Bayern will not sell hargreaves - Rummenigge

[Falconhoof]

BBC story here - Tax issue to halt Hargreaves sale

 

Can anyone explain how this works as accounting leaves me a bit baffled, I think i'm less clued up than Vish.

 

But Rummenigge insisted it is not in Bayern's financial interest to sell Hargreaves.

 

The former West German international said: "Thirty millions euros over four years is 7.5m euros each year and that means we have 22.5m euros the first year and we have to pay tax on that.

 

"So Hargreaves will not be going."

 

Why does he say 22.5 m in the 1st year when he says its 7.5 m each year.

[Ostrich Man]

just trying to get highest price possible....which we'll f***ing pay no doubt.

[NWR]

just trying to get highest price possible....which we'll f***ing pay no doubt.

 

Anyone else other than Chelsea and the price would have been 10 euros and a bag of chips.

[StevieC]

Anyone else other than Chelsea and the price would have been 10 euros and a bag of chips.

 

 

Deliberately out bidding rival teams for years (for players yer didn't want or need) and enjoying the fruits of financial strength- and now you want f*cking sympathy?

[Ostrich Man]

no.

[NWR]

Deliberately out bidding rival teams for years (for players yer didn't want or need) and enjoying the fruits of financial strength- and now you want f*cking sympathy?

 

Not at all (Youchanged into a miserable man) I am just stating a fact. This also being a fact that will be pointed out by many on here if we do buy him.

 

[Rimbeux]

I think he means that they will only get 7.5m a year, but will have to pay tax on the full amount straight away, so there is not a huge adavantage selling in Jan. Just a guess.

[Sir Tokyo Sexwale]

Anyone else other than Chelsea and the price would have been 10 euros and a bag of chips.

and even that's daylight robbery

[Guest BrianF]

I'd love him for us. He and Gerrard would make a formidable partnership.

[fyds]

You may have noticed we have this Spanish lad and some kid from Mali who are quite reasonable...

[StevieC]

Not at all (Youchanged into a miserable man) I am just stating a fact. This also being a fact that will be pointed out by many on here if we do buy him.

 

 

 

I'm not miserable. I've just got c*nting internet tourettes. Or an attack of the Steven H's as it's known.

[Kahnee]

You may have noticed we have this Spanish lad and some kid from Mali who are quite reasonable...

 

Keep up Fyds, that Spanish lad couldn't pass a sample apparently...

[NWR]

I'm not miserable. I've just got c*nting internet tourettes. Or an attack of the Steven H's as it's known.

 

I just realised you are Stevie C and not Stevie H. Funny how you mentioned him seeing as I thought he was the one I was calling miserable.

 

BTW. Are you in town this weekend?

Edited November 17, 2006 by N.W.R.Devil

[Ostrich Man]

I just realised you are Stevie C and not Stevie H. Funny how you mentioned him seeing as I thought he was the one I was calling miserable.

took me about a year to realise they were two different posters.

 

theyre both miserable c**** btw.

[StevieC]

I just realised you are Stevie C and not Stevie H. Funny how you mentioned him seeing as I thought he was the one I was calling miserable.

 

BTW. Are you in town this weekend?

 

 

Actually there now having been on a bender in London since Friday- I can barely type for the shaking...

 

My brother was in the George last night though- you may have heard him rowing with someone over the Tiger Woods v Federer debate.

[NWR]

Actually there now having been on a bender in London since Friday- I can barely type for the shaking...

 

My brother was in the George last night though- you may have heard him rowing with someone over the Tiger Woods v Federer debate.

 

Nope.

 

Had a quiet weekend and went out on my motorbike for a long ride. Took a few hours to warm up when I got home.

If you fancy a pint at the weekend give me a shout. The George always has the 3pm and 5pm game on, so I will always go there for that.

[StevieC]

Nope.

 

Had a quiet weekend and went out on my motorbike for a long ride. Took a few hours to warm up when I got home.

If you fancy a pint at the weekend give me a shout. The George always has the 3pm and 5pm game on, so I will always go there for that.

 

 

May well do mate- Will give you a heads up on or through here if I'm down.

[Ronnie Whelan]

In relation to the accouting issue, when a sale takes place the full price of the sale is recognised in the year it occurs. There are of course exceptions to that rule but we dont need to go into that. Basically they would book a sale of £30m. Assuming this is received over 4 years and they receive an even £7.5m p/a, then at the end of year 1 they will show an asset of £22.5m on their balance sheet, i.e. the balance of cash owed to them from whomever. Assuming footballer are treated as any other form of asset then bayern would pay capital tax on the profits of the hargreaves sale, how they collect the money is their own look out.

Edited November 20, 2006 by Ronnie Whelan

[Falconhoof]

In relation to the accouting issue, when a sale takes place the full price of the sale is recognised in the year it occurs. There are of course exceptions to that rule but we dont need to go into that. Basically they would book a sale of £30m. Assuming this is received over 4 years and they receive an even £7.5m p/a, then at the end of year 1 they will show an asset of £22.5m on their balance sheet, i.e. the balance of cash owed to them from whomever. Assuming footballer are treated as any other form of asset then bayern would pay capital tax on the profits of the hargreaves sale, how they collect the money is their own look out.

 

 

Interesting, didn't know that. Seems odd that you don't pay tax on cash received.

[Ronnie Whelan]

Interesting, didn't know that. Seems odd that you don't pay tax on cash received.

 

 

You can pay VAT on a cash received basis if your turnover is below a certain threshold, this is currently ?635,000 in Ireland. Gate receipts, shop proceeds, stall sales etc would all be taxed on a cash receipt basis, as this is the only way it would be calculated. Sponsorship income would generally be the middle ground as these contracts would generally be over a period of lets say 5 years. On that basis, if a club received sponsorship of £50m for a period of 5 years, i.e. £10m per annum, these amounts are recognised in the financial statements as £10m per year for the 5 years, rather than £50m in a lumpsum as in player sales.

 

Its also worth noting that revenue recognition policies can change from one club to the next.

[John am Rhein]

I'd love him for us. He and Gerrard would make a formidable partnership.

 

What? As right back and right midfield?