| The change of accounting year end has restricted our transfer time . 09:10 - Jul 24 with 4214 views | NOTRAC |
Last year in the first week of August we sold two of our best player,Williams and Ayew for £31m.
Some of that money was then spent on acquiring replacements.Of these, two, Mawson and Llorente eventually proved to be excellent purchases , whilst others like Borja and Van Der Hoorn turned out the opposite.
What these transfers did however was to disrupt the team to the extent that in our first 19 games in the Premiership we won only 2 matches.It also led to the sacking of 2managers and a fight against relegation for the rest of the season.
It does not appear that we have learnt our lesson.
The uncertainty regarding our two best players Sigurdsson and Llorente ,could well see them being sold with weeks to go before the start of this season, with again little time to acquire replacements.
However good a manager we have in Paul Clement or anyone else for that matter, means that they start the season with a huge disadvantage. They have a team that has lost its best players, and new players who have to blend with the rest of the team, who themselves must feel tremendous uncertainty regarding their own positions and style of play.
So why are we putting the team, the manager, and the success of the club through this torture again?
Is it for accounting reasons?
Two years ago we changed our accounting year end from 31May to 31st July.
Is this now the reason that we leave our big sales to August.
By doing this the profit from these sales comes into a new accounting year and Corporation tax is paid on profits a year later.
If we sold Sigurdsson before the end of July the profit on his sale of say £40m (sale proceeds less amortised value) would be added to the profit of £30m made on the Williams and Ayew sale at the beginning of the accounts year. Corporation Tax on the £40m could amount to £8m which would have to be paid by the 1st May 2018. By selling him next week in August the Corporation Tax is due for payment on the 1st May 2019 . For those who think spending the proceeds on new players would save that tax are incorrect because even if the £40 m was spent on new players only amortisation based on a percentage of the length of their contracts could be charged in the yearly accounts.
So by changing the accounting year we have forced our transfer dealing into a very short period in August.Next year will be the same as if Sigurdsson is sold his profit will affect our sales and spend prior to July 31st 2018. |  |
| |  |
| The change of accounting year end has restricted our transfer time . on 09:51 - Jul 24 with 4117 views | raynor94 |
Excellent post, makes very interesting reading, and if it is the case, yes it does put us at a disadvantage |  |
| |
| The change of accounting year end has restricted our transfer time . on 09:54 - Jul 24 with 4104 views | WarwickHunt |
| The change of accounting year end has restricted our transfer time . on 09:51 - Jul 24 by raynor94 |
Excellent post, makes very interesting reading, and if it is the case, yes it does put us at a disadvantage |
Amateur hour. Again. |  | | |
| The change of accounting year end has restricted our transfer time . on 13:38 - Jul 24 with 3931 views | tomdickharry |
Our owners and Mr Clement would be fully aware of the tax situation if and it's a very big if we were to sell Siggy and Llorente,keep these two key players is a safe and secure investment,sell and matters become speculative,think our owners would chose the former. | | | |
| The change of accounting year end has restricted our transfer time . on 13:50 - Jul 24 with 3907 views | monmouth |
It is astonishingly late if we want to do anything serious. With other clubs knowing we have the dosh and holding out towards the end, I can see us getting nobody before the final days of August, if then. |  |
| |
| The change of accounting year end has restricted our transfer time . on 14:06 - Jul 24 with 3869 views | Joe_bradshaw |
Send him to Everton now with an invoice in his pocket for £45M dated August 1st.
Simple... |  |
| |
| The change of accounting year end has restricted our transfer time . on 15:01 - Jul 24 with 3781 views | NOTRAC |
| The change of accounting year end has restricted our transfer time . on 13:38 - Jul 24 by tomdickharry |
Our owners and Mr Clement would be fully aware of the tax situation if and it's a very big if we were to sell Siggy and Llorente,keep these two key players is a safe and secure investment,sell and matters become speculative,think our owners would chose the former. |
I hope you are right Eddy. | |
| |
| The change of accounting year end has restricted our transfer time . on 15:08 - Jul 24 with 3762 views | Loyal |
Some decent points by the OP, however surely there is a way round this ? |  |
| Nolan sympathiser, clout expert, personal friend of Leigh Dineen, advocate and enforcer of porridge swallows.
The official inventor of the tit w@nk. | | Poll: | Who should be Swansea number 1 |
| |
| The change of accounting year end has restricted our transfer time . on 18:37 - Jul 24 with 3640 views | WarwickHunt |
| The change of accounting year end has restricted our transfer time . on 15:08 - Jul 24 by Loyal |
Some decent points by the OP, however surely there is a way round this ? |
Send him on trial.  | | | |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
