Posted by jajomami on November 21, 2023, 5:35 pm, in reply to "Jajomami "
It's really difficult to tell from the outside, only the people at the club will know. The starting point for these calculations is the publicly filed accounts (which anyone can read) and I think they showed a cumulative loss of something like £372m for the period in question. But then the club files it's PSR statement which includes adjustments that have brought the loss down to somewhere in the range of £112-124.5m. The issue is that the PSR statement (with the adjustments) isn't public, so we can't see the detail of what has been excluded from the loss. But there are obviously a lot of deductions allowed (mainly to do with the stadium I imagine) if a statutory loss of £372m can be brought down to £124.5m.
If you look at the statutory losses for the past few seasons, they are as follows:
As we go forward, the older years drop out and more recent years join the calculation. The trend seems to be that the losses are coming down considerably (we all recognise this because we weren't buying any players). So, assuming the losses in the year ending 31st May 2023 are moderate and more in line with 21/22 (which you would imagine they would be, given the situation we have been in), it suggests that the PSR calculated loss would also be lower.
So, there are no guarantees and only people at the club will know, but you would probably say the signs are more healthy going forward.
One further point is compensation. If we somehow get clobbered for £100m+ compensation payments from Burnley and Leicester, that would technically create a very big loss. But I would hope (maybe naively) that any compensation brought about by imposition the FFP rules couldn't be used to impose a further FFP breach because it would be a case of double-counting. But who knows with this lot....
on November 21, 2023, 5:35 pm, in reply to "