22 Apr 2025 22:25:49
For those interested in FFP/ PSR information can i suggest a quick glance at the Man Utd page. Under the "Banter" heading there is a very good and easy to read post on the subject from "Phillip. ".
23 Apr 2025 09:06:07
16:39:22
? 1. Amortization in Football Transfers In football, amortization refers to how a player’s transfer fee is spread over the length of their contract for accounting purposes. Example: Let’s say a club buys a player for £60 million on a 5-year contract. In the accounts, this transfer is amortized at £12 million per year (60 ÷ 5). So even though £60m might be paid upfront or in installments, the books only show £12m in each financial year. This helps clubs manage their books under PSR (more on that in a sec) .
? 2. What is PSR (Profit and Sustainability Rules)? Premier League clubs must follow rules that limit how much they can lose financially over a 3-year period. Currently, the PSR limit is £105 million in allowable losses over 3 years (i. e. £35m per year) . Certain costs are excluded like infrastructure, youth development, women’s football, and community projects. But transfer fees, wages, and agent fees are all included. Clubs must show they’re staying within these rules, or face penalties like points deductions (see Everton or Nottingham Forest) .
? 3. Why Selling Homegrown Players Like Rashford is Powerful This is where it gets juicy. When you sell a homegrown player (someone developed through your youth system, like Rashford), there is no amortized cost—they're essentially recorded in the books as having £0 cost because the club didn't buy them. So if United sell Rashford for £60 million: The entire £60 million counts as immediate profit for PSR purposes. Compare that to buying a player for £60 million on a 5-year deal—it only costs £12 million per year in the accounts. So: Selling Rashford: +£60m profit in Year 1. Buying three players at £60m each: -£36m total amortized cost in Year 1. That’s where your “3x what we can spend” logic comes in. For every £1 of homegrown sale, a club might be able to responsibly spend £3-4 in transfer fees (spread across contracts) and still meet PSR.
Philip_hunter2003.
23 Apr 2025 09:21:50
Greenaway, thanks. There is no way I could have done that. Old git syndrome.
23 Apr 2025 09:36:56
Mecneither Tom lol.
Hope you are feeling better today.
23 Apr 2025 09:50:32
As usual you are all being very kind but I’m ok. I’m desperate to get to the Everton game so I’m trying to take it easy ish pre match. The lads need all the vocal support they can get.
23 Apr 2025 13:14:02
Hope you get to ho Tom, it certainly will be a tough game, glad their CH, Tarks is out.
23 Apr 2025 18:34:50
Silly system. Signing player A for 60m amortised still loses the club money. Yes it's a 'FFP profit' but it's still a loss.
23 Apr 2025 19:11:13
For lots of reasons I have given in previous posts. I’m not a fan of FFP/ PSR as they stand.