If you pay compensation for a manager, does that get spread over the amount of years the contract is for, similar to a play signing?
I don't believe it is, similar to the repairs to the stadium
Some bloke on't wireless was on about how clubs normally amortise severance payments these days - not a clue what he was on about though, tbh.
I’d imagine so. It would make sense for clubs to pay any severance over the length remaining on the deal.
But mayor will know
It depends on his contract and any negotiations to end it.
He might be entitled to receive his usual pay until such time as he gets a new job. If so, his wage costs will be part of the annual FFP costs.
If we enter into a compromise agreement to pay him off early then the whole cost would likely be taken into account for FFP when it is paid.
It could suit Blues to stall on any agreement with him. For FFP it might be better to pay him say £20,000 a week for the rest of this financial year than to agree to pay-off the remaining 3.25 years off at say a £1.5 million cost.
I’m not convinced he was on 1.5 million a year. I think he was on far less than that
It depends on the contract and the termination agreement.
If you pay a lump sum it goes in that year's accounts, but if you effectively put someone on gardening leave for the rest of the contract the monthly pay will spread over it.
I expect Rooney's contract is fairly complex. It's probably got performance demands and break clauses in it so it's not just paying him for the next few seasons.
As I understand and from what Mayor said it's unlikely that we have reached the first break clause so we can't terminate for poor performance.
Rooney has a strong argument that the club have prevented him from fulfilling conditions he had every chance of reaching.
So it will come down to what we can agree with his agent. I expect he will be paid for this season plus a further sum, but it is unlikely to be the whole contract.
The way compensation works will encourage them to settle for a definite amount. Blues might have to pay his contract in full, but could deduct wages from any new job he gets. But if he agrees a lump sum (even paid in instalments) he gets a definite amount which might with new wages be more than he got from Blues. While he isn't exactly on the breadline I expect he will want as much from Blues as he can get.
For P&S we can spread this over the periods it is paid. But if we are paying him £500k a year not to work for us for 3 years that is £500k we can't spend on a player or coach.
Unless Cook puts the details in a lock up and then doesn't pay the rent on it I doubt we will ever see the actual figures.
Just to be clear, I'm on about paying to get someone else's manager, not sacking Rooney.
Like if it cost us £1m to get Corberan from West Brom, would we spread that £1m over a three year contract?
Nikola ZigicJust to be clear, I'm on about paying to get someone else's manager, not sacking Rooney.
Like if it cost us £1m to get Corberan from West Brom, would we spread that £1m over a three year contract?
That's a good question and I don't know if it's the case.
In the case of players, it is amortised over the length of the contract cos players have a value due to the fact they can be transferred out.
Are managers the same? I'm genuinely not sure, I'd think not but I do not know enough and I wouldn't use what I say as gospel.
El MayorNikola ZigicJust to be clear, I'm on about paying to get someone else's manager, not sacking Rooney.
Like if it cost us £1m to get Corberan from West Brom, would we spread that £1m over a three year contract?
That's a good question and I don't know if it's the case.
In the case of players, it is amortised over the length of the contract cos players have a value due to the fact they can be transferred out.
Are managers the same? I'm genuinely not sure, I'd think not but I do not know enough and I wouldn't use what I say as gospel.
By the same logic that someone can pay a set fee for your manager then you'd say yes, they also have a value that can be transferred out. Not 100% though as you say.
I'd love us to go and get someone if it's viable rather than just go through a pool of who's out of work.
I have no idea what he was on. It's just some example numbers.
El MayorNikola ZigicJust to be clear, I'm on about paying to get someone else's manager, not sacking Rooney.
Like if it cost us £1m to get Corberan from West Brom, would we spread that £1m over a three year contract?
That's a good question and I don't know if it's the case.
In the case of players, it is amortised over the length of the contract cos players have a value due to the fact they can be transferred out.
Are managers the same? I'm genuinely not sure, I'd think not but I do not know enough and I wouldn't use what I say as gospel.
I don't know the answer but the principle is the same - if we signed Corberan from West Brom for £1m on a 4 year deal then next Jan Man City want to sign him to replace Pep, we would be due compensation for him. An accountant should be able to justify it but I'd think it might be riskier since it isn't as common so it is more likely to be challenged.
Another FFP question:
Have the allowances for FFP been raised with inflation, or are we still using figures set years ago?
Nikola ZigicJust to be clear, I'm on about paying to get someone else's manager, not sacking Rooney.
Like if it cost us £1m to get Corberan from West Brom, would we spread that £1m over a three year contract?
Yes
Managers' contracts meet the definition of intangible assets, just like player contracts, and so are accounted for in the same way