Georginio Rutter worth £31.8million to Leeds United after transfer twist – Finance Expert
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Leeds United...
Dan Plumley has shared that Georginio Rutter is currently worth £31.8million to Leeds United after they rejected a smaller offer from Borussia Dortmund in the transfer window.
Phil Hay reported after the window that an offer of around £20million was thrown out as the Whites didn’t want a loss in their accounts to affect their FFP.
After spending just above £35million for the deal, and Rutter being less than a year into his contract, the finance expert used amortisation to figure out his worth to the club and how that loss could negatively impact them.
“It’s the basic principle we’re looking at with how contracts are worked out,” he exclusively told MOT Leeds News.
“You would have the transfer fee divided by the length of the contract, which is the amortisation charge for the player which goes down as an expense, and it has implications for FFP, but it’s also the book value of a player.
“If you take this one, the transfer fee was around £35million, a five-and-a-half-year contract, so that gives you around a £6.3million a year amortisation charge, if we halve that for the purpose that he’s in the early stage of his contract, you get to around £3.2million, which means the book value of him to Leeds United at the minute is £31.8million.
“If you compare that to a sale offer of £20million, it’s easy to see why they’ve rejected that out of hand.
“It’s the principle of contracts, amortisation, and the book value of players, as obviously, you don’t want to sell a player for less than the book value and because we are so early into the contract, that is what’s happening in relation to that.
“All of that, then has an impact on bottom line profit or loss, which is what the FFP calculated against.”
In other Leeds United news, our Expert also believes that the Whites could fine one of their players after an incident