eire-red
Full Member
- Joined
- Aug 9, 2018
- Messages
- 2,654
https://www.google.com/amp/s/www.sk...-rules-to-be-replaced-as-early-as-this-summer
Just in case anybody has not seen this. Seems to be moving away from the accumulated losses to a cost to revenue ratio.
Will be interesting to see what effect these new rules will have. I did find the rule focusing on net profit / losses to be a bit odd in some cases, because the 'loss' on amortizing player value is not an actual cash expense / cash drain on a club, although it clearly gives an idea on what kind of investment needs to be sustained in a squad.
Like for example, clubs could take a big "book loss" on selling a player at a big discount to purchase price, although that's essentially cash in / wages saved etc etc.. the "loss" is essentially just the mechanics of accounting as the cash outlay has already been accounted for if the fee is up-front, or at least front-loaded with installments over a year or two.
I don't think it's logical to have those kinds of situations included in the PSR, and opened up too many avenues for accounting manipulation, such as Chelsea with 7 / 8 year contracts. This seems like a more intuitive and logical way forward, however it tilts the hand back in favour of the incumbents once more.
Just in case anybody has not seen this. Seems to be moving away from the accumulated losses to a cost to revenue ratio.
Will be interesting to see what effect these new rules will have. I did find the rule focusing on net profit / losses to be a bit odd in some cases, because the 'loss' on amortizing player value is not an actual cash expense / cash drain on a club, although it clearly gives an idea on what kind of investment needs to be sustained in a squad.
Like for example, clubs could take a big "book loss" on selling a player at a big discount to purchase price, although that's essentially cash in / wages saved etc etc.. the "loss" is essentially just the mechanics of accounting as the cash outlay has already been accounted for if the fee is up-front, or at least front-loaded with installments over a year or two.
I don't think it's logical to have those kinds of situations included in the PSR, and opened up too many avenues for accounting manipulation, such as Chelsea with 7 / 8 year contracts. This seems like a more intuitive and logical way forward, however it tilts the hand back in favour of the incumbents once more.