- Jul 20, 2021
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The results seem worse than they are because the club are depreciating the stadium and training ground quite quickly at present (depreciating at around £72m a year, which I'm guessing is a 20 year deprecation). If you remove that 'accounting cost' from our numbers then you can see we'd actually be in profit overall.The results (loss), comments, loans deferring purchases and levy’s comments make it sound like we’re actually a bit broke / not as well off as we think we are. Ala arsenal paying off their stadium
While we're nowhere near broke, we will have to start paying attention to FPP soon. For this set of accounts I think our run rate is about 88% so we're well under the limit, in the next set of accounts we'll also be fine as I expect our revenue number will jump to £530m+ for that period and our additional player amortisation costs in this financial year won't have jumped up too much on last season.
If we miss the CL this season though then we might be close to the wire on FFP in season 2023/24, with us potentially having high amortisation costs that season even if we don't buy anyone on top of Porro and Kulusevski that we've already committed to. This is because (assuming we amortise our players over an average of 5 years) then next year we'll be amortising 5 continuous years of reasonably high spending, whereas in the last few years we've always had that year where we spent zero on transfers to bring the amortisation costs down a little.
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