Wang Jianlin looking at 175m takeover of Southampton according to Sunday Mirror

[Patrick Bateman]

I think the player contracts count as assets because they have a realizable value.

 

Incorrect - as accounting rules state that assets depreciate. I was just doing some reading and found this which backs it up;

 

"it certainly appears that the conditions for football players to be classified as intangible fixed assets.Intangible assets are generally capitalised on the balance sheet at their historic cost - i.e. at the amount it cost the entity to acquire the asset - and are then depreciated over the asset's useful economic life, if they can be purchased or sold separately from buying or selling the business as a whole.

Therefore soccer players should be capitalised in the balance sheet and amortised over their useful economic life. This leaves the problem of how to deal with players who are not acquired but are, instead, developed internally by a club. An intangible asset arising from internal development shall be recognised if, and only if, an entity can demonstrate whether the identifiable asset (soccer player) will generate future economic benefits and the cost of the asset can be measured reliably.

This suggests soccer players developed internally by a club cannot be capitalised until their estimated replacement cost can be determined when they become successful."

[shurlock]

I think the player contracts count as assets because they have a realizable value.

 

Yes.

[farawaysaint]

Basic rule, you amortise the player's transfer fee over the contract of the player. As internally generated intangible assets, youth players have no accounting value, but would be valued in the event of a takeover as the assets now have a readily determinable value and can be seperated from goodwill.

[Wade Garrett]

Basic rule, you amortise the player's transfer fee over the contract of the player. As internally generated intangible assets youth players have no accounting value but would be valued in the event of a takeover as the assets now have a readily determinable value and can be seperated from goodwill.

 

Thanks for that. I'll be able to sleep soundly in my bed tonight now.

[bender]

This kind of explains the all red strip. All part of the making us attractive to a Chinese consortium.

[farawaysaint]

Thanks for that. I'll be able to sleep soundly in my bed tonight now.

 

I have a narrow skill-set, let me have my moment

[Patrick Bateman]

Basic rule, you amortise the player's transfer fee over the contract of the player. As internally generated intangible assets, youth players have no accounting value, but would be valued in the event of a takeover as the assets now have a readily determinable value and can be seperated from goodwill.

 

Makes sense, thanks - very grey area in terms of accounting. This was a good read if you/anyone is interested; http://www.bbk.ac.uk/management/mscmres/publications/seanpublications/agameoftwohalves/Gof2H-chap7.shtml

[saint lard]

Didn't we manage to get a radio station to send questions to Paul Allen in America?

Ha that was great.

thats the one .

tuning in at silly o'clock to hear some plonker try to convince the yanks we were being bought by Paul Allen. Wow we were huge news ....for a moment.

[shurlock]

Makes sense, thanks - very grey area in terms of accounting. This was a good read if you/anyone is interested; http://www.bbk.ac.uk/management/mscmres/publications/seanpublications/agameoftwohalves/Gof2H-chap7.shtml

 

So players would be valued in the event of a takeover -and the figures mooted reflect that value.

[hypochondriac]

thats the one .

tuning in at silly o'clock to hear some plonker try to convince the yanks we were being bought by Paul Allen. Wow we were huge news ....for a moment.

 

I was oddly proud of that moment. The influence of this forum was being felt worldwide!

[shurlock]

From the horses mouth, its b*****s.

 

http://news.sohu.com/20140120/n393774409.shtml

 

 

对此，新京报记者向万达集团求证，万达集团董事长王健林表示，目前万达集团没有任何人与南安普敦俱乐部接触过，也未委托任何人或第三方机构与之进行任何有关球队收购的事宜，这种说法纯属子虚乌有，与事实不符

 

"Consequently, a XinJing reporter sought confirmation from Wangda Dalian. Wangda Dalian CEO Wang Jianian replied that to date nobody from the company had ever been in contact with Southampton, nor had any agent or third party discussed the issue of a sale. Such a suggestion was purely fictitious and did not tally with the facts".

 

Case closed it would appear.

Edited 19 January, 2014 by shurlock

[CanadaSaint]

Incorrect - as accounting rules state that assets depreciate. I was just doing some reading and found this which backs it up;

 

"it certainly appears that the conditions for football players to be classified as intangible fixed assets.Intangible assets are generally capitalised on the balance sheet at their historic cost - i.e. at the amount it cost the entity to acquire the asset - and are then depreciated over the asset's useful economic life, if they can be purchased or sold separately from buying or selling the business as a whole.

Therefore soccer players should be capitalised in the balance sheet and amortised over their useful economic life. This leaves the problem of how to deal with players who are not acquired but are, instead, developed internally by a club. An intangible asset arising from internal development shall be recognised if, and only if, an entity can demonstrate whether the identifiable asset (soccer player) will generate future economic benefits and the cost of the asset can be measured reliably.

This suggests soccer players developed internally by a club cannot be capitalised until their estimated replacement cost can be determined when they become successful."

 

I think that suggests that they do indeed hold value and are therefore assets - albeit depreciating assets based on the declining balance of their contract.

 

In the case of a Luke Shaw, for example, he has a contract and a (debatable) market value and is therefore an asset.

 

Part of the complexity of negotiating the purchase of a football club revolves around the challenge of agreeing what such an asset value is.

[Stepgar]

he will be gone by start of next season

 

"Shaw wants talks with Saints owner Katharina Liebherr who took over at St Mary’s last week after the resignation of chairman Nicola Cortese but is expected to stop short of asking to leave."

 

Since when did an 18 year start demanding talks with the owner. Modern journalism does make me chuckle.

[farawaysaint]

I think that suggests that they do indeed hold value and are therefore assets - albeit depreciating assets based on the declining balance of their contract.

 

In the case of a Luke Shaw, for example, he has a contract and a (debatable) market value and is therefore an asset.

 

Part of the complexity of negotiating the purchase of a football club revolves around the challenge of agreeing what such an asset value is.

 

Shaw is a bad example, he won't be on the books as a youth team product although he is of course an asset, just one that cannot be recognised.

[trousers]

They've officially said its b*****s. To date, they've never had contact nor has any agent or third party had contact with us.

 

http://news.sohu.com/20140120/n393774409.shtml

 

Ah, ye olde denial tactic... Works every time

[Saint Charlie]

Thread can be locked then. Usual load of takeover ********.

[Wade Garrett]

I have a narrow skill-set, let me have my moment

 

Fair play to you faraway.

[CanadaSaint]

Shaw is a bad example, he won't be on the books as a youth team product although he is of course an asset, just one that cannot be recognised.

 

That's why I mentioned him - because he doesn't fit the cost/depreciated value method but is a player who can only be valued using a current market value approach. You can't just not recognize an asset of his value.

[farawaysaint]

That's why I mentioned him - because he doesn't fit the cost/depreciated value method but is a player who can only be valued using a current market value approach. You can't just not recognize an asset of his value.

 

Sorry, I didn't read the bit where you mentioned the purchase, you are totally correct.

Edited 19 January, 2014 by farawaysaint
idiot

[Dr Who?]

That is strange that they have denied. I do not seem to remember Paul Allen doing the same. If it is rubbish then people tend to not bother with it. I think there is something in this, or more than think. Take over on the way lads.

[Matthew Le Tissier]

If you google translate it reads this

 

In this regard, the Beijing News reporter to verify the Wanda Group, Wanda Group Chairman Wang Jianlin said Wanda Group currently does not have any human contact with the Southampton club had also not appointed any person or any third party with whom the team acquired matters, this statement untrue, untrue

 

 

Who said cortese was human

[Dr Who?]

If you google translate it reads this

 

In this regard, the Beijing News reporter to verify the Wanda Group, Wanda Group Chairman Wang Jianlin said Wanda Group currently does not have any human contact with the Southampton club had also not appointed any person or any third party with whom the team acquired matters, this statement untrue, untrue

 

 

Who said cortese was human

 

He is also no longer at Southampton!

[Deano6]

This kind of explains the all red strip. All part of the making us attractive to a Chinese consortium.

 

Nah, since when did the colour of the shirts ever matter to owners from the far east?

 

 

Shaw is a bad example, he won't be on the books as a youth team product although he is of course an asset, just one that cannot be recognised.

 

This is all completely irrelevant. The accounting treatment doesn't matter a bit to how a businessman is going to value the club for a transaction. He's not going to ignore the fact that he could sell Luke Shaw for 30 million quid tomorrow, just because IAS 38 says you shouldn't under the IFRS accounting rules. He's going to value everything at their true market value - that's what market value is...what something is actually worth in the market. Amortization / depreciation methods are often a poor indicator of market value - they're just more tractable and less easy to manipulate when creating financial statements, which is why they are the preferred method when developing the accounting rules.

[Olallana]

I´m amazed that people think that involved people would come out and confirm the story if there is one.

 

Even though it´s probably a non-story I wont dismiss it just because of some comments made either way....

[Batman]

As if it was ever going to happen lol

[Dr Who?]

Still dreaming!

[farawaysaint]

Nah, since when did the colour of the shirts ever matter to owners from the far east?

 

 

 

 

This is all completely irrelevant. The accounting treatment doesn't matter a bit to how a businessman is going to value the club for a transaction. He's not going to ignore the fact that he could sell Luke Shaw for 30 million quid tomorrow, just because IAS 38 says you shouldn't under the IFRS accounting rules. He's going to value everything at their true market value - that's what market value is...what something is actually worth in the market. Amortization / depreciation methods are often a poor indicator of market value - they're just more tractable and less easy to manipulate when creating financial statements, which is why they are the preferred method when developing the accounting rules.

 

I know, I misread, that's why I apologised above.

Edited 19 January, 2014 by farawaysaint

[Deano6]

I know, I misread, that's why I apologised above.

 

Wasn't a comment on you specifically, but the whole discussion on how you would value players in event of a sale. Someone earlier brought up what the accounting rules say about it, which just isn't relevant.

[saint lard]

Chinese radio station want to do an interview with Peter white....

 

whats the the time difference ?

[Foxy]

Chinese radio station want to do an interview with Peter white....

 

whats the the time difference ?

 

Beijing is 8 hours ahead of us

[Saints foreva]

 

Close thread.

[Smirking_Saint]

Dont believe it, MLT said it would happen !!!

 

Yaaawwwwnnn

[Glasgow_Saint]

MLT has been bang on with info before.... Told us about Sam Gallagher for starters

[Delboy Dave]

Yeah but back in the day he also said Rod Stewart was going to buy the club...

[Badger]

So, any update for us out of towners, from the hotel near Winchester ?

I assume some of you are staking it out in the best traditions of old SaintsForever type of fashion.

[Matthew Le God]

MLT has been bang on with info before.... Told us about Sam Gallagher for starters

 

Hey, get it right!

 

http://www.saintsweb.co.uk/showthread.php?34280-Sam-Gallagher-Plymouth-Argyle-youth-player-to-sign-for-Saints&highlight=Gallagher

[Matthew Le Tissier]

Like I said. Time will tell one way or another!

 

Yawnnnnnnnnn

[Matthew Le Tissier]

MLT has been bang on with info before.... Told us about Sam Gallagher for starters

 

 

I can't take credit for this I'm afraid.

 

However I can take credit for the rod Stewart one

[Saint86]

The rumour was going round their ship yards on Poole Quay before it appeared on here. My lad works there and he mentioned it to me before MLG's thread started.

 

Likewise I mentioned this when NC resigned... Not several days later. Its been going on for a couple of weeks, just not widely known. Leads me to believe its true.. or at least something in it. That said, all that has changed since I first heard about it is that NC has resigned and a guy called MLG started a thread online.

 

I actually wondered at the time if NC resigned because club wanted to sell the club to a buyer who had no interest in involving cortese, although that appears wide of the mark.

[SaintRichmond]

Nah, since when did the colour of the shirts ever matter to owners from the far east?

 

.

 

 

Would you kindly ask the current owner of Cardiff F.C for his comments re this ??

 

Thanks

[dubai_phil]

Likewise I mentioned this when NC resigned... Not several days later. Its been going on for a couple of weeks, just not widely known. Leads me to believe its true.. or at least something in it. That said, all that has changed since I first heard about it is that NC has resigned and a guy called MLG started a thread online.

 

I actually wondered at the time if NC resigned because club wanted to sell the club to a buyer who had no interest in involving cortese, although that appears wide of the mark.

 

The coming days will show that maybe the opposite was true.

 

NC resigned because KL did NOT want to sell the club.

 

Not beyond the realms of possibility that NC had lined up Jianlin at a good price & KL said no I want to keep it (or no I have a different idea)

 

Whatever the case there should be enough to keep this place speculating for a week or two no doubt

[SaintRichmond]

The coming days will show that maybe the opposite was true.

 

NC resigned because KL did NOT want to sell the club.

 

Not beyond the realms of possibility that NC had lined up Jianlin at a good price & KL said no I want to keep it (or no I have a different idea)

 

Whatever the case there should be enough to keep this place speculating for a week or two no doubt

 

What is your take on Cotese's "vision" for taking us to the next level ??

 

We are/were supposed to have plans for enlarging St Marys. Cortese mooted getting us to the Champions League.

 

Each vision would cost Mega Bucks. Who is prepared to fund it ??

 

I do not think the Leibherrs have any intention of further massive funding, and that could well be the reason why Cortese "walked"

 

IMHO, if Katherina Leibherr does not want to sell, and baulks at further funding, then I fear SFC will stagnate, and sink back into the trough of bit players of the Prem

 

What would your take on this be ?

[trousers]

What is your take on Cotese's "vision" for taking us to the next level ??

 

We are/were supposed to have plans for enlarging St Marys. Cortese mooted getting us to the Champions League.

 

Each vision would cost Mega Bucks. Who is prepared to fund it ??

 

I do not think the Leibherrs have any intention of further massive funding, and that could well be the reason why Cortese "walked"

 

IMHO, if Katherina Leibherr does not want to sell, and baulks at further funding, then I fear SFC will stagnate, and sink back into the trough of bit players of the Prem

 

What would your take on this be ?

 

Seems like a reasonable hypothesis to me. That we're linked with John Williams as new CEO would tend to reinforce the view that the Liebherrs aren't wanting to pump anymore money in as his forte at Blackburn seemed to be running the club on a tight budget in the post Jack Walker era.

[dubai_phil]

Dunno Richmond.

 

That's the fun.

 

NC= Anti FPP regs what will new CEO say.

 

Stagnate? maybe. New 5 year plan? Possibly.

 

Barca quality kids? Could do an Everton.

[Foxy]

Seems like a reasonable hypothesis to me. That we're linked with John Williams as new CEO would tend to reinforce the view that the Liebherrs aren't wanting to pump anymore money in as his forte at Blackburn seemed to be running the club on a tight budget in the post Jack Walker era.

 

Although he subsequently went to Citeh, where the remit looks the same as the one Mrs F seems to think she has when hitting the shops.

[shurlock]

Seems like a reasonable hypothesis to me. That we're linked with John Williams as new CEO would tend to reinforce the view that the Liebherrs aren't wanting to pump anymore money in as his forte at Blackburn seemed to be running the club on a tight budget in the post Jack Walker era.

 

Unless, of course, they are attracted by Williams experience in dealing with big player contacts at City

[trousers]

Anyone know why he left Man City after a relatively short time there...?

[shurlock]

Anyone know why he left Man City after a relatively short time there...?

 

Didn't city appoint a new chief executive, Ferran Soriano and there was a reshuffle?

[trousers]

Didn't city appoint a new chief executive, Ferran Soriano and there was a reshuffle?

 

Not sure. There doesn't seem to be (m)any articles out here about why he left. I did find an article at the time he was appointed saying he had been brought into Man City to help purge the club of some of its 'deadwood' players. I also found a post on a Man City forum after he got the referee association job saying they hadn't realised he had left City sometime before. All in all, it seems he had a very low profile role at Man City (which isn't necessarily a bad thing of course)

[shurlock]

Not sure. There doesn't seem to be (m)any articles out here about why he left. I did find an article at the time he was appointed saying he had been brought into Man City to help purge the club of some of its 'deadwood' players. I also found a post on a Man City forum after he got the referee association job saying they hadn't realised he had left City sometime before. All in all, it seems he had a very low profile role at Man City (which isn't necessarily a bad thing of course)

 

http://www.telegraph.co.uk/sport/football/teams/blackburn-rovers/9816747/Former-Blackburn-Rovers-chairman-John-Williams-to-be-appointed-the-new-head-of-professional-referees-body.html