This is just a collection of some of the Tweets I’ve made recently, collected into one place for me to reference.
Transfer Fees do NOT equal PROFIT to reduce FFP
A Look At FFP Effect of Pontus Leaving
Reported transfer fees often do not reflect the actual cash that a club ends up with. Sometimes newspapers include VAT and a players wages over the contract and all contingent bonuses into the figure they report so it is best to treat with a pinch of salt.
This is a short look at how little cash Leeds could end up with when Brentford say it has cost them £4million to buy him – I do not include wages etc in this analysis.
Where are Leeds with respect to FFP – written earlier in the transfer window
This is my broad estimate of FFP for last season – up to the end of the 2018/19 season. It shows we comfortably passed FFP and were comfortably clear of any points deductions but we are likely to have had to provide Future Financial Forecasts (also called ‘Budgets’) for the next two seasons to show we can comply in the future. No further sanction against us needed if we keep to good management and planning.
This is my even broader estimate of how the Leeds FFP picture could change if we didn’t manage Club finances with FFP in mind. I’ve assumed no player sales but have allowed for increases in wages for key players, such as Kalvin and Kemar etc., plus some loans fees and wages being spent to bring in more players, etc.
Obviously, this scenario will never actually happen just like this because we have sold some players to ease FFP concerns and Kemar has left.
What are Administrative Expenses?
This chart is composed of some real Leeds United figures and some data from another Championship Club, modified by myself using my experience and wider reading of club finances.
It is NOT an attempt to mimic the actual management accounts of Leeds United and I do not put it forward for that purpose. I offer it solely as a guide to some of the costs that a Championship club of the size of Leeds United could incur.
Mike Thornton – collected together 6th August 2019