BFC Accounts 2019/20

Give it time.

 

Payments are generally over the course of a players contract, anything outstanding for the player is shown in debtors/creditors depending on whether its buying or selling. But the transfer value is accounted for straight away with add ons being recognised later at the time they are triggered. The value of the player is then "amortised" (or depreciated) over the course of his contract which appears in the profit and loss account. Though from what Archerfield has pointed out, some clubs are aggressively amortising or discounting player values this accounting period gone to show a huge loss this year under the guise of covid so they have more wriggle room next accounting period.

 

Didn’t he fail a medical at Cardiff earlier in the summer?
Might have got club wrong

 

How bad are Stoke’s recruitment team when they could have spent another half a million and got a 10x better player?!

 

I feel like I've been giving it time for too long already. Not that I want any club to completely disappear, but unless that starts happening I don't see anything changing and our club will be forever kicking uphill.

 

We're seeing a lot of clubs "in distress" and their current owners desperately trying to find loopholes to keep them trading or evading punishment. It's biting. Covid has certainly exacerbated it.

Though there is an irony that we'll be hindered in our strategy when debt does bite fully. Because there will be less clubs to buy our players.

 

That's an interesting way of doing it. I'm talking about the amounts we receive from clubs who buy our players. I've just had another look and unless I am reading it wrong the accounts only show Debtors with sums falling due in the 12 months after the balance sheet date. If a chunk of the transfer instalment fell beyond this how could it be accounted within that period? Whilst football is an odd case, what would happen if the other side reneged because of liquidation (eg Bury) If the club were to make a profit wouldn't the corporation tax be due on income within that accounting period, not beyond it? Like somebody else said, accountancy is boring usually unless it comes to football.
And if you're a Wednesday fan, accounts publication day produces more visceral swings of despair and excitement than a penalty shoot out!

 

The balance sheet should show debtors within 12 months and over 12 months, as it will creditors (there will also be a note to the accounts too).

If we weren't paid for something (if it came to that), it would likely be shown as a bad debt write off and we'd incur a loss.

And though there are allsorts of aspects to consider when it comes to the Corporation tax computation, you only pay Corporation Tax on your profits in the year, if you have retained profits and you can't offset against past losses. A current practicing accountant will be able to tell you whats what with allowing for bad debt write offs in the Ctax comp and offsetting tax if necessary.