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Personally I think the record breaking profit has come at a good time what with the finances needed for what will be the most expensive club football ground in the UK.
However I do want to see a successful transfer window, in both outgoings and incomings.
They don't need to be top dollar signings, so long as key area's are addressed and it doesn't look like we are fobbing off the manager with wank players he doesn't want / need.
reallyThis is right, the true accounting treatment is the amortization occurs over the players contract length as they can technically go for free at end of contract, that is what is commonly used
Well that's the news all us fans have been waiting for. Can't express how proud i am to support the most profitable team in the league....suck on that Goons. You can take ur FA cup final and shove it up ur Woolwich! #winning
P.s. The above paragraph is a work of fiction and in no way represents my true opinion or excitement levels regarding our profitability
No, no, Mick it's your understanding that's off the boil. First you misunderstand what I'm saying, then you compound the error by getting it wrong again.really
then we should have sold Bale for 2 million?
Amortisation isn't a given - its a method of "adjusting" the book keeping.
Player value fits as an intangible, eligible for amortisation
But player value goes up as well as down
So Greaves - no, you're understanding is off the boil - you were a lot closer before you tried to justify yourself..............
rightoNo, no, Mick it's your understanding that's off the boil. First you misunderstand what I'm saying, then you compound the error by getting it wrong again.
I remain happy with my amortisation explanation and the main point I made stays valid, that we will be facing heavy amortisation costs, and that will be a key reason, given that we won't be making any superstar sales this financial year, as to why our profits won't be anything like what they were last financial year.
Oh and I still await Ran's explanation as to why 'amortisation is bollocks'
Don't write them down them...use a typewriter or something...Uhm, it might be that I haven't slept in weeks, but we're talking about amortisation in terms of writing down assets; it's on the balance sheet, nothing to do with the P&L?
Writing down assets reduces your net worth, not your profit
Nice to see you coming round to my way of thinking Mickrighto
facing heavy amortisation costs.......... that makes loads of sense.
Have a nice day
Actually thinking about it depreciation goes in as a cost doesn't it, so it would reduce your profits.
I would expect an accountant to view a player purchase as a cost over the term of contract, so:
- Purchase player for £50m on a 5 year contract
- Amortise at £10m per year, listed as a business expense on the P&L
- Sell after 3 years for £25m
You'd count that as a £5m profit on the sale (as the player is "worth" £50m less £30m amortised over the three years = £20m).
Note to self...never get a beer with an accountant.
aulinhobored:
I've been off air for a while, but love all the spurs financial reviews.Actually thinking about it depreciation goes in as a cost doesn't it, so it would reduce your profits.
I would expect an accountant to view a player purchase as a cost over the term of contract, so:
- Purchase player for £50m on a 5 year contract
- Amortise at £10m per year, listed as a business expense on the P&L
- Sell after 3 years for £25m
You'd count that as a £5m profit on the sale (as the player is "worth" £50m less £30m amortised over the three years = £20m).
Yep Shawry those costs are liable to be with us for a while, plus of course the costs of last summer, and whoever is left of previous relevant seasons, such as Lloris and Eriksen.I've been off air for a while, but love all the spurs financial reviews.
Well done Nick, now we are getting in the swing of financial things.
It was also intereesting in our latest financials that given the large profit we made on Bale that Levy took the opportunity to put in a further writedown on player intangible assets of £11mill. They did not mention in accs who, but would be guessing Paulinho, Soldado as likely given not hitting expected targets (eg goals, appearances - club & country, no CL qualification).
And yes confirm Greavisie obsersavation that player amortisation will be higher in 2014/15 because of the asset val (magnificent 7) being amortised over the life of their contracts.