Czarnikjak

They don't affect us at all atm. These are UEFA rules, they don't apply to domestic competitions and we are not in Europe.

No, we already submitted our accounts for Covid affected seasons and can't retrospectively change them now. If I recall our total losses due to covid were accounted as less than £100m Everton are taking a piss.

So normally if you sign a player for £40m on 4 year contract, for accounting purposes you amortise this purchase evenly, £10m each year for 4 years (this goes down as a cost for FFP purposes). I think we are front loading the amortisation (ie £15m in year one, and thus less in coming years). This is to maximise our FFP allowed losses now and leave more wiggle room in the future from FFP standpoint. These are muddy accounting waters, but I fully trust Purslow knows what he is doing. Derby got done for doing the exact opposite, accounting less amortisation upfront to be able to spent more at the time when they were pushing for promotion.

Thanks, good video. Dave is very knowledgeable bloke. I agree with him that something is iffy with our amortisation. As I suggested in my posts before we appear to be not using linear amortisation.

With these financial restrictions, top 10. With an occasional run at top 6-7 every few seasons if everything goes our way and one of the big 6 clubs shoots itself in the foot. The revenue gap between us and top 6 is just too big. Unfortunately thanks to Lerner we wasted 10 years from 2010 onwards when the new financial structure of football was shaped and teams like Spurs managed to get on the gravy train and massively increase their revenues. We moved backwards. It will be almost impossible now to bridge that gap. It will be interesting to see how Newcastle try to get around it and get amongst them. They have much better chances than us thanks to almost unlimited resources and political clout of a whole state behind them.

Indeed, it doesn't add up. I looked through the published accounts to see if we took Intangible Asset value impairment hit (Everton for example wrote of £30m of their playing squad value due to Covid and thus reduced their amortisation), but there's no sign of it. I can only think of non linear, front loaded amortisation to explain it. That would explain why our amortisation jumped from £20m to £71m before. £51m amortisation increase after about £130m purchases in summer 2019 looks too high

New contracts and late transfer window obviously helps as you suggesting, but definetly it would not be enough to reduce our amortisation charge despite £100m of further incomings in the summer of 2020. What could possibly explain it is if we "front loaded" amortisation charges for our Summer 2019 transfers, instead of normal linear amortisation. But these are murky accounting waters, the opposite to what Derby did actually. Wouldn't put it past Purslow though self proclaimed Fernando Torres of football finance.

Sure, I'm just hoping it was an informed decision, not based on Purslows emotional attachment to Gerrard from the times he knew him as a player at Liverpool. Jury on Gerrard is still out, and Purslow will live or die on this decision as he supports Gerrard with significant funds in transfer windows.

We will have significant amount of FFP leeway this summer. Mainly due to Grealish sale, 2018 season dropping off from the calculus and expected sale of fringe players ( Trez, Elghazi, Davis, Wesley and others). How much of that we will want commit this summer alone is difficult to predict. Coutinhos wages could be problematic, also from broader team wage structure point of view. Our highest earners are on £120k now, paying Coutinho over £200k as he will surely demand could be unpalatable.

As expected we went close to the limit, but didn't exceed it. If you read the whole twitter thread by Swiss Ramble our amortisation figures are difficult to explain. It dropped from £70m to £54m for last season, despite signing almost £100m worth of players.

If it was a gamble, it's not smart by definition. Let's hope it was more of a informed decision not a gamble. Jury on Gerrard is still out, he needs to prove himself next season when it matters. Rest of this season is just a preparation.

I am waiting for full set of our accounts for last season to be published (should be next month) before making any predictions. Too many unknowns at the moment

Indeed, In ideal world it would be Elghazi £10m, Trez £5m, Wes £5m, keinan £5m, so at least £25m generated from fringe players

Our full accounts for last season are due to be released within next month or two. That should give us good reference point to estimate current ffp and wage situation.

Not a pretty reading, less than half of what Leicester are getting...we will never catch-up the big 6.,.that ship has sailed...bridges drawned etc

How did we end up with FFP thread being hijacked by vaccination discussion? Can this be discussed somewhere else and leave this thread to FFP.

Not quite true... NS was born into richest family in Egypt it doesn't mean he is a bad business man though...

Club is only worth as much as someone is willing to pay for it. There is no golden formula.

It gets even more complicated. Salary cap is almost certain to replace the existing FFP rules within next few years. We need to watch our wages closely. We already running over 70% wages to revenue ratio. It puts us in difficult situation unless we manage to substantially increase our revenue, which is gonna be difficult without getting to Europe.

Too much hype around him from a very young age. It cannot be helping.

Sure, but I don't think any insurer would agree to pay him up, technically he is still capable of kicking the ball, and played some minutes, even in Premier League, this season.

There's no chance in hell he retires before his contract with us is up. Why would he give up £2-3m per year?

10mil? Currently we will be lucky if anybody wanted to take him for free, just so we don't have to pay his wages.

Not in the squad today against City. He was on the bench in previous matches, nowhere to be found now. Either injured or they quickly realised he is not up to scratch anymore.

I don't remember this competition being played last year. U18 premier league cup? Number of youth cups seems to be growing.