Transfers, 2024-25 season

[Dr Gloom 24831]

40 minutes ago, ewerk said:

It makes zero difference to PSR how the payments are structured.

why structure it that way then? Is it not about bumping payments into the following financial year or something so there’s more headroom this window?

Edited 6 hours ago by Dr Gloom

[Dr Gloom 24831]

Genuine question. This isn’t the week I’m finally getting the hang of this accountancy lark

[Dr Gloom 24831]

Amortisation wankers 

 

Edited 6 hours ago by Dr Gloom

[Gemmill 53981]

6 minutes ago, Dr Gloom said:

Genuine question. This isn’t the week I’m finally getting the hang of this accountancy lark

 

If we buy him for £50m on a 5 year contract, the PSR effect is £10m per year. 

 

We could structure the payments as £1 today and the rest 5 years today, but it wouldn't matter because amortisation is done on a straight line basis. 

[ewerk 35098]

15 minutes ago, Dr Gloom said:

Genuine question. This isn’t the week I’m finally getting the hang of this accountancy lark

Most likely because of cash flow rather than PSR. Though given the Saudis aren’t short of a pound or two I don’t know why we aren’t offering clubs money up front in order to gain an advantage.

[Dr Gloom 24831]

2 minutes ago, ewerk said:

Most likely because of cash flow rather than PSR. Though given the Saudis aren’t short of a pound or two I don’t know why we aren’t offering clubs money up front in order to gain an advantage.

isn’t that connected to PSR/APT though? The Saudis aren’t allowed to just pump their billions into the club either through the ownership or related parties so delaying the payments means we have more cash to spend this window? 
 

Forgive my rudimentary understanding of all this. I fucking hate this craic tbh

[Gemmill 53981]

Aye we need to operate as a standalone business, so managing cash flow is important. If we're getting cash injections from the Saudis, I guess they would have to be treated as loans, which now attract interest for PSR following the latest rule changes. 

 

They could inject cash as equity but I assume that would dilute the other shareholders. 

 

Also, we struggle to move quickly on transfers anyway, the last thing we want is to layer this on top.

[Ayatollah Hermione 15537]

As was mentioned on here the other day, the stadium is going to be massive from a commercial POV. A huge outlay but, if you do it right, it’ll be making money every day. Which makes the constant delays in the announcement even more frustrating