Having read the other thread about the accounts, I just thought that I would clear up a number of misunderstandings about the numbers contained in the accounts that are reported in that thread. Transfer fees receivable in the year to May 2013 as reported in the accounts are £3,237,387. Individual fees are not reported. This number represents the whole of the agreed fee but the increase of £665,343 in Trade Debtors suggests that at least part of the agreed fees have not been paid yet. Any add on clauses dependent upon player performance negotiated on any of the player sales will not be included in the figure for transfer fees until such time as it becomes payable. The club spent only £175,000 on transfer fees and signing on fees in the year. These are written off to the Profit and Loss account over the length of the player's contract. At the end of 2013, the amount still to write off on fees paid in this and previous seasons was down to only £224,949. This represents the only figure in the accounts that reflects the value of current player contracts. Players who have not been paid a signing on fee or for whom a transfer fee has not been paid do not have a balance sheet value at all. In this respect, football clubs under-represent the total value of their assets on their balance sheets. During last year the club generated a cash surplus of £2,374,844. This was used as follows: Increase in Trade Debtors £575,016 Decrease in Trade Creditors £697,466 Transfer and Signing on Fees £175,000 Fixed Assets £39,083 Repayment to Owner £69,648 Reduction in Bank Overdraft £818,631 I hope that this clarifies some of the mistaken comments that were made in the previous thread.
