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Souness - £800k pay off


Crumpy Gunt
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In the recently published accounts apparently.

 

Anyone notice it and can confirm?

 

Cheap at half the price if true as it was rumoured to be £3/4m.

 

It was there, I read it on that horrifically scanned pdf on .cock.

 

However, as Baggio says it was £800k to get him from Blackburn, not to pay him off.

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Operating expenses included £0.8m relating to the write off of the carrying value of the cost of acquiring Graeme Souness, following his departure in February 2006.

 

Looking at that it reads like we were paying to acquire Souness over the length of his contract, once he was sacked we had to pay the remaining to Blackburn immediately.

 

Could be wrong though.

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Operating expenses included £0.8m relating to the write off of the carrying value of the cost of acquiring Graeme Souness, following his departure in February 2006.

 

Looking at that it reads like we were paying to acquire Souness over the length of his contract, once he was sacked we had to pay the remaining to Blackburn immediately.

 

Could be wrong though.

 

Think you are right, looks like we had to pay £2.4m for him.

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Operating expenses included £0.8m relating to the write off of the carrying value of the cost of acquiring Graeme Souness, following his departure in February 2006.

 

Looking at that it reads like we were paying to acquire Souness over the length of his contract, once he was sacked we had to pay the remaining to Blackburn immediately.

 

Could be wrong though.

 

Not quite- it's not a matter of cash paid to Blackburn. You can't tell one way or another without seeing the club's bank statements. The chances are it was paid up front.

 

The £800k signifies the write off of the remaining asset value on the acquisition of Souness. When we paid compo to get him as manager, the club treated this as an intangible asset to be amortised over the length of the contract (so that the accounting cost matches the "benefit" derived from it as time passes). Once he was sacked, he was no longer an asset so the remaining value had to be fully wiped out.

 

What we paid for Souness in the first place depends on how long his contract really was. If it was 2 years, then £2.4m looks about right- but that will be for his cronies as well. Bargain, eh?

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