FAO Tony Blue Williams re Derby finances
Posted: Thu May 17, 2018 9:31 am
Creating a new topic Tony as otherwise my response to your query would just have been lost in the "snowgate" thread.
The debt forgiveness in their accounts is really the same as Vincent Tan`s debt write -offs in the CCFC accounts - it is badged as "exceptional" as it is not really in the normal course of business of the football club activities.
"Allowable" costs for FFP/P&S purposes include expenditure on youth development programmes, some stadium development costs etc. In CCFC`s case it also included a sum of just under £6m in 2016/17 to do with the accounting treatment of long term loans introduced by VT. You may recall , CCFC had a FFP problem a couple of years ago caused by a change in accounting rules when they disallowed a big credit in the accounts of about £13m triggered by that adjustment (which the club had to apply). Having disallowed the credit , they now have to disallow the cost (which can therefore be deducted off the net reported loss) as the adjustment reverses itself over the seasons.
Keith
The debt forgiveness in their accounts is really the same as Vincent Tan`s debt write -offs in the CCFC accounts - it is badged as "exceptional" as it is not really in the normal course of business of the football club activities.
"Allowable" costs for FFP/P&S purposes include expenditure on youth development programmes, some stadium development costs etc. In CCFC`s case it also included a sum of just under £6m in 2016/17 to do with the accounting treatment of long term loans introduced by VT. You may recall , CCFC had a FFP problem a couple of years ago caused by a change in accounting rules when they disallowed a big credit in the accounts of about £13m triggered by that adjustment (which the club had to apply). Having disallowed the credit , they now have to disallow the cost (which can therefore be deducted off the net reported loss) as the adjustment reverses itself over the seasons.
Keith