The AVFC FFP thread

[bannedfromHandV]

1 minute ago, MaVilla said:

that doesnt sound anywhere near the 100-150m a lot of ppl were hoping for?

85m wont go far for a team revamp.

Assuming we don’t generate income through player sales 

[MrBlack]

41 minutes ago, MaVilla said:

that doesnt sound anywhere near the 100-150m a lot of ppl were hoping for?

85m wont go far for a team revamp.

85m  equates to:

A single £400m signing a 5 year contract on 5m a year. 

Or, more realistically:

Four £75m signings, each on a 5 year contract at £6.25m a year.

Give or take.

 

The 85m is not a fixed amount we have to spend. Its an allowable annual loss. 

 

Edit:

In another scenario, that loss would still be enough to realistically allow us to break our record signing 5 times in a row:

40m 5y @ 5m - (total annual loss of 13m)

45m 5y @ 5.2m (total annual loss 13m+14.2m = 27.2m)

50m 5y @ 6m (27.2m+16m=43.2m)

55m 5y @ 6.5m (43.2m+17.5m=60.7m)

80m 5y @ 8.3m (60.7m+24.3m = 85m)

 

We don't know this year's accounts though so the exact figure won't be 85m, but it will be lots and we are in a good place to spend lots of money if the right signings are available and want to come to us. 

The concern would be landing this many new big contracts and not achieving Europe next season would prevent us signing much next year. So I suspect we'll likely make 2 or 3 big signings, at least 1 of which will break our transfer record. 

 

Edited March 1, 2023 by MrBlack

[CVByrne]

2 hours ago, Delphinho123 said:

This.

Can somebody please tell me if we can blow a load of money on players or not? 

We have to estimate this seasons accounts too unfortunately to make the assessment. I think this season accounts are good because of Ings and Chuk sales and loan fees for players gone out. 

So the three years to end of this year's accounts will be plenty of headroom for us. 

[CVByrne]

2 hours ago, Czarnikjak said:

Why wouldn't it?

Only academy, women football, charity costs and stadium/facilities capital expenditure doesn't count.

 

Unless it was agreed to be paid by the owners directly, not by the club.

If club is paying it, it should be listed somewhere in accounts.

It'll probably be owners company and not the club directly as it was part of the club acquisition 

[tomsky_11]

55 minutes ago, MaVilla said:

that doesnt sound anywhere near the 100-150m a lot of ppl were hoping for?

85m wont go far for a team revamp.

What @MrBlack said.

[OutByEaster?]

4 hours ago, MWARLEY2 said:

Accounts are out. We made a pre tax profit of 600k . 

Accounts aren't quite out yet - the club have given their headline figures but we await the actual accounts hitting companies house website.

 

[villa4europe]

46 minutes ago, MrBlack said:

A single £400m signing a 5 year contract on 5m a year.

I give him 5 games before the usual comments start up in the pre match thread...

[blandy]

34 minutes ago, CVByrne said:

It'll probably be owners company and not the club directly as it was part of the club acquisition 

https://www.avfc.co.uk/news/2023/march/01/aston-villa-group-end-of-year-accounts/

Quote

Exceptional administrative expenses included a payment of £10m to Randolph D Lerner following the retaining of Premier League status for the third consecutive season since promotion. This payment was due as per the agreement entered into when Recon Group Ltd bought the Club in 2016 and provided that if Recon Group and its Guarantor – Jian Tong Xia – failed to pay the sum, it would fall to the Club to settle the liability.

 

[Stephen_Evans]

Clearly Lerner was not romantically nourished enough to say, you know what, I screwed that club big time, maybe I don't deserve another £10m for other people's hard work.

[Czarnikjak]

4 hours ago, tomsky_11 said:

Thought crossed my mind but haven't looked into it yet.

The wording of the article would certainly suggest that they talking about £203m cash outflow, which includes addons and installments from previous transfers as well. That puts into perspective claims of some "net spend experts" that we didn't spend more cash than we got for grealish...looks like we forked out another £100m last season.

There's no word about amortisation, but this line looks very encouraging "Wages costs stayed stable at £137m"

Now, I'm hoping that this 400k profit doesn't include £100m we got for grealish if it does....than its not pretty, and our operating loss was £100m  but seeing we only turned over £178.4m i see it highly unlikely we made a profit on such a low turnover without inclusion of player sales into equation...

Edited March 1, 2023 by Czarnikjak

[daggy_333]

11 minutes ago, Czarnikjak said:

The wording of the article would certainly suggest that they talking about £203m cash outflow, which includes addons and installments from previous transfers as well. That puts into perspective claims of some "net spend experts" that we didn't spend more cash than we got for grealish...looks like we forked out another £100m last season.

There's no word about amortisation, but this line looks very encouraging "Wages costs stayed stable at £137m"

Now, I'm hoping that this 400k profit doesn't include £100m we got for grealish if it does....than its not pretty, and our operating loss was £100m  but seeing we only turned over £178.4m i see it highly unlikely we made a profit on such a low turnover without inclusion of player sales into equation...

If we hadn't sold Grealish I'd imagine we wouldn't have signed Ings, Bailey and Buendia.

[Czarnikjak]

4 minutes ago, daggy_333 said:

If we hadn't sold Grealish I'd imagine we wouldn't have signed Ings, Bailey and Buendia.

It's certainly true for Ings, most likely for Bailey, but not for Buendia. We had ffp headroom at that point to sign him.

[villa4europe]

2 minutes ago, Czarnikjak said:

It's certainly true for Ings, most likely for Bailey, but not for Buendia. We had ffp headroom at that point to sign him.

Agree

Buendia, or the player that we thought Buendia would be, is exactly what we needed with grealish, that 5 to 10 yard out ball playing off him bit like Barkley was until he decided to retire

[MaVilla]

May not be entirely correct, but it shows how poor we have been considering our wage outlay.

 

[DevonIsAPlaceOnEarth]

At least that £10m extraordinary payment to Dr Fraud doesn’t count against our FFP.

[CVByrne]

1 hour ago, Czarnikjak said:

The wording of the article would certainly suggest that they talking about £203m cash outflow, which includes addons and installments from previous transfers as well. That puts into perspective claims of some "net spend experts" that we didn't spend more cash than we got for grealish...looks like we forked out another £100m last season.

There's no word about amortisation, but this line looks very encouraging "Wages costs stayed stable at £137m"

Now, I'm hoping that this 400k profit doesn't include £100m we got for grealish if it does....than its not pretty, and our operating loss was £100m  but seeing we only turned over £178.4m i see it highly unlikely we made a profit on such a low turnover without inclusion of player sales into equation...

Carlos, Coutinho were both in the seasons accounts for sure. That's why we signed them early before end of our accounts. 

Ings, Bailey, Buendia, Digne, Carlos, Coutinho, Chambers and maybe Olsen? That still doesn't make the £203m though. Maybe sign on fee for Kamara? Maybe youth players and Loan fees?

 

Edited March 1, 2023 by CVByrne

[tomsky_11]

1 hour ago, Czarnikjak said:

There's no word about amortisation, but this line looks very encouraging "Wages costs stayed stable at £137m"

For sure I was expecting wages to stay stable. Doesn’t have any bearing on the amortisation though which must have increase more than I’d expected.

1 hour ago, Czarnikjak said:

Now, I'm hoping that this 400k profit doesn't include £100m we got for grealish

Zero chance that is the case.

Wouldn’t say our turnover was low either. It was higher than I expected, an only decrease from prior year because prior year was very inflated due to Covid timing impacts.

[tomsky_11]

19 minutes ago, CVByrne said:

Carlos, Coutinho were both in the seasons accounts for sure. That's why we signed them early before end of our accounts. 

Carlos was signed in June after the accounting period in question. Coutinho there may be some impact. But however it’s built up, the £200m doesn’t tell us much on its own regarding ffp.

[sidcow]

1 hour ago, Czarnikjak said:

There's no word about amortisation, but this line looks very encouraging "Wages costs stayed stable at £137m"

I think that just for Lucas Digne. Anyone know what the rest are being paid? 

[paul514]

6 hours ago, MaVilla said:

that doesnt sound anywhere near the 100-150m a lot of ppl were hoping for?

85m wont go far for a team revamp.

it is 85m of 1 year amortisation...... not an 85 million transfer spend., they could quite literally spend 300m easily if the owners wanted to do a cash injection