PSR rules and the real KLD/KS masterclass

[mackemdr]

Seen many on here often lament "why are we spending more" and the club has a clear strategy here is where it pays of.

PSR rules say a club cannot lose more than £105 million over 3 seasons.

Leeds (who are already about selling to buy) have lost over £90mill the last 2 seasons.

Burnley around £65mill

Our £18mill losses over two seasons SHOULD give us the ability to invest

 

[Be Here Now]

It's as if they have an actual plan

 

[Grumpy Old Man]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

 

[Father Jack Hackett]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

So Leeds only have £10m to spend?

 

[Loch Ness Drogba fan]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

Sadly, you’re correct. We’re heavily hamstrung - deliberately. All about the prem maintaining its wealth. We’ll have to sell a few. I think one of Rigg/Jobe/Neil will have to go.

 

[Walterwhite766]

Sadly, you’re correct. We’re heavily hamstrung - deliberately. All about the prem maintaining its wealth. We’ll have to sell a few. I think one of Rigg/Jobe/Neil will have to go.

Jobe looks already gone. If that’s a 49million sale are we saying that’s 100 million to spend

Or, as ever, is it not as simple as that?

Genuinely nee idea

 

[southstander]

Stadium naming rights?

Fuck has anyone thought of naming rights for each blade of grass, especially when Hume takes someone out, the camera could zoom in.

 

[Jasper]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

But we expect revenues to go up by between £200-250m though? And whilst costs go up, we surely won't be going from circa £40m outgoings to £260m-£310m?

 

[Grumpy Old Man]

So Leeds only have £10m to spend?

Probably a bit more. People forget that the PSR loss is usually less than accounting loss, because you can exclude academy and womens' costs from the calculation. So our £9m accouting loss was probably more like £4m when that's taken into account. The new regulator could usefully insist that clubs include the calculation in the published accounts in the interests of transparency.

 

[Gurneysgurn]

That £61m would then be topped up by any player sales? Does it then make sense to cash in on Jobe and potentially Rigg?

 

[WishyWashy]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

Wouldn't selling Watson for £10m pure profit and then potentially Jobe add to that quite significantly?

 

[Grumpy Old Man]

But we expect revenues to go up by between £200-250m though? And whilst costs go up, we surely won't be going from circa £40m outgoings to £260m-£310m?

No. The £220m is the minimum over four seasons. Assuming increased commercial income, turnover is likely to rise by around £150m next season.

 

[Loch Ness Drogba fan]

Jobe looks already gone. If that’s a 49million sale are we saying that’s 100 million to spend

Or, as ever, is it not as simple as that?

Genuinely nee idea

It’ll be pure profit calculated in a 3 year cycle. So 27m (if he went for rumoured 30m) would be added to your ability to spend. Watson was an academy player, so his sale is pure profit again. It’s why Chelsea had to sell Gallagher despite him being great. Hideous system. We need checks on teams spending but a system where it encourages to sell your academy lads doesn’t sit right to me. You dream of a team full of local lads.

 

[Ron Swanson]

Probably a bit more. People forget that the PSR loss is usually less than accounting loss, because you can exclude academy and womens' costs from the calculation. So our £9m accouting loss was probably more like £4m when that's taken into account. The new regulator could usefully insist that clubs include the calculation in the published accounts in the interests of transparency.

Have I read your posts incorrectly or could they spend £100m (not that they would) and depending on contract length only £25m could be counted against it, or would £61m be the total no matter the contract length...not including player sales or new commercial deals?

 

[Thunder Road]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

Makes it even harder for newly promoted teams

 

[Loch Ness Drogba fan]

Makes it even harder for newly promoted teams

Deliberately.

 

[Daniels]

I’ve seen a lot of how cheap our squad is. But won’t this be an advantage to us especially with all the academy players we have.

 

[Jasper]

No. The £220m is the minimum over four seasons. Assuming increased commercial income, turnover is likely to rise by around £150m next season.

Our wage bill likely to at least double if not treble?

 

[0321safc]

Oiur limit next season will be £61m, not £105m. It's a rolling three year calculation, and the first two are based on the Championship limit of £13m/season.

The PL is so evidently corrupt it’s not even in doubt. Clubs are hamstrung from the moment of promotion. Clubs sat in the middle rung of the PL will just be happy for the status quo, they don’t want a Sunderland, Leeds, Birmingham or Wednesday with big capital coming along to rock the boat.

 

[Grumpy Old Man]

Wouldn't selling Watson for £10m pure profit and then potentially Jobe add to that quite significantly?

It would. Working out the "affordable" transfer kitty is horribly complicated. For a start, a lot of the increased revenue will go out in increased player wages. And while player profit counts in full, only a year's amortisation is applied for incoming fees (over a maximum of 5 years. From where we are now, we could probably afford to spend about £100m on fees plus profits on disposal. Subject to the availability of finance, of course. You can see why KLD might welcome new investors.

Our wage bill likely to at least double if not treble?

Yep.