23 Jun 2024 22:29:00
In reply to Oceandrive re EFC and Villa buying off each other. Think the benefit in those deals is each team sold the other an academy player so all of transfer fee is profit. For the selling team. when you buy another player you can spread the cost over the duration of the contract. So for us. Say we got 9/ 10 million for Dobbin. That’s pure profit for PSR calculations. Then we bought Tim from Villa for similar price on three year contract. So around 3M a year so by selling Dobbin this year for PSR just on those two players EFC can put 6/ 7 M towards PSR. (Depends if he was 9 or 10M to buy) Hope all that makes sense. That’s my understanding of it anyway. Jack.
23 Jun 2024 22:45:01
Nice one jack, that makes more sense so therefore the Newcastle dcl and mintee deals must be unrelated as they aren’t academy players.
23 Jun 2024 23:25:35
Not quite Ocean. The academy aspect just means that the money coming in is pure profit. Deals can still be done that are favourable to clubs even if they aren't academy players.
The benefit for clubs would be by selling a player e.g us with Dom, selling him for say £15 million. All of that fee, minus the £1.5 we initially paid for him, will be coming into the club as profit for PSR. Where as signing young Tim on a 3 year deal at £9m would mean the cost would be split over the length of his contract, so much less of hit going against PSR.
The same the other way with Villa. 9m in for Tim and then whatever they sign Dobbin for would be split over his contract length.
Ed's I am not 100% sure if that is how it works so please correct if I am wrong on that.
{Ed001's Note - why would the £1.5m be of any relevance? That is not how it works at all. That will have long been written off over the course of his contract. The stuff that comes out of it is things such as agent fees, the 5% of the transfer fee that goes to the clubs that developed him as a youngster, the 5% that goes to the player, solicitor fees etc. The academy aspect just means a club keeps an extra 5% of the fee that will otherwise go to the club/s whose academy/s the player spent time at.
If it is a recently signed player, who fee is being split for accounting purposes over his contract and still has a couple of years left to be written off, then you would have that to come out of the 'profit'.}
24 Jun 2024 14:55:58
Quite a bit in the press about these 'odd' transfers between Villa and us. Suggesting that we've exploited a loophole.