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    Can you imagine if Wolves spent 34 Mill on a player this window?

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    Manchester Ram

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    Can you imagine if Wolves spent 34 Mill on a player this window?

    Post by Manchester Ram on Wed 17 Jan 2018, 12:33 pm

    Was this ever a serious rumour? How could it ever be possible? Unless FFP takes into account promotion which they have bar the shouting. Mental!

    http://www.derbytelegraph.co.uk/sport/football/football-news/andre-silva-wolves-transfer-gossip-1077173
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    MadAmster

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    Re: Can you imagine if Wolves spent 34 Mill on a player this window?

    Post by MadAmster on Wed 17 Jan 2018, 12:45 pm

    Porto to Milan to...... Swansea or Wolves.

    I would think that move is not going to happen.
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    CornwallRam

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    Re: Can you imagine if Wolves spent 34 Mill on a player this window?

    Post by CornwallRam on Wed 17 Jan 2018, 1:11 pm

    Manchester Ram wrote:Was this ever a serious rumour? How could it ever be possible? Unless FFP takes into account promotion which they have bar the shouting. Mental!

    http://www.derbytelegraph.co.uk/sport/football/football-news/andre-silva-wolves-transfer-gossip-1077173

    It is actually possible for them to spend £34m and stay within FFP, but it represents a significant on going risk.

    Assuming that £34m includes the fees and he signs on a 4.5 year deal. Accounting rules have changed this year so clubs can set a residual value on players, rather than a straight division of fee divided by years of the contract. They do have to write off the fees in year 1, but I assume that this will run over to next season - indeed, buying expensive players in January is quite a good way spreading out the FFP liability.

    I reckon his FFP cost could, in this scenario be -

    17/18 - £5m
    18/19 - £10m
    19/20 - £9m
    20/21 - £7m
    21/22 - £3m

    That would mean that he'd 'only' cost £5m this season and clubs can lose up to £13m. Assuming that Wolves budgeted properly and left a £2m margin for error, it's not unbelievable to think that their success has netted £3m more in TV money, advertising, merchandise etc.

    If they get promoted then next season's £10m is irrelevant as once out of the EFL, FFP  no longer applies outside of European competition. If they don't then things could get tricky. Unless they could get at least £29m for Silva, they have to sell on some players for a significant profit to bring things back into line.

    Even if they couldn't, with FFP now being taken over a rolling three year period, assuming they've not gone over in past seasons, they could run with a zero sum transfer policy for two seasons and not suffer any penalties.


    Last edited by CornwallRam on Thu 18 Jan 2018, 11:59 am; edited 3 times in total
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    SawleyRam

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    Re: Can you imagine if Wolves spent 34 Mill on a player this window?

    Post by SawleyRam on Wed 17 Jan 2018, 10:24 pm

    CornwallRam wrote:
    Manchester Ram wrote:Was this ever a serious rumour? How could it ever be possible? Unless FFP takes into account promotion which they have bar the shouting. Mental!

    http://www.derbytelegraph.co.uk/sport/football/football-news/andre-silva-wolves-transfer-gossip-1077173

    It is actually possible for them to spend £34m and stay within FFP, but it represents a significant on going risk.

    Assuming that £34m includes the fees and he signs on a 4.5 year deal. Accounting rules have changed this year so clubs can set a residual value on players, rather than a straight division of fee divided by years of the contract. They do have to write off the fees in year 1, but I assume that this will run over to next season - indeed, buying expensive players in January is quite a good way spreading out the FFP liability.

    I reckon his FFP cost could, in this scenario be -

    17/18 - £5m
    18/19 - £10m
    19/20 - £9m
    20/21 - £7m
    21/22 - £3m

    That would mean that he'd 'only' cost £5m this season and clubs can lose up to £13m. Assuming that Wolves budgeted properly and left a £2m margin for error, it's not unbelievable to think that their success has netted £3m more in TV money, advertising, merchandise etc.

    If they get promoted then next season's £10m is irrelevant as once out of the EPL FFP  no longer applies outside of European completion. If they don't then things could get tricky. Unless they could get at least £29m for Silva, they have to sell on some players for a significant profit to bring things back into line.

    Even if they couldn't, with FFP now being taken over a rolling three year period, assuming they've not gone over in past seasons, they could run with a zero sum transfer policy for two seasons and not suffer and penalties.

    The above being right (of which I have no reason to doubt) means that the January transfer window now becomes more important financially than any summer purchase in the EFL for any of the clubs in serious contention for promotion, another side effect of FFP.
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    Stockport Ram

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    Re: Can you imagine if Wolves spent 34 Mill on a player this window?

    Post by Stockport Ram on Wed 17 Jan 2018, 11:32 pm

    I've just had to take an extra paracetamol...

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