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[Albion] Albion announce £122.8m profit for the 2022/23 season







A1X

A1X

Well-known member
NSC Patron
Sep 1, 2017
17,909
Deepest, darkest Sussex
Pw Scrooge GIF
 


AZ Gull

AZ Gull

@SeagullsAcademy Threads: @bhafcacademy
Oct 14, 2003
11,779
Chandler, AZ
nwgull said:
This is not the case. Pedro’s 30m fee will have come off of the cash balance, but he’ll have been included on the asset register with a value of 30m. Net result: zero loss. This value willl be amortised over the 5 years of his contract, so in terms of the accounts he’ll cost the club 6m a year until either his current contract expires or he signs a new deal.
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The question I was responding to was whether Joao Pedro's purchase was in this set of accounts (22-23) or next year (23-24). I was making the point it will be in this year's.
 




nwgull

nwgull

Well-known member
Jul 25, 2003
13,827
Manchester
Gabbiano said:
So sales are included as the full sale price upfront but purchases are spread across the length of the contract? That seems really odd.
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It's standard accountancy practice and makes sense as part of a business's value is it's assets. Having a 30m player contracted for 4 years is a significant asset!
 








AZ Gull

AZ Gull

@SeagullsAcademy Threads: @bhafcacademy
Oct 14, 2003
11,779
Chandler, AZ
Gabbiano said:
So sales are included as the full sale price upfront but purchases are spread across the length of the contract? That seems really odd.
Click to expand...
It isn't really.

If you were a manufacturing company and bought a machine that would be in operation for five years, it makes perfect sense to spread the purchase cost out over those five years.
If you then sold an older machine that you no longer required, to a different manufacturing company, you would recognise the proceeds of the sale in the year you sold it (along with some accountancy jiggery pokery based upon the remaining value it had on your books).

In essence football clubs are doing exactly that with players (except they are referred to as intangible assets rather than fixed assets).
 




origigull

origigull

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Jun 29, 2009
1,172




Perkino

Perkino

Well-known member
Dec 11, 2009
5,988
Fabulous news, I don't expect this to have any impact on our strategy. Sell a couple in the summer for big money and bring in a handful of potentials all U21's and possibly 1 experienced player to bolster the squad
 




Peppermint Tea

Peppermint Tea

Well-known member
Aug 31, 2007
1,062
Perkino said:
Fabulous news, I don't expect this to have any impact on our strategy. Sell a couple in the summer for big money and bring in a handful of potentials all U21's and possibly 1 experienced player to bolster the squad
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Agree re no change to the overarching strategy. However, I do think the squad needs more of an overhaul this summer than in any of the last few summers. I say that because I feel we have recalibrated our ambitions to be pushing for European places, not just top 10.
 


Gabbiano

Gabbiano

Well-known member
Dec 18, 2017
1,287
Spank the Manc
nwgull said:
It's standard accountancy practice and makes sense as part of a business's value is it's assets. Having a 30m player contracted for 4 years is a significant asset!
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When you put it like that it makes much more sense!

I'll never be an accountant, I don't think in the right logic for it!
 


nwgull

nwgull

Well-known member
Jul 25, 2003
13,827
Manchester
Perkino said:
Fabulous news, I don't expect this to have any impact on our strategy. Sell a couple in the summer for big money and bring in a handful of potentials all U21's and possibly 1 experienced player to bolster the squad
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I don't know, we've often bought straight-into-the-first-choice-team players - eg Cucurella, Estupinan and Pedro - but they're usually limited to one per window. I reckon we might buy 2 or 3 this year, and I don't think we'll sell anyone apart from Undav and maybe a couple of other loanees that aren't likley to step up to PL level.
 


















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