Hi. New member, longtime reader. Actually looking to get further into accounting potentially, in the Football Sector sounds pretty interesting! I don't know if any of you are aware but there has been a pretty new practice within the Football Industry over the last 2 seasons- Sale and Leaseback of Stadia, to related parties! Is possible that there are other Fixed Assets that also have had this but Stadia are the Primary freehold ones, to extract value owned by clubs. The related parties have either been to companies who are part of the group, companies owned by the owners or to the Holding Company in the case of Reading. Oh yeah, the clubs in question, the grounds in question and the valuations: Pride Park, Derby County- £81,100,000 in 2017/18 season. Madejski Stadium, Reading- £26,500,000 in 2017/18. Hillsborough, Sheffield Wednesday- £60,000,000 in 2017/18- yet dated on 22nd June 2019 curiously. Many many curious aspects to that one but more on that another time. Villa Park, Aston Villa- £56.7m. It turns out that there is now an EFL inquiry with independent valuers appointed by the EFL into Derby, Reading and Sheffield Wednesday and looks like a Premier League one into Aston Villa as they won the playoffs last season. Pride Park was sold to Gellaw Newco 202 Limited on 28th June 2018- company incorporated 19th June 2018. Profit about £39-40m on net book value. Madejski Stadium, actually seen no entry on Land Registry for that one- but seemed to have been sold to Renhe Sports Management Co Limited in 2017/18 season and accounting period. Profit just over £6.5m on Net Book value. Hillsborough was sold to Sheffield 3 Limited- and this is where it gets interesting as it is controlled by Sheffield 5 Limited which is controlled by the Owner. Nothing wrong with that, except the transaction was during 2017/18, or on those accounts, yet see below. The company which purchased it, seemingly within 2017/18, Reporting Period, was incorporated at CH on 21st June 2019. Sale occurred/was completed on on 28th June 2019. Footnote to that is that Accounts were dated as signed by the Owner on 20th June 2019 and the auditor on 21st June 2019. Further footnote, accounts were originally due at CH on February 28th 2019, the period ran until May 31st 2018, 2 months extended hence meant 2 months of due date, ie July 31st 2018 to April 30th 2019. Oh and the owner declared at a Fans Forum in December or January of the 2018/19 season that FFP was failed, if they stayed down it would be 'Big trouble' because they had failed by 8 figures. At least the value was market rate though eh? Wait, what! 2014 valuation had Hillsborough at £22.25m and with depreciation but also some additions and the revaluation reserve of £6.5m, even with all that I can't see it much above £30m. A very interesting transaction indeed!?! That really stretches CH, FFP and accounting rules to the limit eh? Aston Villa's was a profit of somewhere between £25-30m on Net Book Value. Sold to NSWE Stadium Limited- new company to represent the new owners? Well, yes and no. Incorporated on 25th July 2017 as Vilden Limited. Same owner renamed to Aston Villa Limited on 7th August 2017. That ran through the owners tenure until 23rd March 2019 (there was new investment in 2018 and possibly still ran by owner A with the investors to Recon Football Limited on 13th May 2019. New owners in sole control change it to NSWE Stadium Limited- same company though surely, just new ownership and name. As it goes, £56.7m sounds alright for cost but their accounts and costing model make me wonder- nearly £45m lopped off in impairment 3 seasons before, and notes to their financial statements suggest the following- from 2017/18 accounts so the most recent ones prior to the sale and leaseback: Tangible Fixed Assets "Tangible Fixed Assets are stated at historical cost less accumulated depreciation and any provision for impairment. Cost includes the original purchase price of the assets and the costs directly attributable with the purchase of the asset. Depreciation is calculated on a straight-line basis to write down the assets to their own residual value over the anticipated useful lives, which are re-assessed on a periodic basis". Rate seems to be 1-2%. For context, the clubs got these independently valued- as is their right indeed, but also for context worth remembering, is that the EFL have the right to value down Related Party Transactions stipulated in their FFP regs and adjust accordingly- will be very interesting to see how this develops! UEFA disallow such transactions as sale and leaseback or even profit on disposal of fixed assets from FFP and adjust down such RPTs e.g. say sponsorship by a company linked to the owner.