Football 2010-2011

[ralph250]

If £35M goes out and comes back again (which is what you're saying happens), then it's an irrelevance against the P+L - the loss as stated on the books is the trading loss they're making.

[ampersand]

jesus christ!

whoever turned football into a business like this needs shot!

[eFestivals]

No, I'm saying it's gone out (through capex), then gone out again, then comes back in. out twice, in once.

nope, you've defo got that wrong. Books have be in balance if they've not been fiddled. Money cannot simply disappear, or appear.

[eFestivals]

Say Ralph FC regularly earns £10,000 profit a year. In the Jan transfer window, I purchase a £8,000 player on a 4 year contract. An investor looking at my statement might be discouraged to see that my club only made £2,000 that year. He'd wonder why profits fallen so much.

only if he's stupid.

The books would show a £2k profit, along with a new asset worth £8k.

If capitilise and amortise, then £8000 can be spread over the period said asset would benefit the club. So take cost of player/years (£8000/4 = £2000 per year).

Instead of realising the expense in one trading year, the club would subtract £2000 each year for next 4 years, so earning £8000 per year. More accurate picture of earning power.

I hope that's a typo, and not how you really think accounts work.

So cashflow different to what reported in earnings.

and the value of assets covers the difference. Nothing has vanished.

[ralph250]

I hope that's a typo, and not how you really think accounts work.

[eFestivals]

presuming that you're working this on everything else remaining the same....

When buying a player, balance sheet records a loss in cash in hand, then asset acquired

correct.

- then capitalised and amortised over the length of contract (on assumption that value is £0 when contract expires)

yep.

so P+L per year will show reduction,

yep

cashflow will gain,

nope. There's been no cash come in.

asset value per year reduction. When asset extinguished, then will need more capital expenditure. (ie. buy a new player).

yep.

[eFestivals]

In the balance sheets, the asset lowers, the cash rises.

No, nothing like this at all.

Think about it. You're saying the equivalent of this...

As your car depreciates, some mystery man comes along and puts a bundle of £20 notes into your hand, to make up your loss on that depreciation.

If you're right, will you introduce me to that nice man please?

Edited July 15, 2010 by eFestivals

[ralph250]

nope. There's been no cash come in.

Edited July 15, 2010 by ralph250

[ralph250]

No, nothing like this at all.

Think about it. You're saying the equivalent of this...

As your car depreciates, some mystery man comes along and puts a bundle of £20 notes into your hand, to make up your loss on that depreciation.

If you're right, will you introduce me to that nice man please?

[ampersand]

[Langdale Wolf]

[Wooderson]

[beLIEveR]

Rodgers takes the Swansea job.

Even putting my bias aside, that's a f**king stupid match. This is a man renown for being outspoken about the board, and for playing boring if at times undeniably efficient football. And who employs him? A club renown for attractive, attacking football, in a community desperate to retain its supporter base so as to avoid financial difficulties.

I hope Cardiff go into liquidation, and I hope Swansea make Cardiff look good.

[Sparticus]

I was in town and saw the advert for the new man united shirt in the shop window. I thought must be my lucky day since it was plastered all over the wall that the kit came out today. Then I looked to the right and saw the kit, my word it's bland and unattractive. Guess I'll have to wait another year to purchase a kit (Oh and the aon logo is ugly as sin!).

[markeee]

anyone else watching the North American Superliga? Houston game on atm, then another at 03;30

[PeterD]

The Villa home and away kits were shown yesterday, opinion is divided on the home one, I like it personally but Villa have gone with a black kit for their away kit and it looks gorgeous.

Carlos Cueller in the away kit.

Stewart Downing in the new home kit.

The goalie kit is a f**king shocker so wont be posting a picture of that.

[ampersand]

that orange strip (assuming its the 3rd?) is hoaching!

[philipsteak]

that orange strip (assuming its the 3rd?) is hoaching!

[PeterD]

I dont know what Hoaching means to be honest. They didnt announce the third strip, There were rumours of the third being orange but also of it being a plummy purple as that is the colour of their training kit, which is lovely, I could go for that if that was the case.

[PeterD]

This is the training kit.

Outside of that Emile Heskey is in the promo shots for the kit/sponsor and that leads me to think we wont be offloading him to Scotland as part of an Aiden McGeady deal.

[ampersand]

Is that good or bad?

[eFestivals]

that doesn't happen.

You buy a car for £1000 on the basis it will last you 5 years. You then start saving up by taking money out of your earnings each year and putting it into a pot...after five years, you've saved up enough to buy a replacement.

That is what's happening. The pot being the increased cashflow.

If you have money being put aside for the next car, that money has to come from somewhere, it doesn't just appear.

There can only be "increased cashflow" from cash that comes from somewhere, somewhere completely unrelated to any depreciating asset. Money doesn't just appear to cover the cost of any asset.

[Cardboard Box City]

We're selling monthly sponsorship and don't have a logo on them, so our home kit looks decidedly old school:

[smog]

Impressed with this signing. Thomson for £2m

http://news.bbc.co.uk/sport1/hi/football/teams/m/middlesbrough/8823058.stm

[Steve P]

Gutted to have missed out on all this exciting chat while my work computer went nuts.

Now this was a kit to be proud of