Rio Ferdinand



keybuk said:
I'm not going to argue with grumpys interpretation of the accounts as he's far better place than me to understand the financial jiggery pokery that sits behind accounting. But there's something about the whole thing that just isn't right. The club might have large outgoings but they get a hell of a lot coming in. They may have had a couple of seasons out of the Sky TV money but so have other clubs. Season tickets might be a bit cheaper than other places but they sell a lot more than other clubs. There are a number of clubs against whom we should be able to compete financially and yet we are not able to.
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The paying off entirely of ‘unwanted contracts’ was included in last year’s increase too.

It will be interesting to see that now some of these players have moved on will the money be ‘put back’
 
What A Waster said:
The figures are not out for the 17/18 season.
But in 15/16 the wage bill was £75m.
Do you really think a man like Ashley is going to increase the wage bill by almost £40m, despite losing £100m in tv money?
Keep in mind that when we dropped to the championship, wijnaldum, cisse, sissoko, janmaat, taylor, townsend, and a few other first team players all left. There were 15 departures that summer.
There is no way the likes of Grant Hanley, Daryl Murphy et al were on more money than those that left.
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However, they are out for 2016/17, and the disclosed wage bill was £112m.

Sima said:
The paying off entirely of ‘unwanted contracts’ was included in last year’s increase too.

It will be interesting to see that now some of these players have moved on will the money be ‘put back’
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That was £22m. I have no proof, but the likelihood is that that amount was paid after the year end to players who were surplus to requirements after promotion, and whose contracts had to be paid up. The only reason for playing with a provision (that is, overproviding and writing it back to profit the following year) would be if you wanted to move profits from one year to the other. It's a fairly standard "creative accounting" technique used to smooth a profit trend when you've made too much in one year. To be honest, that's only really useful in a public company, where the market doesn't like a "spiky" profit line. In a private company like Newcastle, it's actually pretty pointless. Accounting guidelines say that you should provide for costs you bound to pay as soon as you recognise them, hence putting them through the books in advance of the cash going out.
 
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Grumpy Old Man said:
However, they are out for 2016/17, and the disclosed wage bill was £112m.



That was £22m. I have no proof, but the likelihood is that that amount was paid after the year end to players who were surplus to requirements after promotion, and whose contracts had to be paid up. The only reason for playing with a provision (that is, overproviding and writing it back to profit the following year) would be if you wanted to move profits from one year to the other. It's a fairly standard "creative accounting" technique used to smooth a profit trend when you've made too much in one year. To be honest, that's only really useful in a public company, where the market doesn't like a "spiky" profit line. In a private company like Newcastle, it's actually pretty pointless. Accounting guidelines say that you should provide for costs you bound to pay as soon as you recognise them, hence putting them through the books in advance of the cash going out.
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What happens when that provision that you have already paid for is no longer needed? Is that fed back in the following year?
 
He is now making out on Twitter that everything he said was a wind up, even Man United fans have been giving him stick for what he said, seems he has seen the criticism he has received throughout football and is desperately trying to backtrack.
 
Sima said:
What happens when that provision that you have already paid for is no longer needed? Is that fed back in the following year?
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If you provide say £30m to pay off player contracts, but the actual cost is £20m then in theory £10m can be released to improve profitably the following year
 
Born Never Asked said:
He is now making out on Twitter that everything he said was a wind up, even Man United fans have been giving him stick for what he said, seems he has seen the criticism he has received throughout football and is desperately trying to backtrack.
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He was successful though mags were raging :lol:
 
I see Richard keys has got involved saying Rafa should buy players out of his own money :lol: I mean that has to be a deliberate wind up to get a few bites surely.
 
Honess10 said:
I see Richard keys has got involved saying Rafa should buy players out of his own money :lol: I mean that has to be a deliberate wind up to get a few bites surely.
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Richard Keys once posted that he couldn't understand why it cost him just a few quid to fill his Range Rover up in Dubai or wherever the fuck he scuttled off to yet cost a lot more in the UK. The bloke is an idiot.
 
Sima said:
What happens when that provision that you have already paid for is no longer needed? Is that fed back in the following year?
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When the cash is paid out, the provision will be reduced by the amount paid. You'd only feed something back if you'd overestimated. Given how late the accounts were, I'd be very surprised if it didn't match the cash paid during 17/18.
 
box2box said:
If you provide say £30m to pay off player contracts, but the actual cost is £20m then in theory £10m can be released to improve profitably the following year
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All depends who is and isn't included which is the unknown. Two years of Colback on 50k per week is over £5m for starters,three years of lazar on 30k not much less. So that's 10m on just two players.
 
box2box said:
If you provide say £30m to pay off player contracts, but the actual cost is £20m then in theory £10m can be released to improve profitably the following year
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You would think so, we won't know until subsequent accounts are published though.
 
Born Never Asked said:
He is now making out on Twitter that everything he said was a wind up, even Man United fans have been giving him stick for what he said, seems he has seen the criticism he has received throughout football and is desperately trying to backtrack.
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Once somebody gets called out or shown up they pretend it was a wind up. Canny sad really.
Still doesn't warrant some of the abuse he got like.
 

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