Pure Profit

[smorgan86]

Listening to a video about 10+2 million for Longstaff being pure profit because he's a homegrown player. I get that concept but can anyone explain it from a PSR standpoint?

If PSR runs on a three year rotation, isn't every player at the club here for more than 3 years tehcnically pure profit as it pertains to PSR reporting?

Anyway - good offer for Sean. Hope he does well at Leeds.

[Jammy89]

He'll be brilliant for them but ?12 million just feels so cheap for him.

[Nufcian]

When they say pure profit it is home grown but also any player that has been here longer than the original deal to buy him.

As in we buy a player, and pay off the fee over 5 years.

If we sell that player after 1 year, we still owe the selling club 4 years worth of his transfer fee.

If we sell that same player after he has been at the club 5 years and his fee has been paid off, then it is pure profit.

Longstaff being honest grown means we didn’t pay any transfer fee for him, so pure profit.

3 years PSR is just the sum of losses for the previous 3 seasons… most of the time, for most clubs, Revenue is less than operating costs (transfer fee yearly payments + Wages + all the other bills)… so clubs can lose more than they make, but have to cut their cloth so they balance out the last 3 years to only have lost 105m over the period.

[Zippity]

10 mil seems veruy cheap, tbf