Kyle Walker in £50m move

[FMBlade1]

http://www.bbc.co.uk/sport/football/40598351

I believe the sell on fee is 10%? I would be surprised if all of it goes to increasing the transfer fund, some will go to the academy and other things like paying outstanding debts etc. but can only be good news as we weren't counting on this money. That said other clubs/players might increase their demands on the back of this and the fee will probably trickle in installments so wouldn't hope that it would be game changing yet.

As for the transfer itself, City don't have a recognized right back and have limited home grown players so explains the move and price, personally don't think he's worth that much (still not convinced about his defending when he doesn't have someone solid next to him) but then the market is mental. Trippier has been just as good for Spurs recently so makes sense for all parties really.

Wish him all the best now, hopefully won't forget his 'promise' to return to us someday UTB

 

[Dkc]

Some will go to the taxman of course

 

[CopenhagenBlade]

Some will go to the taxman of course

How would this work? Genuine question as I am assuming that there are different tax rates for different things. If he was our asset and we sold him I assume that the rate is different to this where Spurs are giving us £5m? Anybody?

 

[GRUMPY BLADE]

http://www.bbc.co.uk/sport/football/40598351

I believe the sell on fee is 10%? I would be surprised if all of it goes to increasing the transfer fund, some will go to the academy and other things like paying outstanding debts etc. but can only be good news as we weren't counting on this money. That said other clubs/players might increase their demands on the back of this and the fee will probably trickle in installments so wouldn't hope that it would be game changing yet.

As for the transfer itself, City don't have a recognized right back and have limited home grown players so explains the move and price, personally don't think he's worth that much (still not convinced about his defending when he doesn't have someone solid next to him) but then the market is mental. Trippier has been just as good for Spurs recently so makes sense for all parties really.

Wish him all the best now, hopefully won't forget his 'promise' to return to us someday UTB

https://www.s24su.com/forum/index.php?threads/kyle-walker.56291/#post-1378887

https://www.s24su.com/forum/index.php?threads/kyle-walker-to-move-on.51570/page-10#post-1383389

https://www.s24su.com/forum/index.php?threads/£5-000-000.56374/#post-1383397

 

[Sean Thornton]

Some will go to the taxman of course

Only any vat element if applicable. There are substantial losses brought forward to cover ten times that.

 

[Sean Thornton]

How would this work? Genuine question as I am assuming that there are different tax rates for different things. If he was our asset and we sold him I assume that the rate is different to this where Spurs are giving us £5m? Anybody?

No different rates for corporation tax.

 

[Sean Thornton]

http://www.bbc.co.uk/sport/football/40598351

I believe the sell on fee is 10%? I would be surprised if all of it goes to increasing the transfer fund, some will go to the academy and other things like paying outstanding debts etc. but can only be good news as we weren't counting on this money. That said other clubs/players might increase their demands on the back of this and the fee will probably trickle in installments so wouldn't hope that it would be game changing yet.

As for the transfer itself, City don't have a recognized right back and have limited home grown players so explains the move and price, personally don't think he's worth that much (still not convinced about his defending when he doesn't have someone solid next to him) but then the market is mental. Trippier has been just as good for Spurs recently so makes sense for all parties really.

Wish him all the best now, hopefully won't forget his 'promise' to return to us someday UTB

What outstanding debts?

 

[IdLiketoRogerMoore]

How would this work? Genuine question as I am assuming that there are different tax rates for different things. If he was our asset and we sold him I assume that the rate is different to this where Spurs are giving us £5m? Anybody?

We'd only be liable to pay tax on any profit we make at the end of each financial year.

I'm not sure whether this would be VAT applicable, but i don't think so as it wouldn't class as a goods or services.

 

[CopenhagenBlade]

No different rates for corporation tax.

Thanks, another question...do our players suffer from depreciation of value (open goal for some) when we do the accounts?. As they are an asset but unlike say a machine, some of them go up in value?

 

[Sean Thornton]

Thanks, another question...do our players suffer from depreciation of value (open goal for some) when we do the accounts?. As they are an asset but unlike say a machine, some of them go up in value?

Intangible assets on the balance sheet. Any transfer fees are written off over the period of their contract. When sold the sale proceeds are set against the written down value and the profit or loss charged to the profit and loss account.

 

[bladesmanluke]

Some will still tell you £3m was a good deal

 

[Kenilworth]

Intangible assets on the balance sheet. Any transfer fees are written off over the period of their contract. When sold the sale proceeds are set against the written down value and the profit or loss charged to the profit and loss account.

Does that mean that we get closer to £5m then as Spuds would have written off his transfer fee so the gross profit they need to calculate is nearer the £50m than the £47-48m margin?

 

[Sean Thornton]

We'd only be liable to pay tax on any profit we make at the end of each financial year.

I'm not sure whether this would be VAT applicable, but i don't think so as it wouldn't class as a goods or services.

Vat is applicable between UK clubs. As I've said, previous years losses, of which SUFC have millions of pounds worth, can be brought forward against current year profits.

 

[YES Blade]

Some will still tell you £3m was a good deal

That's kind of how I'm thinking with this one, it's very bitter sweet.

It's great to be getting the best part of £5m from a sell on clause and whilst transfer fees have gone crazy since 2009, it does make you wonder how much we could have made from Walker had we kept him another season or even half a season.

 

[Sean Thornton]

Does that mean that we get closer to £5m then as Spuds would have written off his transfer fee so the gross profit they need to calculate is nearer the £50m than the £47-48m margin?

I doubt it. I'd expect it tobe purely on actual costs and sale price. Otherwise our share would be more because the amount paid would have been reduced by amortisation. The accounting treatment Wouldnt be part of the contractual calculations.

 

[YES Blade]

Does that mean that we get closer to £5m then as Spuds would have written off his transfer fee so the gross profit they need to calculate is nearer the £50m than the £47-48m margin?

On another thread, someone said the Walker fee was £3m plus £1m in add ons, which we no doubt got the whole of that £1m with how he has performed at Spurs.

So it'll be £50m - £4m = £46m and 10% is £4.6m. (assuming the press reports are correct)

 

[IdLiketoRogerMoore]

Vat is applicable between UK clubs. As I've said, previous years losses, of which SUFC have millions of pounds worth, can be brought forward against current year profits.

Yes, I know that, but is VAT applicable in this instance as the payment is essentially just that. Its not actually for a goods or service, so would VAT be added in this instance?

 

[snootyfenooty]

We will pay 20% VAT on any profit we make in the transaction. VAT is payable at the point of sale. Any corporation tax is payable only if we make an overall company profit at the end of the tax year and would be an additional payment. Is this a correct assumption or not Sean Thornton ?

 

[Sean Thornton]

Yes, I know that, but is VAT applicable in this instance as the payment is essentially just that. Its not actually for a goods or service, so would VAT be added in this instance?

Yes. Without searching for a rather boring article in taxation magazine its to do with the provision of staff as an asset. Can't recall the exact wording but unless legislation has changed, and I don't believe it has, vat is chargeable.
The vat element doesn't affect the calculable profit in any event. It's whether the quoted fee includes vat or not. If it does, I guess we're getting 10% of 20/120 x £50m. For example (only).

 

[Sean Thornton]

We will pay 20% VAT on any profit we make in the transaction. VAT is payable at the point of sale. Any corporation tax is payable only if we make an overall company profit at the end of the tax year and would be an additional payment. Is this a correct assumption or not Sean Thornton ?

Yes. Save we won't be paying any Corporation tax soon with the losses we've clocked up.

Presumably we'd invoice Spurs plus Vat. They pay us and claim the vat back, we pay the vat over to HMRC.

 

[JJBlade]

That's kind of how I'm thinking with this one, it's very bitter sweet.

It's great to be getting the best part of £5m from a sell on clause and whilst transfer fees have gone crazy since 2009, it does make you wonder how much we could have made from Walker had we kept him another season or even half a season.

We'd have got the same amount
We don't do big transfers in or out

£5 million plus the original pittance he was sold for would be the highest amount we've ever received for an outgoing transfer and that will only come about as a result of a sell on clause, if we get it

 

[BushBlade]

That's kind of how I'm thinking with this one, it's very bitter sweet.

It's great to be getting the best part of £5m from a sell on clause and whilst transfer fees have gone crazy since 2009, it does make you wonder how much we could have made from Walker had we kept him another season or even half a season.

With the benefit of hindsight, at least £6m. I think that's what Everton offered for Naughton alone. If we assume that Walker would be at least as good as Naughton after six months to a year playing for us (he wasn't far off as it was, just a bit raw) then it's fair to assume he'd have been worth at least as much.

But what do you expect with someone like Blackwell in charge?

 

[More Bladier than thou]

Absolutely buzzing for Kyle. Would have preferred to see him at Barca, hes a great lad ,that sharrow kid has done allreyt for himself ! but he deserves better than spurs, who win nowt. Hope he comes home before the end of his career, good luck. Bossing the champs league next. UTB

 

[goatherder]

Absolutely buzzing for Kyle. Would have preferred to see him at Barca, hes a great lad ,that sharrow kid has done allreyt for himself ! but he deserves better than spurs, who win nowt. Hope he comes home before the end of his career, good luck. Bossing the champs league next. UTB

Yep good on Kyle...he'll be able to get himself a nice little Victorian terrace at Hunters Bar & commute over the Snake Pass each day. Much better than all that London traffic

 

[carthesis]

Kyle Walker is apparently worth less than Gylfi Sigurdsson... if you believe Swansea's valuation of him anyway?!

Madness.

 

[Russ]

Confirmed - 45 million plus add-ons it says on BBC sport website.

 

[Ron_Justice]

 

[YouFUMS]

Let's not be spending this 'windfall' before it's banked.
If Daniel levy can find a way to avoid coughing up, he will.
Did we get 10% of the 5m fee that Swansea paid spurs for Naughton? If so, then I can imagine that Levy will argue that, as Walker was just a make-weight in the 2 Kyles transfer, then he will say that they have already fulfilled the 10% sell on clause.
Hope I am way off the mark, but I don't see this being straight forward

 

[TarquinDelouche]

Reight. Let's go spend it all on scoffs.

 

[TJB.]

Confirmed - 45 million plus add-ons it says on BBC sport website.

Seen a paper (Independent, I think) reporting £50mil rising to £53mil.

Annoyingly we'll probably never know the true fee, or how much we're actually going to get from this.