TSI - The Promises, Policies & Progress Thread

[Extended-Phenotype]

I see the analysis of the 2012 accounts are on the STAR website again with some interesting insights into the differences now TSI have arrived.

Not what I was expecting with an £11m loss even after players sales.

This seasons's PL money + next season's parachute payment of £47m will cover that.

Unless...

Total parachute payments of £48M over 4 years. Years 1 = £16M, Year 2 = £16M, Year 3 = £8M, Year 4 = £8M.

From Year 2 (for us) the clubs coming down are likely to have bigger parachute payments because of the increase to the TV deal.

Wait, you divide parachute payments over the course of 4 years, but not a new transfers wages in a 4 year contract?

How odd.

[Alexander Litvinenko]

Huh?

No, when you sign someone of course you don't. You just need to you consider the budgets and likely income of all the contracts for the duration of their contract - in the case you're talking about the OPEX budgets for 4 years.

So if you sign someone on a 4-year contract on the strength of getting £!6M a year in parachute payments, if you're not promoted in the first 2 years you're stuffed.

[Extended-Phenotype]

I was referring to the summer budget thread where you insinuate signing somebody for a 5m fee, 4 year contract on 40k a week amounts to a total hit on that summers budget of 8.325m.

Seems weird you breakdown the parachute payments into annual increments but lumpsum the players wage.

[Alexander Litvinenko]

If it's me your referring to you've obviously misread/misunderstood..... When you sign a player you make a financial commitment for the duration of their contract - however many years that might happen to be.

[melonhead]

I see the analysis of the 2012 accounts are on the STAR website again with some interesting insights into the differences now TSI have arrived.

Not what I was expecting with an £11m loss even after players sales.

effectively doubling the hole in the accounts

[melonhead]

the wages are still payable through the duration of that contract though,
whereas if you go back up, you dont still get the parachutes.

so doing those like that seems sensible

[Extended-Phenotype]

If it's me your referring to you've obviously misread/misunderstood..... When you sign a player you make a financial commitment for the duration of their contract - however many years that might happen to be.

Maybe

Never mind the transfer budget? What about the wages budget?

Sign one player for £5M and pay them 50k a week on a 4-year contract and that's over half of your £30M budget gone.

I took this to mean

transfer fee + total wages over contract period = sum subtracted from summer budget

[melonhead]

nowt there to suggest summer.
just saying that wages over a 4 year contract must be considered, and taken out of a budget, somewhere

[Who Moved The Goalposts?]

nowt there to suggest summer.
just saying that wages over a 4 year contract must be considered, and taken out of a budget, somewhere

I can see what EP means - the summer budget was £30m and all the wages over the 4 years of the contract got lumped into that. Better to state that £7.6m would have gone to the summer budget if you talking year on year.

But as if we're going to spend £30m anyway!

And doesn't this highlight the simplicity and speed with which clubs can over-reach and put them on the road to financial oblivion!

[Extended-Phenotype]

nowt there to suggest summer.
just saying that wages over a 4 year contract must be considered, and taken out of a budget, somewhere

It was on a thread called "Summer Transfer Budget".

[melonhead]

i think you are getting tied up in the details.


dont think the two are mutually exclusive.you can have a post in a thread on summer budgets that says, yes the fee is important, but remembering the wages,and the fact they are paid for the duration of the contract is also important

[Extended-Phenotype]

It's the details I'm arguing about.

People were saying 10m, 20m, 30m in reference to the OP which was about our summer budget. A direct response to that stated not to forget about wages:

"sign one player for £5M and pay them 50k a week on a 4-year contract and that's over half of your £30M budget gone."

Which is a bit silly, really. Especially when the same person reminds us that parachute payments don't come in one lump sum.

Hence, if the budget is 30m for that year, a 4 year contract at 50kpw only eats into another couple of million, not half your kitty.

I understand the point; get the foundations in place early for the annual transfer squabble, insisting we've spent more than we have to counter those frustrated souls who demand a decent punt.

Just think it needs sturdier foundations if it's going to stand up to scrutiny. The transfer storm is pretty violent.

[Who Moved The Goalposts?]

It's the details I'm arguing about.

People were saying 10m, 20m, 30m in reference to the OP which was about our summer budget. A direct response to that stated not to forget about wages:

"sign one player for £5M and pay them 50k a week on a 4-year contract and that's over half of your £30M budget gone."

Which is a bit silly, really. Especially when the same person reminds us that parachute payments don't come in one lump sum.

Hence, if the budget is 30m for that year, a 4 year contract at 50kpw only eats into another couple of million, not half your kitty.

I understand the point; get the foundations in place early for the annual transfer squabble, insisting we've spent more than we have to counter those frustrated souls who demand a decent punt.

Just think it needs sturdier foundations if it's going to stand up to scrutiny. The transfer storm is pretty violent.

Those new parachute payments, incidentally, have just been announced: over the 4 years, they'll go up from the £48m we'll get to to £60m. Whether this makes any difference or not remains to be seen, but I suspect that the vast majority of the excess from the new TV deal will find its way into the pockets of the players and agents, once more.

[Extended-Phenotype]

It should safeguard promoted teams for investing in players which make them more competitive in the top flight. It will mean relegated teams are probably more likely to bounce back up again. And I guess it will encourage more teams to go for it.

On the other hand, it could just push players value up and leave us exactly where we are.

[winchester_royal]

http://www.standard.co.uk/sport/interviews/john-madejski-we-built-reading-brick-by-brick-but-qpr-have-hallmarks-of-a-quick-fix-8583893.html

Interesting interview with Sir John. Seems he's being kept on the leash a fair bit by Anton atm, which is probably the best place for him given some of the PR guffs over the years. Clear that he didn't agree with McD's sacking, but we knew that anyway. The bits that stand out for me is the stuff about Anton trying to be ambitious, and also the difference between the two's level of interest in football. Sir John isn't a football fan so he was never going to invest huge sums into the playing side, but Anton is a fan and may be more inclined to do so. He also talks about the wealth of Anton's family, which suggests Boris might be putting a penny or two into our summer budget.

[Daniel_ElmPark1986]

Anton has got the money!!! But what would you rather, spend 4 million on Calton Cole(28) or 600k on Jamie Murphy (21) comment your opinions.

[Clyde1998]

It depends on if it's value for money.

I'd rather pay £150m for Messi than £0 for Pogrebnyak, but I'd rather pay £0 for Guthrie than £15m for Joe Allen.

[Cobi]

Anton has got the money!!! But what would you rather, spend 4 million on Calton Cole(28) or 600k on Jamie Murphy (21) comment your opinions.

You need a mix of both.

[RoyalTank]

Who wants to bet Anton is going to be sneaky and use the parachute money to pay off JM for the remaining share of the club, thereby not spending any of his own money?

God damn, why didnt I think of this plan.

[winchester_royal]

Who wants to bet Anton is going to be sneaky and use the parachute money to pay off JM for the remaining share of the club, thereby not spending any of his own money?

Genius. I'd watch out for the sneaky Russian's hitmen that'll come calling now that you've foiled his master plan though..