Liverpool bid £35 million+ for Carroll

[ChezGiven 0]

Call me cynical but having the majority paid up would suit Ashley if he plans to be fucking off soon - he'll take the money and run. If it's paid in installments it'd still be coming in after he'd gone.

 

 

Which would be reflected in the balance sheet and thus the purchase price, net effect = nowt either way.

 

Club's in private ownership and we deal in 'undisclosed' transfer fees.

 

Irrelevant. Toonpack is right.

[OTF 7496]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

[shackbleep 0]

Call me cynical but having the majority paid up would suit Ashley if he plans to be fucking off soon - he'll take the money and run. If it's paid in installments it'd still be coming in after he'd gone.

 

 

Which would be reflected in the balance sheet and thus the purchase price, net effect = nowt either way.

 

Club's in private ownership and we deal in 'undisclosed' transfer fees.

 

Irrelevant. Toonpack is right.

 

I'm still not convinced this money won't go the same way the Milner cash did.

[shackbleep 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

[ChezGiven 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

[ChezGiven 0]

Call me cynical but having the majority paid up would suit Ashley if he plans to be fucking off soon - he'll take the money and run. If it's paid in installments it'd still be coming in after he'd gone.

 

 

Which would be reflected in the balance sheet and thus the purchase price, net effect = nowt either way.

 

Club's in private ownership and we deal in 'undisclosed' transfer fees.

 

Irrelevant. Toonpack is right.

 

I'm still not convinced this money won't go the same way the Milner cash did.

 

More than likely. Doesnt change the basic fact that the only difference between £30m now and it spread over the next few seasons for the valuation of the club is the discount rate. Which works in favour of having the money earlier but thats it.

[trophyshy 7084]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

Chez would you please explain amortisation to me? In thicko terms?

[ewerk 31225]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

 

Is amortisation tax deductible though? Obviously with traditional fixed assets there will be certain capital allowances, I'm not sure how it works with footballers. Can major companies amortise the contracts of their key personnel for tax purposes?

Edited February 18, 2011 by ewerk

[ChezGiven 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

 

Is amortisation tax deductible though? Obviously with traditional fixed assets there will be certain capital allowances, I'm not sure how it works with footballers. Can major companies amortise the contracts of their key personnel for tax purposes?

Its a loss in asset value which is part of the profit and loss account. The more asset values are amortised, the more paper loss the club has, the less tax it pays.

[ChezGiven 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

Chez would you please explain amortisation to me? In thicko terms?

Liverpool have spent £35m on Carroll so what does that mean? They have lost cash (£30m up front) but gained an asset worth £35m. That asset is part of the valuation of the club's accounts. As the player has a fixed term contract (5 years), each year the asset value falls by £7m. At the end of the contract the player is worth £0.

[Toonpack 9978]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

Chez would you please explain amortisation to me? In thicko terms?

 

From that link I have posted a few times, but no-one reads:

 

"The concept of amortisation confuses many people, but it is simply how accountants handle player transfers. Instead of booking 100% of the player’s transfer price as a cost in the year of purchase, accountants treat players as assets, so the cost is capitalised and written-down (amortised) over the length of his contract. At the end of the contract, the player is considered to have no value, because he can then leave the club on a free transfer.

It’s probably easier to understand with a real world example. Let’s take Fabrizio Coloccini, who was bought for £10 million in 2008 on a five-year contract, meaning that the annual amortisation is £2 million. After two years his net book value in the accounts is £6 million (the original cost of £10 million less two years amortisation at £2 million per annum)".

[trophyshy 7084]

thank you both.

[ChezGiven 0]

"Most income tax systems allow a tax deduction for recovery of the cost of assets used in a business or for the production of income. Such deductions are allowed for individuals and companies. Where the assets are consumed currently, the cost may be deducted currently as an expense or treated as part of cost of goods sold."

 

'Cost of goods sold' includes all cash costs to the club and the additional costs. The depreciation in asset (player) value across its lifetime (contract) is part of the cost of goods sold.

 

Therefore, the higher the cost of goods sold, the lower the net profit, the lower the tax.

[GeeForce 0]

presuming we do go in for two strikers, who would everyone like to see us get?

 

if cardiff don't go up, i'd honestly like to see us go in for bellamy.

 

maybe try for roque sante cruz too?

 

those two would be your classic little and large combination. big fella wins it in the air so bellas can get on the end of it.

Surely not. Bellers has hardly got a game this season through injury and even in the championship when he has played he hasn't set the world alight, his pace is starting to go and furthermore his wages will be 90k plus. Roque Santa Cruz has not scored a premier league goal in a year I believe (correct me if I am wrong) and was completely ineffective against us. Again wages will be 90k plus. Complete waste of time and money the both of them imo.

 

Better options would be Podolski (currently at Fc Koln, wages are not massive as he has only ever played in Germany where I would asume they are significantly lower cos they only charge about £15 a game) and then I agree a bigger option. I really like the big man little man combo a la shearer and bellamy but I am struggling to think of a bigger option who isn't gonna cost the earth in wages. We might need a young'un off the continent

[GeeForce 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

Chez would you please explain amortisation to me? In thicko terms?

 

From that link I have posted a few times, but no-one reads:

 

"The concept of amortisation confuses many people, but it is simply how accountants handle player transfers. Instead of booking 100% of the player’s transfer price as a cost in the year of purchase, accountants treat players as assets, so the cost is capitalised and written-down (amortised) over the length of his contract. At the end of the contract, the player is considered to have no value, because he can then leave the club on a free transfer.

It’s probably easier to understand with a real world example. Let’s take Fabrizio Coloccini, who was bought for £10 million in 2008 on a five-year contract, meaning that the annual amortisation is £2 million. After two years his net book value in the accounts is £6 million (the original cost of £10 million less two years amortisation at £2 million per annum)".

 

Any idea how this works with players who have not cost you anything? Do they look at the worth of their contract instead of how much the player is valued at and then amortise from this point? If so, all the 5 1/2 yr contracts could point towards a potential sale, trying to build the value of the clubs assets from an accounting purpose higher than they are?

[Dr Gloom 22185]

presuming we do go in for two strikers, who would everyone like to see us get?

 

if cardiff don't go up, i'd honestly like to see us go in for bellamy.

 

maybe try for roque sante cruz too?

 

those two would be your classic little and large combination. big fella wins it in the air so bellas can get on the end of it.

Surely not. Bellers has hardly got a game this season through injury and even in the championship when he has played he hasn't set the world alight, his pace is starting to go and furthermore his wages will be 90k plus. Roque Santa Cruz has not scored a premier league goal in a year I believe (correct me if I am wrong) and was completely ineffective against us. Again wages will be 90k plus. Complete waste of time and money the both of them imo.

 

Better options would be Podolski (currently at Fc Koln, wages are not massive as he has only ever played in Germany where I would asume they are significantly lower cos they only charge about £15 a game) and then I agree a bigger option. I really like the big man little man combo a la shearer and bellamy but I am struggling to think of a bigger option who isn't gonna cost the earth in wages. We might need a young'un off the continent

 

hasn't podolski been shit recently? still probably better than most we could attract.

 

tbf to rsc, he's not had many games recently. i still reckon he's a class act. what is he - 28 or 29? i still think bellas is quality though injuries have always been an issue with him. you're probably right about us not being able to afford their wages though

Edited February 18, 2011 by Dr Gloom

[ChezGiven 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

Chez would you please explain amortisation to me? In thicko terms?

 

From that link I have posted a few times, but no-one reads:

 

"The concept of amortisation confuses many people, but it is simply how accountants handle player transfers. Instead of booking 100% of the player’s transfer price as a cost in the year of purchase, accountants treat players as assets, so the cost is capitalised and written-down (amortised) over the length of his contract. At the end of the contract, the player is considered to have no value, because he can then leave the club on a free transfer.

It’s probably easier to understand with a real world example. Let’s take Fabrizio Coloccini, who was bought for £10 million in 2008 on a five-year contract, meaning that the annual amortisation is £2 million. After two years his net book value in the accounts is £6 million (the original cost of £10 million less two years amortisation at £2 million per annum)".

 

Any idea how this works with players who have not cost you anything? Do they look at the worth of their contract instead of how much the player is valued at and then amortise from this point? If so, all the 5 1/2 yr contracts could point towards a potential sale, trying to build the value of the clubs assets from an accounting purpose higher than they are?

No, their contribution to the cost of goods is simply their wages.

[ewerk 31225]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

 

Is amortisation tax deductible though? Obviously with traditional fixed assets there will be certain capital allowances, I'm not sure how it works with footballers. Can major companies amortise the contracts of their key personnel for tax purposes?

Its a loss in asset value which is part of the profit and loss account. The more asset values are amortised, the more paper loss the club has, the less tax it pays.

 

Indeed. But depreciation is also included in most companies P&L, even though it isn't tax deductible. Although as I said, the tax system allows for certain capital allowances on machinery purchased.

[ChezGiven 0]

35m in the bank would pull in well in excess of 1 million in 6 months assuming it was all paid up front.

 

That's enough to buy our current strike force (Ameobi - Free, Lovenkrands - Free, Ranger - Free, Best - 1.5m)

 

Tax man will have his say in April don't forget.

 

Which is why we amortise our player assets to produce paper losses, so we can reduce the tax bill.

 

Is amortisation tax deductible though? Obviously with traditional fixed assets there will be certain capital allowances, I'm not sure how it works with footballers. Can major companies amortise the contracts of their key personnel for tax purposes?

Its a loss in asset value which is part of the profit and loss account. The more asset values are amortised, the more paper loss the club has, the less tax it pays.

 

Indeed. But depreciation is also included in most companies P&L, even though it isn't tax deductible. Although as I said, the tax system allows for certain capital allowances on machinery purchased.

 

I believe clubs can reduce their net profit on this basis and therefore pay less tax. You're the accountant though, you tell me!

[ewerk 31225]

I'm fucked if I know, I've never prepared a set of accounts in my life.

[Kid Dynamite 7182]

Santa Cruz is done as a decent striker

[Kevin S. Assilleekunt 1]

Better options would be Podolski (currently at Fc Koln, wages are not massive as he has only ever played in Germany where I would asume they are significantly lower cos they only charge about £15 a game) and then I agree a bigger option. I really like the big man little man combo a la shearer and bellamy but I am struggling to think of a bigger option who isn't gonna cost the earth in wages. We might need a young'un off the continent

 

Just get some African lads in from France or Holland, cheap as chips.

 

Hoaru from PSG and Gervinho.

[Park Life 71]

Better options would be Podolski (currently at Fc Koln, wages are not massive as he has only ever played in Germany where I would asume they are significantly lower cos they only charge about £15 a game) and then I agree a bigger option. I really like the big man little man combo a la shearer and bellamy but I am struggling to think of a bigger option who isn't gonna cost the earth in wages. We might need a young'un off the continent

 

Just get some African lads in from France or Holland, cheap as chips.

 

Hoaru from PSG and Gervinho.

 

Yeah big hefty African lads or hefty black lads from former Dutch colonies. Or big athletic fit black lads from France or former french colonies..Generally check colonies for fit black lads. Or maybe huge musclular types who can run fast with big grins and wide eyes..Ideally colonial.

[manc-mag 1]

Don't forget the Kenyans. Them lads'll run all day.

[sniffer 0]

Better options would be Podolski (currently at Fc Koln, wages are not massive as he has only ever played in Germany where I would asume they are significantly lower cos they only charge about £15 a game) and then I agree a bigger option. I really like the big man little man combo a la shearer and bellamy but I am struggling to think of a bigger option who isn't gonna cost the earth in wages. We might need a young'un off the continent

 

Just get some African lads in from France or Holland, cheap as chips.

 

Hoaru from PSG and Gervinho.

 

Yeah big hefty African lads or hefty black lads from former Dutch colonies. Or big athletic fit black lads from France or former french colonies..Generally check colonies for fit black lads. Or maybe huge musclular types who can run fast with big grins and wide eyes..Ideally colonial.

 

Spoken like a true kraut.

 

Pick ones who've seen snow at least in pictures.