Whitey Grandad

Dividends are paid out of profits after tax has been deducted. They cannot be offset against profits, and can only be paid out if the company has made a profit. As you say, the club needs to be careful to spread a sudden windfall over several years, but by the same token that money is not instantly available, unless our purchase are structured the same way. When did SFC last sell £20m of assets for £92m?

First a disclaimer: Premier League football club accounting is devilishly complicated and involves some of the most imaginative accountants on the planet, but in basic terms Corporation Tax is liable on any profits made over the accounting year of the company. The figures that gave been quoted for the sales are the maximum figures for the deals with supplements for future achievements, e.g. Calum Chambers is £16m rising to £20m. Secondly we are not told whether these are cash on delivery or staged payments over several years. Players we have previously 'bought' have the capital value of their contracts written down over the length if the contract but players we have developed through the academy have no capital value so the £16m for Chambers would appear as all profit and subject to tax at 21% for the current tax year. Lovren was bought for £8.5m written down after one year to £6.375m but sold for £20m so a profit of £13.625m. Shaw is pure profit at a reported £27m. Lallana is a complicated deal but we might clear £12m or so after Bournemouth have their share. So, back to your question, a headline sales figure of £92m or so but cash in the bank a fraction of that, maybe £60m up front, less their book value of probably less than £10m for Lambert, Lovren and Lallana would make a notional profit of £50m or potentially £39.5m after tax. This is extra to what our trading position would have been but is comfortably better than a lot of other clubs but leaves us temporarily short of players. If we buy new ones then we are replacing players who had a low value in the existing books with new ones who have a much higher one and whether we keep the cash or spend it the value of the company will increase and hence the tax liability, unless you can offset it against other losses, Osvaldo perhaps. My guess, for what it's worth, £30m to £50m for buying contracts of which we have already spent £20m. The club may have already budgeted some funds for purchases, of course

No it isn't, nothing like it.

Over £50m, and even that is light for Premier League clubs. And don't forget that tax on these profits we have made (I keep repeating this and I'm beginning to sound like and old grandad).

Here's a tip, Sue, for all those who use iPads/iPhones. If you let your finger rest on the letter on the keypad then all the accented options will pop up and you can slide your finger across to the one you want.

Yes, interesting, thanks for that.

Happy Birthday Maddy, 65 today! That makes her only a couple of weeks younger than me http://www.eastlothiannews.co.uk/webimage/1.3395400.1398942155!/image/2310961045.jpg_gen/derivatives/articleImgDeriv_628px/2310961045.jpg http://www.eastlothiannews.co.uk/news/5-minutes-with-actress-madeline-smith-who-starred-in-hammer-horror-productions-was-a-bond-girl-in-live-and-let-die-and-appeared-in-the-persuaders-1-3395401

Quite right, that would be reckless and the net figure will be less than that anyway. Much more likely.

Did I miss something?

That certainly is the impression that I get. I suppose that time will tell.

Fair point, fairly taken.

Wasn't it water-carrier or something like that? Maybe hod-carrier: http://www.theguardian.com/football/2006/aug/19/sport.comment2

Might be worth a punt if he's cheap. Bit of a show pony but I'm sure that can be drilled out of him.

Er... hello? I have said this before more than once. He (Shaw) has great promise but a lot to learn.

'When I use a word, it means just what I choose it to mean — neither more nor less.' Humpty-Dumpty

The Daily Mail is having a big campaign against this sort of thing at the moment.

Nice! It made be chuckle. 'They can't pass medicals if you break their legs', brilliant!

Thank you sir, much appreciated.

His value would already have been written down by then. Players' values are written down over the length of their contracts which is why their is usually a loan fee to cover the reduction in their value during the period of the loan.

You already write off their wages anyway. Unless you have capitalised their contracts, i.e. given them a value in your books, then there would be no advantage.

I reckon there's a tax reason to do with capital purchases. The loan fees can be offset directly against profits.

Very good, I love it. How did he do his knee, by the way, one too many Cruyff turns?

Hi Phil, good to hear from you. Do you really expect us to believe that you took your Mrs to Thailand, to Bangkok? Love the badge, where can I buy one?

Patience, Timothy, patience!

Was it 'an amazing journey #saintsfc DESTROYED in 1 hour'?