Very little profit if any!

[Bladesmanstan]

After doing some research I don't think we will have made much profit at all since being in the PL which is worrying me for next season.

-£100M which includes buying assets off McCabe/loss of money due to covid.
-£135M of transfer fees (not including wages & bonuses).

+£132M for last season.
+£95M for this season (this is an estimation purely based on what Norwich received for finishing bottom last season).

Selling Berge is a must in the summer for £28M minimum.
£40M parachute payments coming our way in the 1st season.
£35M in the 2nd season.
£15M in the 3rd.

 

[MobileBlade]

I think you are getting cash mixed with asset purchase. Eg, ground cost £50m but club paying for it over 5 years is £10m plus interest in each years accounts. Players are paid for over the length of their contracts.

 

[bakeblade]

After doing some research I don't think we will have made much profit at all since being in the PL which is worrying me for next season.

-£100M which includes buying assets off McCabe/loss of money due to covid.
-£135M of transfer fees (not including wages & bonuses).

+£132M for last season.
+£95M for this season (this is an estimation purely based on what Norwich received for finishing bottom last season).

Selling Berge is a must in the summer for £28M minimum.
£40M parachute payments coming our way in the 1st season.
£35M in the 2nd season.
£15M in the 3rd.

As I posted on another thread, the transfer fees are amortised over the length of the players contract. Therefore your 135 million is actually less than 30 million per annum.

 

[Blade58]

As I posted on another thread, the transfer fees are amortised over the length of the players contract. Therefore your 135 million is actually less than 30 million per annum.

Well that's ok then

Wonder where the £30m is coming from in year 3, 4 and 5?

 

[JackSUFC]

Well that's ok then

Wonder where the £30m is coming from in year 3, 4 and 5?

Promotion back to the Prem

 

[JPSharpy93]

Not forgetting our cheeky FA Cup prize money and European campaign thereafter

Promotion back to the Prem

 

[BushBlade]

Well that's ok then

Wonder where the £30m is coming from in year 3, 4 and 5?

Payments are sometimes spread over time and I suspect some of ours are but when accountants refer to the amortisation of players’ transfer fee they usually mean

Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use, which shifts the asset from the balance sheet to the income statement. It essentially reflects the consumption of an intangible asset over its useful life. Amortization is most commonly used for the gradual write-down of the cost of those intangible assets that have a specific useful life. Examples of intangible assets are patents, copyrights, taxi licenses, and trademarks. The concept also applies to such items as the discount on notes receivable and deferred charges.

It can be confusing because the same term can be used in respect of paying off a loan, so your scheduled payments are referred to as an amortisation schedule.

 

[JJBlade]

It still won't stop us being skint though
They should rename the club, they'd only have to swap a couple of letters
Sheffield Skinted

 

[Houston_Blade]

It still won't stop us being skint though
They should rename the club, they'd only have to swap a couple of letters
Sheffield Skinted

I thought I was miserable this week but you’re bartering me at the moment. I still can’t see a picture of Wilder without welling up though so I’m in the 2nd stage of grief I reckon.

 

[JJBlade]

I thought I was miserable this week but you’re bartering me at the moment. I still can’t see a picture of Wilder without welling up though so I’m in the 2nd stage of grief I reckon.

There's worse things going on in the world, even without Covid.

I always find sarcasm is the best way to deal with Sheffield United fuck ups

Laugh at them, they deserve your ridicule as well as mine

 

[Bearlie]

28 million for berge ??
I will be astounded if we get that ....

 

[SilkyBlade]

After doing some research I don't think we will have made much profit at all since being in the PL which is worrying me for next season.

-£100M which includes buying assets off McCabe/loss of money due to covid.
-£135M of transfer fees (not including wages & bonuses).

+£132M for last season.
+£95M for this season (this is an estimation purely based on what Norwich received for finishing bottom last season).

Selling Berge is a must in the summer for £28M minimum.
£40M parachute payments coming our way in the 1st season.
£35M in the 2nd season.
£15M in the 3rd.

1. The 2020 accounts (trading year ‘19) confirm cost of purchasing assets will be around £43.5M.
2. Estimated cost of COVID £20M.
3. £20M loss from 18/19 season due to player bonuses/ loans etc.
4. Net PL transfer fees are c£112M.
5. PL bottom placed money ‘18 £93M, ‘19 £96.5M, ‘20 likely to be £100M.
5. Parachute Payments are 55% (£55M), 45% (£45M) and 20% (£20M)
6. You haven’t included match day revenue (c£8Mpa) sponsorship, advertising (£4M in championship so would have increased significantly in PL) plus EFL broadcasting revenue kicks back in (c£8Mpa in ‘19 season so again will have increased) say additional £25Mpa
7. c£450M revenue over 5yr PL period.
8. First team PL wages (c£19mpa) reducing in line with relegation. ‘18 season entire club wages (lion share of op costs) at £18mpa rising to £40M in ‘19 season due to promotion bonuses. Assume £25Mpa for club (c200 employees) on reduced wages.
9. Conclusions: 1. we definitely do not need to sell Berge to be financially secure 2. Spend a bit more time on your research.

 

[Sean Thornton]

I think you are getting cash mixed with asset purchase. Eg, ground cost £50m but club paying for it over 5 years is £10m plus interest in each years accounts. Players are paid for over the length of their contracts.

Tangible Asset purchases aren’t charged to profit and loss account. It’s unlikely there will be a depreciation charge so it’s just the annual loan interest.

 

[Houston_Blade]

28 million for berge ??
I will be astounded if we get that ....

£15m max I reckon. Most clubs know we’re soft as shit and we’ll be desperate.

 

[Bearlie]

£15m max I reckon. Most clubs know we’re soft as shit and we’ll be desperate.

Yea 10 / 15 mill

 

[Sportbilly /Detroit Blade]

Payments are sometimes spread over time and I suspect some of ours are but when accountants refer to the amortisation of players’ transfer fee they usually mean

Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use, which shifts the asset from the balance sheet to the income statement. It essentially reflects the consumption of an intangible asset over its useful life. Amortization is most commonly used for the gradual write-down of the cost of those intangible assets that have a specific useful life. Examples of intangible assets are patents, copyrights, taxi licenses, and trademarks. The concept also applies to such items as the discount on notes receivable and deferred charges.

It can be confusing because the same term can be used in respect of paying off a loan, so your scheduled payments are referred to as an amortisation schedule.

That took me back to my CIMA accountancy textbooks

 

[Sportbilly /Detroit Blade]

Payments are sometimes spread over time and I suspect some of ours are but when accountants refer to the amortisation of players’ transfer fee they usually mean

Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use, which shifts the asset from the balance sheet to the income statement. It essentially reflects the consumption of an intangible asset over its useful life. Amortization is most commonly used for the gradual write-down of the cost of those intangible assets that have a specific useful life. Examples of intangible assets are patents, copyrights, taxi licenses, and trademarks. The concept also applies to such items as the discount on notes receivable and deferred charges.

It can be confusing because the same term can be used in respect of paying off a loan, so your scheduled payments are referred to as an amortisation schedule.

That took me back to my CIMA accountancy textbooks

 

[bakeblade]

Well that's ok then

Wonder where the £30m is coming from in year 3, 4 and 5?

We'll have sold them before that

 

[Harrisblade]

1. The 2020 accounts (trading year ‘19) confirm cost of purchasing assets will be around £43.5M.
2. Estimated cost of COVID £20M.
3. £20M loss from 18/19 season due to player bonuses/ loans etc.
4. Net PL transfer fees are c£112M.
5. PL bottom placed money ‘18 £93M, ‘19 £96.5M, ‘20 likely to be £100M.
5. Parachute Payments are 55% (£55M), 45% (£45M) and 20% (£20M)
6. You haven’t included match day revenue (c£8Mpa) sponsorship, advertising (£4M in championship so would have increased significantly in PL) plus EFL broadcasting revenue kicks back in (c£8Mpa in ‘19 season so again will have increased) say additional £25Mpa
7. c£450M revenue over 5yr PL period.
8. First team PL wages (c£19mpa) reducing in line with relegation. ‘18 season entire club wages (lion share of op costs) at £18mpa rising to £40M in ‘19 season due to promotion bonuses. Assume £25Mpa for club (c200 employees) on reduced wages.
9. Conclusions: 1. we definitely do not need to sell Berge to be financially secure 2. Spend a bit more time on your research.

You can spend as much time on research as you want, but if you don't actually understand what you're researching, it won't help

 

[Snowflake]

I think you are getting cash mixed with asset purchase. Eg, ground cost £50m but club paying for it over 5 years is £10m plus interest in each years accounts. Players are paid for over the length of their contracts.

In addition we now have player assets worth far more than when we were promoted.

 

[Kenilworth]

1. The 2020 accounts (trading year ‘19) confirm cost of purchasing assets will be around £43.5M.
2. Estimated cost of COVID £20M.
3. £20M loss from 18/19 season due to player bonuses/ loans etc.
4. Net PL transfer fees are c£112M.
5. PL bottom placed money ‘18 £93M, ‘19 £96.5M, ‘20 likely to be £100M.
5. Parachute Payments are 55% (£55M), 45% (£45M) and 20% (£20M)
6. You haven’t included match day revenue (c£8Mpa) sponsorship, advertising (£4M in championship so would have increased significantly in PL) plus EFL broadcasting revenue kicks back in (c£8Mpa in ‘19 season so again will have increased) say additional £25Mpa
7. c£450M revenue over 5yr PL period.
8. First team PL wages (c£19mpa) reducing in line with relegation. ‘18 season entire club wages (lion share of op costs) at £18mpa rising to £40M in ‘19 season due to promotion bonuses. Assume £25Mpa for club (c200 employees) on reduced wages.
9. Conclusions: 1. we definitely do not need to sell Berge to be financially secure 2. Spend a bit more time on your research.

Which means we could have invested in the academy and the training facilities without pushing the boat out too much. Progress would have been made to get towards level 1 academy status. With those things in place and action being taken I feel Wilder would have been less inclined to kick off and rock the boat to the extent we find ourselves at the end of this incredible journey.
pisses me off that we can’t look forward to many more years of it and the legacy that would have resulted from it.
IMO Prince has fucked it on something that he should be doing anyway and wouldn’t be over stretching the budget. It would only add to the value of the club. Very short sighted IMO.

 

[Sean Thornton]

Which means we could have invested in the academy and the training facilities without pushing the boat out too much. Progress would have been made to get towards level 1 academy status. With those things in place and action being taken I feel Wilder would have been less inclined to kick off and rock the boat to the extent we find ourselves at the end of this incredible journey.
pisses me off that we can’t look forward to many more years of it and the legacy that would have resulted from it.
IMO Prince has fucked it on something that he should be doing anyway and wouldn’t be over stretching the budget. It would only add to the value of the club. Very short sighted IMO.

Cashflow.

 

[SilkyBlade]

Which means we could have invested in the academy and the training facilities without pushing the boat out too much. Progress would have been made to get towards level 1 academy status. With those things in place and action being taken I feel Wilder would have been less inclined to kick off and rock the boat to the extent we find ourselves at the end of this incredible journey.
pisses me off that we can’t look forward to many more years of it and the legacy that would have resulted from it.
IMO Prince has fucked it on something that he should be doing anyway and wouldn’t be over stretching the budget. It would only add to the value of the club. Very short sighted IMO.

I think even more so now. I actually completely agree with boards planned strategy to focus on developing youth system. It’s a sustainable, albeit longer term, way of achieving more sustained success. I really don’t want to see us paying crazy fees for players with potential and no doubt even Wilder couldn’t believe what he was having to pay!

I completely understand the point that some fans would have gone crazy if we were spunking muneh on the training/academy instead of transfers but in taking a longer term view I think the upgrade of these facilities (cap ex outlay not that expensive as modular construction) is now critical to attract the talented youth players (they do tend to be very materialistic!) If we are paying similar market wages/contracts then an all singing, all dancing training set up will likely give us a competitive advantage.

 

[bakeblade]

1. The 2020 accounts (trading year ‘19) confirm cost of purchasing assets will be around £43.5M.
2. Estimated cost of COVID £20M.
3. £20M loss from 18/19 season due to player bonuses/ loans etc.
4. Net PL transfer fees are c£112M.
5. PL bottom placed money ‘18 £93M, ‘19 £96.5M, ‘20 likely to be £100M.
5. Parachute Payments are 55% (£55M), 45% (£45M) and 20% (£20M)
6. You haven’t included match day revenue (c£8Mpa) sponsorship, advertising (£4M in championship so would have increased significantly in PL) plus EFL broadcasting revenue kicks back in (c£8Mpa in ‘19 season so again will have increased) say additional £25Mpa
7. c£450M revenue over 5yr PL period.
8. First team PL wages (c£19mpa) reducing in line with relegation. ‘18 season entire club wages (lion share of op costs) at £18mpa rising to £40M in ‘19 season due to promotion bonuses. Assume £25Mpa for club (c200 employees) on reduced wages.
9. Conclusions: 1. we definitely do not need to sell Berge to be financially secure 2. Spend a bit more time on your research.

Good work, mate. Everyone knows that getting to the premier league is the holy grail moneywise, so after spending 2 years there it would be totally unexceptable to find out we are skint.

 

[gordoncharles]

Norwich City made a grand total of £2m last season. Their operating profit before player trading and amortisation was £11m.

That's non-spending, hoard-the-PL-cash Norwich City.

Two million.

 

[DI36O]

1. The 2020 accounts (trading year ‘19) confirm cost of purchasing assets will be around £43.5M.

Is this what the courts said he had to buy from McCabe? Can someone explain to me why the club has to provide the money for this rather than the owner? Not having a dig at him, I genuinely don't know.

 

[guancheblade]

After doing some research I don't think we will have made much profit at all since being in the PL which is worrying me for next season.

-£100M which includes buying assets off McCabe/loss of money due to covid.
-£135M of transfer fees (not including wages & bonuses).

+£132M for last season.
+£95M for this season (this is an estimation purely based on what Norwich received for finishing bottom last season).

Selling Berge is a must in the summer for £28M minimum.
£40M parachute payments coming our way in the 1st season.
£35M in the 2nd season.
£15M in the 3rd.

We won't get back more than we paid for with Berge, probably less in fact

 

[Balham]

£15m max I reckon. Most clubs know we’re soft as shit and we’ll be desperate.

Yea 10 / 15 mill

We won't get back more than we paid for with Berge, probably less in fact

I'm prepared to be wrong on this but there is no way we will sell a coveted young midfielder with three years left on his contract for less then we paid 18 months ago. It's just not happening.

£30m+.

 

[Nosworthys Throw]

I don't reckon he'll leave in this window.

1. Because i think hes been shit.
2. Because hes just had a nasty injury, id imagine you'd want see if he can kick a ball straight and run around still before you get the wallet out.

Can see him going next January tho.

 

[nicksufc]

Call me crazy, but I think it's probably better to a) wait for the actual accounts to be released and b) get an actual accountant to look over them, before claiming things like 'selling Berge is a must in the summer for £28M minimum.'