From a FFP perspective it doesn't matter what the fee structure is on a purchase or sale of a player. That is cash flow.
What matters is the length of contract, as that is how the purchase price is allocated (amortised) to each year's P&L account, from where FFP is derived.
If Spurs had bought Spence for £12m fee then that £12m would all be reflected as Profit on player disposal in THIS year's Middlesbrough FC P&L, given he has no book value to Boro. It wouldn't matter to this year's P&L when Spurs actually paid the money, whether part upfront or over future instalments. The transaction would be about the transfer of an asset at a point in time.
For Spurs they would have a new intangible asset on their Balance sheet. That asset would then be amortised (written down to zero) evenly over the course of Spence's contract - again regardless of payment schedule. It is the annual amortisation charge that feeds their P&L and their FFP calculation.
If Payero had been sold for £4.5m on deadline day, assuming we did agree a £6m purchase fee and he has a 4 year contract, then the sale would show zero profit on player disposal in this years accounts, as his book value at year end would have been the £4.5m he was sold for. His sale would simply have covered the outstanding liability.
The sale of players with zero book value are one of the FFP life savers as it is Profit from player disposal that is such a boost to the P&L and hence FFP.
Spence, Tavernier, Fry, Jones and McNair are the crown jewels as they have zero book value (either home grown, free or fully amortised with big value) but high market value.
Dijksteel and Bola will have some strong market value and they are now fully/almost amortised.
Watmore will obviously also have decent market value but no book value.
Technically we should count Lumley, Daniels and Olusanya the same way as they have no book value, their only expense is wage.
Brynn, Wood and all the U23/Academy players are also all upside sale value too.
Hall, Howson, Peltier, Bamba, Taylor, Ameobi and Fisher will have no book value but no resale value given their age, their wage and/or outstanding contract, or their fitness.
Crooks, Payero, McGree and Boyd Munce are the only players where there is future amortisation to hit future P&L's, but I'd expect them collectively to wash their faces at the very least if they had to be sold. Ikpeazu too given low fee and some market value. Browne will have covered himself too re outstanding book value with his Oxford move. Coulson may yet attract a fee and Wing will have left no issue.
Akpom will still be hurting the club as his £2.7m fee will still hit the P&L by £900k this year despite him being loaned out. Unless we sell this summer the same will apply re an awful signing.
Connolly, Sporar, Siliki and Balogun are loan players and obviously only have wage or loan fee expenses whilst here and no book or market value relevance.
In summary, the Club appear in decent shape. They have a squad making an assault on the Play Offs, with an outside shot at automatic promotion. They have lots of saleable assets with very little amortisation to hit the P&L in this or future years, with Payero the only significant risk. Put it in perspective, the Assombolonga annual amortisation alone is greater than the total squad amortisation is currently.
The wage bill will be dramatically lower, the amortisation charges a fraction, and they have a squad they could sell if required, with loans that end within five months now.
FFP will still be grim/tight as revenue will still not cover costs, I just don't see how on earth it can in this league; they don't for anybody else in it.
How the EFL allow for Covid in FFP will be key to every club, not just ours.
Of course the overall financial position of the club remains awful. It will have a record negative shareholder value and record level of debt to its owner. However, much better leadership and management of the Club is giving it - and us - hope at least.
