Im_Spartacus wrote:What many seem to forget, and this cunt himself either forgot or intentionally ignored even though he mentioned it in his article, is that the accounting measure for FFP does not take into account the overall loss of the club. The club have, through their books shown cash purchases of players, hence the huge losses.
There is effectively a seperat accounting measure for the player transfers whereby regardless of the deal is structured, the club is able to spread that cost over the length of the players contract. Thus, 200m spnt on players since january 2010 will at worst go on the books at 50m a year. The club have and will continue to increase income to match this - last year alone the additional CL income took away a huge chunk of that, even before new sponsorship deals come into it,
Additionally, A reason why the Adebayor deal made so much sense, is that the transfer fee shows as income for FFP, wheras the subsidised wages do not, as he was signed in summer 2009. Ultimately, the same is true of De Jong, Johnson, Bridge, Santa Cruz, etc etc.
Effectively, under amortisation, if we keep a player 3 years before moving him on, the transfer fee received will almost always show a profit in the year they are sold. Bearing in mind we are not signing short term measures any more, and the team is made up of top stars who most clubs would give their right arm for, in the year they are sold, even at a reduced transfer fee, they will show as a huge profit for the club for the purposes of FFP. On the other hand, if the player is good enough to stay beyond the end of his current contract, we have effectively signed a player for free.
Given the age of many of the squad, we can expect that once the transfer fees of Aguero, Nasri, Dzeko, Balotelli, Milner etc have been absorbed via amortisation, when added to the likes of Hart, Kompany, Richards who on an FFP basis cost us nothing, in the next two years we will have a core squad aged 25-26 who are of no significance for FFP calculations. the only things that will, will be a replacement for Yaya, Lescott, and the odd other signing which may be big transfer fees, but much more rare as the core squad will be being topped up as players leave.
Im not overly concerned at all
I am not sure what is more shocking, how well you broke this down or the fact it actually made sense to me (though I am a bit baised). Well worded Sparty.
I've come here to chew bubblegum and kick ass... and I am all out of bubblegum.