The Fish 10335 Posted March 5 Share Posted March 5 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 Link to comment Share on other sites More sharing options...
ewerk 29211 Posted March 5 Share Posted March 5 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. Link to comment Share on other sites More sharing options...
Renton 20177 Posted March 5 Share Posted March 5 How do you amortise wage costs like? So-called accountants. Link to comment Share on other sites More sharing options...
ewerk 29211 Posted March 5 Share Posted March 5 You don't. They're an expense. Link to comment Share on other sites More sharing options...
Alex 33830 Posted March 5 Share Posted March 5 (edited) 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 3 Link to comment Share on other sites More sharing options...
Alex 33830 Posted March 5 Share Posted March 5 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 2 Link to comment Share on other sites More sharing options...
Gemmill 42030 Posted March 5 Share Posted March 5 32 minutes ago, Renton said: How do you amortise wage costs like? So-called accountants. 9 Link to comment Share on other sites More sharing options...
The Fish 10335 Posted March 5 Share Posted March 5 (edited) 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 7 Link to comment Share on other sites More sharing options...
Howay 12496 Posted March 5 Share Posted March 5 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. 2 Link to comment Share on other sites More sharing options...
Renton 20177 Posted March 5 Share Posted March 5 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. 1 Link to comment Share on other sites More sharing options...
The Fish 10335 Posted March 5 Share Posted March 5 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. 2 Link to comment Share on other sites More sharing options...
Renton 20177 Posted March 5 Share Posted March 5 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. 3 Link to comment Share on other sites More sharing options...
The Fish 10335 Posted March 5 Share Posted March 5 (edited) 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 Link to comment Share on other sites More sharing options...
ewerk 29211 Posted March 5 Share Posted March 5 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. 3 Link to comment Share on other sites More sharing options...
aimaad22 3907 Posted March 5 Share Posted March 5 Now only if there was an ICAEW member around to demistfy all this Link to comment Share on other sites More sharing options...
The Fish 10335 Posted March 5 Share Posted March 5 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? Link to comment Share on other sites More sharing options...
aimaad22 3907 Posted March 5 Share Posted March 5 (edited) 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 Link to comment Share on other sites More sharing options...
Gemmill 42030 Posted March 5 Share Posted March 5 7 minutes ago, aimaad22 said: Now only if there was an ICAEW member around to demistfy all this 8 Link to comment Share on other sites More sharing options...
Gemmill 42030 Posted March 5 Share Posted March 5 One of the all time great gifs. 3 Link to comment Share on other sites More sharing options...
ewerk 29211 Posted March 5 Share Posted March 5 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. Link to comment Share on other sites More sharing options...
Toonpack 8506 Posted March 5 Share Posted March 5 ICAEW ??? Incredibly Conceited Accountants Excel Wankathon 3 Link to comment Share on other sites More sharing options...
Anorthernsoul 1221 Posted March 5 Share Posted March 5 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! 3 Link to comment Share on other sites More sharing options...
ewerk 29211 Posted March 6 Share Posted March 6 14 hours ago, Gemmill said: 9 Link to comment Share on other sites More sharing options...
MrRaspberryJam 548 Posted April 9 Share Posted April 9 The big bastard is staying. 1 Link to comment Share on other sites More sharing options...
Dr Gloom 21191 Posted April 9 Share Posted April 9 1 hour ago, MrRaspberryJam said: The big bastard is staying. Link to comment Share on other sites More sharing options...
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