Joelinton

[The Fish 8989]

32 minutes ago, Monkeys Fist said:

Are we talking about Bruno or BUJ7 here? 
 

I do love Bruno and will be gutted if/when he goes, but not as much as Joelinton, simply because I’m a sucker for redemption stories, and they rarely come better than his in football. 
 

To go from ridicule to reverence in the space of a season is unreal, and his conduct throughout it all makes it even better. 
 

Love the bloke. 

The good news on that front is that Joelinton is underrated outside of Newcastle. We know he's now worth more than the £40m we paid for him, but others haven't caught up to that fact yet. If we can get him to agree this contract extension we've got a dominant central midfielder, who is loved by the fans, valued by the manager and deified by a man and his son in Cheshire. 

 

If he signs the deal can we amortise his cost over the length of the contract? Does it give us a little more wriggle room? @ewerk

[ewerk 26351]

Fuck knows. He signed a six year contract in 2019 which expires next year so was costing us roughly £6.5m a year on the books so doesn't make much difference in the long run.

[Renton 17783]

How do you amortise wage costs like? So-called accountants. 

[ewerk 26351]

You don't. They're an expense.

[Alex 30414]

1 hour ago, Howmanheyman said:

 

Danny Murphy reckons he'll NEVER be world class. He said it on talksport apparently, @wykikitoon must be slipping missing it? 

I’d love to see the stats on how much ground he usually covered compared to Bruno

Edited March 5 by Alex

[Alex 30414]

50 minutes ago, The Fish said:

 and deified by a man and his son in Cheshire. 

I’d probably go for beatification at this point. Wait until he wins a trophy with us  

[Gemmill 34469]

32 minutes ago, Renton said:

How do you amortise wage costs like? So-called accountants. 

 

[The Fish 8989]

53 minutes ago, Renton said:

How do you amortise wage costs like? So-called accountants. 

Not his wage, his fee. 

 

£40m in 2019, £6.5m a year, add another 3 years brings it down to £4.4m a year, right?

 

Couldn't remember how long his deal was so googled

 

 

Edited March 5 by The Fish

[Howay 12459]

20 minutes ago, The Fish said:

Not his wage, his fee. 

 

£40m in 2019, £6.5m a year, add another 3 years brings it down to £4.4m a year, right?

 

Couldn't remember how long his deal was so googled

 

 

He pretty much has no book value by this point, but yeah any that’s left would be amortized over the length of the new deal. It’s part of the reason Chelsea started giving contract extensions to players who had just signed like Enzo Fernandes, iirc they added a year to his deal shortly after he signed which would have lowered his yearly cost. 

[Renton 17783]

16 minutes ago, ewerk said:

You don't. They're an expense.

 

49 minutes ago, The Fish said:

Not his wage, his fee. 

 

£40m in 2019, £6.5m a year, add another 3 years brings it down to £4.4m a year, right?

 

Couldn't remember how long his deal was so googled

 

 

 

Well aye, why are we paying a fee for our own player? His previous signing on fee will already be amortised surely. Anyway, I'll leave it to the bean counter nerds. 

 

[The Fish 8989]

35 minutes ago, Renton said:

 

 

Well aye, why are we paying a fee for our own player? His previous signing on fee will already be amortised surely. Anyway, I'll leave it to the bean counter nerds. 

 

 

 

Team buys player X for £80m and gives them a 4 year contract. So that initial fee is spread over the length of the 4yr contract, at £20m a year. That £20m comes off each years accounts and as such is marked against their FFP allowance to fall within £105m over 3yrs. Say, for this example it takes them to their limit.

 

1 year in, the remaining amount of that initial fee to be amortised is £60m (£20m a year), but then that contract is extended by 3 years. So the remaining amount to be spread over 6yrs is £60m, or £10m a year and halving the FFP burden of that transfer. Leaving £10m free in their FFP accounts

 

Which would allow the club to buy a £40m player on a 4yr deal and stay within FFP boundaries.

 

 

[Renton 17783]

1 minute ago, The Fish said:

 

 

Team buys player X for £80m and gives them a 4 year contract. So that initial fee is spread over the length of the 4yr contract, at £20m a year. That £20m comes off each years accounts and as such is marked against their FFP allowance to fall within £105m over 3yrs. Say, for this example it takes them to their limit.

 

1 year in, the remaining amount of that initial fee to be amortised is £60m (£20m a year), but then that contract is extended by 3 years. So the remaining amount to be spread over 6yrs is £60m, or £10m a year and halving the FFP burden of that transfer. Leaving £10m free in their FFP accounts

 

Which would allow the club to buy a £40m player on a 4yr deal and stay within FFP boundaries.

 

 

[The Fish 8989]

4 minutes ago, Renton said:

Long story short, you pay for a transfer fee in instalments across the length of their contract. Extend the length of contract, you reduce the amount you account for each time.

Edited March 5 by The Fish

[ewerk 26351]

5 minutes ago, The Fish said:

 

 

Team buys player X for £80m and gives them a 4 year contract. So that initial fee is spread over the length of the 4yr contract, at £20m a year. That £20m comes off each years accounts and as such is marked against their FFP allowance to fall within £105m over 3yrs. Say, for this example it takes them to their limit.

 

1 year in, the remaining amount of that initial fee to be amortised is £60m (£20m a year), but then that contract is extended by 3 years. So the remaining amount to be spread over 6yrs is £60m, or £10m a year and halving the FFP burden of that transfer. Leaving £10m free in their FFP accounts

 

Which would allow the club to buy a £40m player on a 4yr deal and stay within FFP boundaries.

 

 

The flip side is that any player extending their contract is likely to want a signing on bonus and increased wages which adds to costs.

[aimaad22 3472]

Now only if there was an ICAEW member around to demistfy all this

[The Fish 8989]

4 minutes ago, ewerk said:

The flip side is that any player extending their contract is likely to want a signing on bonus and increased wages which adds to costs.

 

Sure, but not as much as the cost of the fee, right?

[aimaad22 3472]

22 minutes ago, ewerk said:

The flip side is that any player extending their contract is likely to want a signing on bonus and increased wages which adds to costs.

 

The recently applied 5 year limit for amortisation would apply to extensions as well right? So if a 5 year contract was down to 3 years but you gave the player a 2 year extension, it wouldn't be amortized over 5 years again?

Edited March 5 by aimaad22

[Gemmill 34469]

7 minutes ago, aimaad22 said:

Now only if there was an ICAEW member around to demistfy all this

 

[Gemmill 34469]

One of the all time great gifs.

 

[ewerk 26351]

31 minutes ago, The Fish said:

 

Sure, but not as much as the cost of the fee, right?

Depends. If Joelinton is looking an increase from £45k to £110k then that’s over £3m a season.

[Toonpack 6866]

ICAEW ???

 

Incredibly Conceited Accountants Excel Wankathon

 

[Anorthernsoul 1221]

Great to see Big Joe signed off for another 3 years. A big player in our midfield, which has been very much highlighted since his injury. I think Eddie's comments about getting it all sorted ASAP tells you how important he is for us and our immediate future!

[ewerk 26351]

 

14 hours ago, Gemmill said:

 

 

[MrRaspberryJam 201]

The big bastard is staying.

[Dr Gloom 19825]

1 hour ago, MrRaspberryJam said:

The big bastard is staying.