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[Football] The ticking Profit and Sustainability (FFP) timebomb...



southstandandy

southstandandy

WEST STAND ANDY
Jul 9, 2003
5,654
dazzer6666 said:
View attachment 179787
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Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to sell due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.
 




dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
52,565
Burgess Hill
southstandandy said:
Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to see due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.
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eh ? We would pay for players in exactly the same way so your instalment point is irrelevant 🤷‍♂️ Don’t confuse cashflow with P&L. The profit announcement doesn’t even include the Caicedo sale anyway
 


drew

drew

Drew
Oct 3, 2006
23,071
Burgess Hill
southstandandy said:
Good to hear, but you know there will be many fans who will expect a splurge just because the picture looks positive. Also most of the fees for players sold are usually paid in installments over a period of time so the Caicedo, Sanchez and Big Mac money won't all be available at once.

No doubt we will be in a healthy position to buy (especially from clubs who may be desperate to sell due to FFP) but it would be very unlike us to push the boundaries too far. Should be an interesting summer though.
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Not saying we are going to splurge the cash but just as we receive in instalments then likely we pay in instalments so makes no difference.
 










Weststander

Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,188
Withdean area
dazzer6666 said:
Not really…….the profitability allows it to happen so wouldn’t say it’s not connected. It’s like a dividend.
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It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.
 


Driver8

Driver8

On the road...
NSC Patron
Jul 31, 2005
15,986
North Wales
Weststander said:
It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.
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Loan capital repayments wouldn’t effect the P&L. Whilst you are reducing the cash balance you are also reducing debt so it cancels out.

Edit, sorry I think that’s what you we’re saying in your earlier post.
 












dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
52,565
Burgess Hill
Weststander said:
It’s not.

A dividend is a distribution of post tax profits.

A loan repayment merely transfers cash from the bank to the loan account. Solely on the balance sheet.

The question was “Wonder if the £122m profit is after TB has had some repayment?” Clearly a question about the P&L, enquiring whether the £122m came after a deduction for the loan repayment.
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yes, but without the surplus the repayment wouldn’t have been paid
 


Weststander

Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,188
Withdean area
dazzer6666 said:
yes, but without the surplus the repayment wouldn’t have been paid
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I know, but the NSC’er was asking specifically about the P&L account. Did the £122.8m come before or after TB’s loan repayment?

Before. Capital transactions are accounted for on the balance sheet, except in example exceptional circumstances.
 


dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
52,565
Burgess Hill
Weststander said:
I know, but the NSC’er was asking specifically about the P&L account. Did the £122.8m come before or after TB’s loan repayment?

Before. Capital transactions are accounted for on the balance sheet, except in example exceptional circumstances.
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IMG_6722.jpeg
 






Nobby Cybergoat

Nobby Cybergoat

Well-known member
Jul 19, 2021
7,059
nwgull said:
Sorry, but this is a football fans' forum and you know the rule: Any issue on the playing side of the club will be solved by the Chairman getting the cheque book out and buying a new striker.
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OK, we'll have one of those as well!
 








Badger

Badger

NOT the Honey Badger
NSC Patron
May 8, 2007
12,793
Toronto




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