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Jhon Lucumi - Transfer Rumour

Baxter the maestro said:
I think that the more likely reason for allowing the release clause deadline to elapse was because it fell within a different accounting period for calculating the rolling three years losses. Given the club has arranged a line of credit, I doubt that the 'lump-sum' issue was prohibitive.
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The timing of accounting period end isn't really an issue on incoming transfers, the cost is spread over the length of the contract so a few weeks timing difference has very little impact. It can be an issue for a selling club since they would recognise any profit/loss on the transfer at the point of the transfer, so may prefer that to land in a particular accounting period.
 

Must be bored said:
The timing of accounting period end isn't really an issue on incoming transfers, the cost is spread over the length of the contract so a few weeks timing difference has very little impact. It can be an issue for a selling club since they would recognise any profit/loss on the transfer at the point of the transfer, so may prefer that to land in a particular accounting period.
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You must be bored


Me Fletch
 
Must be bored said:
The timing of accounting period end isn't really an issue on incoming transfers, the cost is spread over the length of the contract so a few weeks timing difference has very little impact. It can be an issue for a selling club since they would recognise any profit/loss on the transfer at the point of the transfer, so may prefer that to land in a particular accounting period.
Click to expand...

Not necessarily. Standard accounting practice is to charge a full year's amortisation in the year of acquisition, and nothing in the year of disposal. What's more likely here is that if we met the release clause we's have to pay the full fee upfront. Now that's gone, we can negotiate instalments. It's more to do with cash flow than PSR (which is assessed on a rolling three season basis).
 
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