PLEASE TAKE NOTE - Ashton transfer - how we paid for him

Basic ?2.5m - usually half paid at the time of transfer
half over the remaining 12 months.

?1.2m of the forecast ?5m profit for 04/05 which would have been used to redeem pref shares was redployed to pay the ?1.25m on date of transfer.

Of the other ?1.25m due over the next 12 months
some of it came from higher than expected commercial receipts as announced by the club last season.

In addition IF the club had taken a prudent view to its budgeting it would have taken TV receipts to be ?2.5m for 04/05. This was the smallest amount a Prem club received in 03/04. However I suspect the club received more than ?2.5m more like ?3m to ?4m
so the excess cash received would have gone to finance Ashton transfer. Remember how they were waiting to hear what extra Tv games eg Liverpool that were going to be shown.

However while the cash was generated from commercial activities and TV in 04/05, it doesn't mean that City have to hand over all of the second ?1.25m to Crewe by the 30th June 2005. Depending on the transfer agreement some of the second ?1.25m may be due to Crewe during the 05/06 season (ie 1st July 2005 to Jan 2006).

In essence if City were prudent about budgeting for TV receipts then the bulk of Ashtons basic transfer fee has already been raised in 04/05

Finally there may be another ?0.5m of add ons re Ashtons transfer that may be wholly or partly due in 05/06 depending on what milestones trigger this payment(s). It may be this amount that will be funded by the parachute payment, alternatively it may already be funded by the excess commercial and TV money that were generated in 04/05 season.

I look forward to seeing the Accounts for 04/05 season as it will help us understand the finances re last season and the Ashton transfer.

Dont forget City are good at deploying the smokescreen to try and confuse other clubs as to how much money we really have for transfers.

Posted By: oh arr, Aug 3, 12:29:21