16 Aug 2023 16:42:51
Eds can I as yous a question Wolves have taken 9omlii in transfer fees would it hurt Wolves if they spent 20mill that still gives them a profit of 70 mill plus anyone else leaving plus all the wages saved I don't know FFP so not sure.

{Ed001's Note - I have no idea what the financial situation is like to answer that. Until the accounts are reported, we will not know if any of the incoming money has been taken out by Fosun.}

1.) 16 Aug 2023
16 Aug 2023 18:36:15
Thank you Ed001's it's just so frustrating we have sold players for 90mill and yet we can't sign anybody. How other clubs get away with it is unbelievable just saying like Everton.

{Ed001's Note - it could be worse imagine how frustrating it must be to other Spanish teams to watch Barca continue a spending spree when over the salary cap and with debts of over a billion. Oh and they also recently took out a mortgage in excess of a billion to update the Nou Camp.}

2.) 16 Aug 2023
16 Aug 2023 19:35:26
Surely the 90 mill is not profit - just cash. The value in the books for each player sold has to be expensed. Then they need to cover losses. Is there anything on the pot?

3.) 16 Aug 2023
16 Aug 2023 20:43:29
Actually thinking about it the 90 mill is not cash as they were probably sold on terms.

4.) 16 Aug 2023
16 Aug 2023 22:12:44
Of the £90m incoming, we have spent £40+m on Cunha and whatever the fee was for B Traore. Last year they were on loan so I suspect that only wages and any loan fees would be in the accounts.

5.) 17 Aug 2023
17 Aug 2023 11:17:44
There does seem to be a lot of confusion on here between cash generated and profit. They are not the same, although it is fair to say that profit is usually a reasonable indicator of medium/long term cash flow.
I am not an expert on football finances or FFP but the principle for calculating profits/losses would likely be along the following lines:
If we purchase a player for £50m on a five year contract, we would reduce his "book value" (and our profits) by £10m per year (we would not record a £50m loss at he point of purchase but instead we would record a reduction in profits by £10m per year for the duration of his contract, at the end of which he would have zero book value). If we sold that player after say 2 years, his book value would be £30m. If we sold him for £40m, we would record a £10m profit (not a £40m profit). If we sold him for £25m, we would record a £5m loss (not a £25m profit).
Thus cash generated/spent is not necessarily the same as profit.
Similarly, the timing of cash payments for players has little effect on profits. Deferred payments by clubs is effectively one club loaning money to another. As long as both sides are agreeable to the arrangement, then its not really a problem. It doesn't affect your profits/losses other than the interest payments you may have otherwise paid or saved.
Hope this helps. If I haven't explained something very well, let me know and I'll try again!

6.) 17 Aug 2023
17 Aug 2023 14:16:00
Could do with some advice Ed, when the wife asks " does my bum look big in this " is there any answer I can give that won't get me into trouble and end up with me sleeping on the settee?

7.) 17 Aug 2023
17 Aug 2023 15:27:11
KingRichard I salute you, it sums things up well.lol

8.) 17 Aug 2023
17 Aug 2023 19:00:04
BullysMagicBoots - Spot on!
If anyone needs to understand why we are constrained by FFP hopefully this helps.
As BMB has also offered I can similalrly produce a spread sheet that sadly shows this is likely (not certain of course as lots of things might impact on us going forwards, players sales, new contracts awarded, sponsorship deals signed, huge improvements in on field performance leading to say European football and higher TV and League allocations etc etc) to continue to summer of 2025 when a number of our players contracts expire. Note virtually none expire in 2024!

9.) 17 Aug 2023
17 Aug 2023 19:06:52
Be a man King Richard, stand up to her. Then fetch some flowers and grovel!