Guessing most of our signings/sales were made after the last accounts date. So straight away that will go into the money out section..... probably £100million out net spend?? Not sure how that’s accounted for. Split over the term of the contract??
How two clubs can buy a player from each other for 100m and yet both make 70m profit?
Football clubs are the kings of dodgy accounting ... in the world of football accounting the value of a player is depreciated over their contract, older players are front loaded as their value decreases whilst younger players are back loaded as with luck their value goes up - so how does a 100m swap make both clubs 70m profit,
Let's use Smith at Club A and Jones at Club B
Smith is sold by Club A to Club B for 100m, club A shows income of 100m (but get zero cash it's a swap)
Jones is sold by Club B to Club A for 100m, club B shows income of 100m (but get zero cash it's a swap)
Smith had one year left on his contract for which Club A has a book value of 10m - so 100m in 10m out they show a profit of 90m - they buy Jones for 100m on a five year contract which they assign at 20m a year, so another 20m out leaving a healthy 70m profit.
Jones had one year left on his contract for which Club B has a book value of 10m - so 100m in 10m out they show a profit of 90m - they buy Smith for 100m on a five year contract which they assign at 20m a year so another 20m out leaving them also a healthy 70m profit
They will both have to account 20m a year for the next four years to pay off the value of the contract.
Normal businesses wouldn't do this as it creates a 70m tax liability, However for clubs spending way beyond what they earn this is a neat trick to get around FFP, you will see more and more of these inflated value swap deals, you already have, where clubs are desperate to avoid loses and a breach of FFP rules.
Spurs depreciate contracts over one year less than their length, it means we can sell players relatively cheaply when their contracts run down and still have that cash available for transfers, not to cover off a residual book value. The huge advantage of having home grown players, or indeed players who extend their contracts, is that you are no longer writing down their book value once it's reached zero.
For example Kane has zero book debt whatever we sold him for we could spend, conversely Ndombele probably still has a book debt of 40m so if we sold him now for 45m, then on the books we would only have 5m to spend.