26 Jul 2024 10:47:26
Just a note for those who don't grasp there is no such thing as a 'free transfer'
KS (as an example) will cost a 6 figure signing on fee + c£20k/ week wages - for simplicity I'm not going to include agent fees or employer tax contributions (tho these are significant) . In all likelihood KS will cost us £2m this year.
When a transfer fee is included the club (like all clubs) account for this over the legnth of the player contract.
So someone like CCV for example cost £6m on a 5.5 year deal (£1.1m a year) added to his salary and other expenses her probably costs us £2.5m for this season.
We need to get away from thinking about transfer fees, they are irrelevant. All this 'net spend' bs is an attempt to create a stick to beat our board with. Players cost money in all sorts of ways, a negative net transfer spend doesn't mean a thing.
26 Jul 2024 11:34:23
I’ve never read so much nonsense. ?♂️.
26 Jul 2024 11:45:32
Yeah but those are all incorporated within our existing cost base.
We still have over 100 million in the bank!
26 Jul 2024 11:52:33
Sorry Gerry, I didn’t mean to be cheeky.
I can’t agree that Net transfer profit and a transfer negative are BS and irrelevant.
26 Jul 2024 12:00:44
Money in the bank doesn't really matter when it comes to P&L, this is how club accounting works. We have a budget of around £60-65m per year. This is based on ST sales, merchandise, tv and prize money and Europa League group stage participation. Anything above this cannot be guaranteed (CL money, transfer fees, etc) .
So that figure of £60-65m is what our squad has to cose us per year based on the above method of accounting. Add up the £2m-£3m per year players and you soon find it doesn't bend very far.
If we spend a big transfer fee there is a possibility we show a loss for the year, the fact it came from our bank reserves is irrelevant. We cannot run at a loss.
If we push the model to include £4m-£5m/ year players (eg someone with a £12m transfer fee and £40k/ week wages) we need to find a guaranteed budget of closer to £100m per year. And that's simply not possible.
26 Jul 2024 13:01:30
Thanks very much Gerrymurohy for your valuable and accurate information today re free transfers and other trading . We have had enough fake news or lies probably origionally emanating from Sevco or a Sevco supporting media source . Believing in free transfers is akin to believing in Santa Claus .
We have people on here who wouldn’t send a non:mechanic, non -driver or non car passenger to buy Car in excess of £20 k from a dealer they don’t know .
They expect our Board to buy a specific player by a specific date. R else PL is still to blame . None of us are experts many almost on a daily basis prove they know nothing about transferring players.
26 Jul 2024 13:17:28
Hi Gerry. Four 8 million pound player is 32 million.
4 x 40k per week is 8 million per year x 5 year contracts is 40 million.
Total 72 miilon which is an increase of 14.4 million per year.
However what has been forgotten is the transfer fees of four 20 grand a week players we have just replaced.
It also doesn’t considered the potential of more champions league revenue as we will have a better quality team.
I think there is scope to do this even more so if we somehow get more players from the youths reaching the first team.
It is always possible to increase your costs as long as the revenue follows suit.
Worse case scenario is you have to sell a player.
Whatever way we carve it up our current business model has produced 100-150 million profit.
Even the board have admitted this is sub optimal ?.
26 Jul 2024 15:07:07
For our club to be continually growing we need to be speculating to accumulate. With an improved scouting network/ recruitment system the club will have more success within the player trading model.
Clubs like Brighton, sporting Lisbon, Benfica, Porto make massive amounts of money through the same model. With the right network in place the success rate of selling players on in the future for greater fees increases.
If the player trading model is ran successfully it would A) increase our annual profit.
B) we would make more money long term than the interest the money in the bank is making.
26 Jul 2024 15:36:23
Gerry can you give a breakdown of that 60-65M as it is not clear how you are calculating it.
26 Jul 2024 16:57:00
The enchanted Champions League money and any sales of players after July the ist are part of the accounts for year ending June 30th 2025 . That is why PL was correct that they didn’t budget for budgeting for the Champions League proper any year .