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š Tifo's new book, "How to Watch Football" is now available internationally: linktr.ee/tifobook
Due to the Premier League's financial rules, some clubs have been swapping players to balance their books.
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50 Comments
Top Comments of this video!! :3
It's basically a matter of smart accounting. This fight will keep going as FFP tries to stop teams from bending the rules or breaking them. When one loophole is closed, big clubs just get their accountants to find another. You have to wonder what the Premier Leagueās lawyers are doing. If club lawyers keep finding these loopholes, why arenāt the leagueās lawyers spotting them first? This has been happening for years..just look at how Man City has sold some of their young players for high prices. The real issue is that other clubs are starting to do the same. If the goal is to help academy players grow, the rules should make it better for teams to keep them instead of selling them. Iām also worried about the problems with Man City that havenāt been solved yet. Thereās talk of inflated sponsorships and paying players under the table. I think itās time for a salary cap. Clubs keep finding ways to bend the rules with fake sponsorships and overpriced transfers, and the Premier League only enforces its rules when it wants to. The league is getting boring and needs a big change. The Premier League is at an important turning point for the future of football . Sky is losing customers fast, and the value of TV rights is dropping every year. Iād prefer the government step in rather than let clubs be owned by people who donāt care about the long-term future of the game.
272 |
For anyone wondering how it works, itās amortisation. You get to spread the value of the incoming player over the length of their contract. So Villa spent 10m on a player with a 5 year contract so have spent 2m this season in the books (and each of the next 4 seasons), whilst they sold a player for 9m that gets banks this season. So whilst actually spending 1m more, in the accounts they have made 7m this summer.
This also has the effect of making big money transfers harder. Look at Chelsea with Lukaku for example. Chelsea couldnāt sell Lukaku last summer because he had only been there for 2 years meaning he had 60m of fees to pay off in accounts. So if he stayed, he had 20m to amortise, if they sold him for 30m, it was an accounting loss of 30m so Chelsea would have ālostā 10m more in their books. This summer they only got 25m but he only had 40m accounting value to amortise, so Chelsea only ālostā 15m instead of 20m, so they booked a āprofitā of 5m in spite of getting less money.
93 |
Yeah this exact reason tactic got juventus into big troubles 2/3 years ago
3 |
If you sell a player with no book value (a youth player for example) for Ā£20m, youāre able to record a Ā£20m PSR profit. If you then buy another player for Ā£20m, youād amortise that cost over the length of the contract (usually 5 years) so youād record a PSR cost of only Ā£4m per year. Ā£20m in, Ā£4m out, despite both players in this instance having the same nominal value. Meaning you have another Ā£16m to spend elsewhere. Simple.
15 |
This is why I love The Athletic. Such great content!
45 |
These PSR rules are bad for academy š Gallagher didn't wanted to leave his club and the fans loved him but becuz of these BS rules forcing clubs to let go their academy players and treat them like bag of cash $š¤Ø
1 |
PSR is ruining youth academy graduation
1 |
In other words, rather than encouraging clubs to keep homegrown talent and to play them, PSR has created a perverse incentive for clubs to sell youngsters in order to the same sort of deals theyād have done without any financial restrictions to begin with.
1 |
A fee was payed for iroegbunam or however itās spelt he was signed from westbrom for a mil or so
1 |
Psr was created to stop city. Now itās hindering everyone else š
1 |
This will work for a season or two, but you will reach a point where there is such a backlog of money owed, that if you don't keep producing players people want you are in real trouble.
|
I really don't understand this - surely if you sell someone for 10m but buy someone for 9m the profit on the books is only 1m? Feel like I'm really missing something here š
4 |
How long till there's a Premier League draft ? š
18 |
Chelsea and villa didn't do any swap
|
But you have to pay their wage doesnāt that get subtracted?
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So it's cooking the books legally. Interesting
|
Great, itās literally ruining football
1 |
This is what Juve did with Arthur and pjanic
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Damn I caught this short early
3 |
@ĪĻĪ½ĻĻĪ±Ī½ĻĪÆĪ½ĪæĻĪ Ī±ĻĪ±Ī½Ī±ĻĻĪ±ĻĪÆĪæĻ -Ļ 8Ļ
2 months ago
This is straight up the only reason we brought Kellyman
371 |