Europa league and SCR

[Mowgli]

So we got £168.2 million for staying up…. So that’s prize money and tv deal money.

Looking at last season the club brought in £28.3 million (gate receipts/merch/commercial - not counting prize money or champ tv deal share). Let’s assume a 10% growth in this revenue, minimum. So £31 million….

Giving us roughly £200 million revenue to play with. 70% of which is £140 million. So £140 million to spend (excluding player sales). Working off an existing amortisation of transfer spend of 44 million (based on last seasons transfer spend spread over an average of a 4 year contract) the club would be afforded around £100 million to spend still! That’s an insane amount when you consider how transfers are accounted through amortisation.

I’m no accountant, but I really don’t think we have much to fear given the revenue the club has now got and also the means by which transfer fees are accounted for over the length of player contracts. Especially with our tendency to buy predominantly young players on long term contracts!

Biggest concern for me is the rules on home grown players which may mean we have to pay more for less (so to speak) or to field a smaller/or more inexperienced (young) team.

You need to add in wages for the year which will be approaching £100m.

 

[Boredom]

You need to add in wages for the year which will be approaching £100m.

So even then that leaves £40 million remaining which is roughly the amount we spent last window when amoritised

 

[summaz]

The club might have been aiming for say around a 70% commitment anyway without Europe, and now will max out the cap at the 70%

I'd be surprised if we'd have committed fully to the 85% had we finished lower and we'd have made less money from a lower finish anyway

 

[Zen Den]

It’s no big deal really. Every club in Euro comps is 70% anyway; if a club wants to spend more to get into Euro comps (85%) it’s only really cost effective to do so if you end up in the Champs League as the income from that will cover the fact you’re 15% over. However it would also affect your ability to strengthen again in that Champs League season, so I suspect 70% will be the norm.

 

[summaz]

Do the transfer fees work the same way in that if you purchase a player for 30m over a 5 year contract, it'd be 6m over each of the 5 years?

So if we were 50m off hitting our cap before selling anyone and we signed a player for 30m over the 5 year contract on 60k p/w. Would the cost for the 1st year of SCR be 6m (first year of transfer fee) + 3.12m (first year of players salary) = 9.12m?

@Grumpy Old Man any idea?

 

[Grumpy Old Man]

Do the transfer fees work the same way in that if you purchase a player for 30m over a 5 year contract, it'd be 6m over each of the 5 years?

So if we were 50m off hitting our cap before selling anyone and we signed a player for 30m over the 5 year contract on 60k p/w. Would the cost for the 1st year of SCR be 6m (first year of transfer fee) + 3.12m (first year of players salary) = 9.12m?

@Grumpy Old Man any idea?

Spot on.

 

[JL1985]

I’ve posted on another thread that we’ll get at least £2.5-£3m from FIFA for our players representing their countries at the World Cup.