selling Gylfi) so it's 23.5 m...not 40 m. Last July we've sold: (I've already done serious calculations here which I will spare you the details of) Siggy:23.5 m Llorente:17 m TOTAL:40.5 m we bought since then the following mugs: Bony:9 m (as I already explained) Clucas:about 6.5 m A.Ayew:10 m (he'll cost us 35 m over 3.5 years unless we sell him of course) Renato Sanches:about 8 m over 1 year King on loan:probably only half of his wages so about 1 m TOTAL:34.5 m net profit of sales this year so far: + 6 m Now if we sell Mawson for 20 m (assuming his wages are 1/year with 2 years left in his contract) we'll raise about 11 m in his sale for example. Letting Bony for free alone will save us 5 m in Amortisation. selling Baston for 2 m will raise us about 2.5 m and so on and so on.. Ok..I'll stop blabbering for now. [Post edited 18 May 2018 22:30]
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Football Finances for Dummies. on 10:23 - May 18 with 2676 views | Dr_Winston | You're correcting misconceptions using reported figures rather than actual ones? | |
| Pain or damage don't end the world. Or despair, or f*cking beatings. The world ends when you're dead. Until then, you got more punishment in store. Stand it like a man... and give some back. |
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Football Finances for Dummies. on 10:27 - May 18 with 2655 views | omarjack |
Football Finances for Dummies. on 10:23 - May 18 by Dr_Winston | You're correcting misconceptions using reported figures rather than actual ones? |
These were more like examples. The misconception was assuming that our wage bill is much bigger than other PL clubs around us which is not true. For example West Ham's wage bill in official figures was 95 m but over 12 MONTHS Everton official wages were at 104 m over a year period (our wages are not as big as Everton ffs) Stoke wages are officially 85 m (so just like ours basically) As for the Amortisation stuff..just examples of doing football accounting,I never claimed these are official figures (but probably close enough) [Post edited 18 May 2018 10:28]
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Football Finances for Dummies. on 10:28 - May 18 with 2653 views | monmouth | That’s not going to end well. I’d delete it or rethink it if I were you. It has a few...well...holes in it. The good thing about advice mind you, is that you can ignore it. | |
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Football Finances for Dummies. on 11:09 - May 18 with 2564 views | 3swan | "Let me start with correcting a misconception that keeps circulating around this forum. That our wage bill for last year was 99 m. But many seem to disregard that our club release financial records for 14 MONTHS at a time. Unlike most other clubs that release it every 12 MONTHS. " The club only changed to 14 months for one year only. Swansea City has reported a loss of £14.6m for the financial year ending July 31, 2016. However, as in previous years, the club is currently on course to record a post-£10m profit for the current financial year (to July 31, 2017) to counter those losses and maintain the club's long-standing sound financial philosophy. Turnover for the year was £97.2m compared with £103.9m for the longer 14-month period to July 31, 2015. https://www.swanseacity.com/news/swans-confirm-latest-accounts | | | |
Football Finances for Dummies. on 11:14 - May 18 with 2532 views | swan65split | its going to be a 15 pager. | | | |
Football Finances for Dummies. on 11:20 - May 18 with 2525 views | Banosswan |
Football Finances for Dummies. on 11:14 - May 18 by swan65split | its going to be a 15 pager. |
What time is it in Denmark? | |
| Ever since my son was... never conceived, because I've never had consensual sex without money involved... I've always kind of looked at you as... a thing, that I could live next to... in accordance with state laws. | Poll: | How do you like your steak? |
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Football Finances for Dummies. on 11:32 - May 18 with 2478 views | Highjack | This helped me with my insomnia, thanks. | |
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Football Finances for Dummies. on 11:48 - May 18 with 2429 views | londonlisa2001 | I'd change the title of the thread to 'Football Finances by Dummies' if I were you. There's barely a sentence which is correct... [Post edited 18 May 2018 11:50]
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Football Finances for Dummies. on 11:54 - May 18 with 2400 views | jack247 | Could you please explain how Bony earns £5m a year for 3 years on a 2 year contract? | | | |
Football Finances for Dummies. on 12:01 - May 18 with 2364 views | WarwickHunt |
Football Finances for Dummies. on 11:54 - May 18 by jack247 | Could you please explain how Bony earns £5m a year for 3 years on a 2 year contract? |
Jenkins signed it off. He loves giving away £5m of the club's money, it's become a habit. | | | |
Football Finances for Dummies. on 12:10 - May 18 with 2330 views | jack247 |
Football Finances for Dummies. on 11:20 - May 18 by Banosswan | What time is it in Denmark? |
There are a lot of ‘new’ usernames floating around all of a sudden. No need for a sweepstake on this one then | | | |
Football Finances for Dummies. on 13:20 - May 18 with 2198 views | omarjack |
Football Finances for Dummies. on 11:54 - May 18 by jack247 | Could you please explain how Bony earns £5m a year for 3 years on a 2 year contract? |
He's already spent one year of the contract with us..and 2 years left now. | |
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Football Finances for Dummies. on 13:24 - May 18 with 2172 views | wobbly | Oh dear, Omar. I mean, also hilarious. But oh dear. | | | |
Football Finances for Dummies. on 13:26 - May 18 with 2162 views | LeonWasGod | Huw, is that you? | | | |
Football Finances for Dummies. on 13:27 - May 18 with 2158 views | omarjack |
Football Finances for Dummies. on 11:48 - May 18 by londonlisa2001 | I'd change the title of the thread to 'Football Finances by Dummies' if I were you. There's barely a sentence which is correct... [Post edited 18 May 2018 11:50]
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LOL I followed your advice dear Lisa.. | |
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Football Finances for Dummies. on 13:38 - May 18 with 2114 views | jack247 |
Football Finances for Dummies. on 13:20 - May 18 by omarjack | He's already spent one year of the contract with us..and 2 years left now. |
He’s one year into a two year contract | | | |
Football Finances BY Dummies. on 16:41 - May 18 with 1955 views | Tom1912 | Is this a serious post? Every single thing you said is wrong pretty much. | | | |
Football Finances BY Dummies. on 16:45 - May 18 with 1946 views | omarjack | lol Omar you utter bellend..you moron etc etc..I got it.. Can please someone enlighten me about how do clubs record their player registrations then? after all I'm so ignorant you know.. | |
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Football Finances BY Dummies. on 17:20 - May 18 with 1898 views | Shaky |
Football Finances BY Dummies. on 16:45 - May 18 by omarjack | lol Omar you utter bellend..you moron etc etc..I got it.. Can please someone enlighten me about how do clubs record their player registrations then? after all I'm so ignorant you know.. |
Aw shucks, and here I was about to congratulate you on great art! To you question, when you buy a player it has no impact on the profit and loss account. The purchase price is recorded on the balance sheet as an asset of the club. If the player contract is over 3 years, each year a third of the purchase price is then recorded as amortisation - a cost - on the profit and loss account, with the asset value on the balance sheet reduced accordingly The salary is recorded separately as wages + national insurance etc. At the end of the 3rd year the balance sheet value has then been reduced to nil with the entire initial purchase price written off as amortisation. Reflecting his value to the club, without a new contract in place. | |
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Football Finances for Dummies. on 17:29 - May 18 with 1877 views | londonlisa2001 |
Football Finances for Dummies. on 13:27 - May 18 by omarjack | LOL I followed your advice dear Lisa.. |
Good man | | | |
Football Finances BY Dummies. on 20:02 - May 18 with 1725 views | Ambergambler | You're a brave man, Omar. With all the clever sods on this forum you were just asking to be shot down in flames! | | | |
Football Finances BY Dummies. on 20:11 - May 18 with 1694 views | Jack11 | My favourite bit - Omar - “I like to teach with examples, not words.” Follows that statement with hundreds of words. | | | |
Football Finances BY Dummies. on 21:14 - May 18 with 1614 views | Elmo | Bit like the Trust Update thread. Whats the Exec Summary Omar ? Thanks | | | |
Football Finances BY Dummies. on 21:17 - May 18 with 1606 views | Bloodyhills |
Football Finances BY Dummies. on 20:11 - May 18 by Jack11 | My favourite bit - Omar - “I like to teach with examples, not words.” Follows that statement with hundreds of words. |
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