What's new

Random Rumours

I'd like to see how Sanchez does when he isn't under a manager forcing him to play out from the back.

That said, I wouldn't say no....

 
Yeah if we are going for someone on the right I'd prefer Harry Wilson.

For the left there are some good options out there for decent price point. Harvey Elliott for one could do well in an Alonso system. Whilst Brandt is about to leave Dortmund on a free, lots of experience there
Click to expand...
If this is the idea of experience player then may as well continue youth player policy.

 
Chelsea are weighing up a move for Bayer Leverkusen centre-back Edmond Tapsoba, 27, with the Burkina Faso international having previously worked under incoming boss Xabi Alonso. (Teamtalk)
Click to expand...
So I guess we’ll gradually be linked to every player ever to have played for or with or heard of Alonso now.

I’ve not heard of this lad, but given Alison’s Bayer team was asset stripped, if he’s still there, then he must be to Bayer what Bakayoko was to that Monaco team.

 
Chelsea left back Marc Cucurella is Atlético Madrid’s top defensive target this summer. (Source: MARCA)

Can we make money on Cucu? If not then thats another nail in our SDs coffin as most would see him as one of our better performing players over the last few seasons? Not a failed prospect to offload at a loss, surely?

 
Chelsea left back Marc Cucurella is Atlético Madrid’s top defensive target this summer. (Source: MARCA)

Can we make money on Cucu? If not then thats another nail in our SDs coffin as most would see him as one of our better performing players over the last few seasons? Not a failed prospect to offload at a loss, surely?
Click to expand...
His book value is around £22m.

 
I know this makes me thick by not understanding this but, if you pay £56 million for something, and after three years of spending 70 grand(?) a week to use it, you then sell it for say £30 million, you’ve actually made an £8 million profit?

 
Chelsea left back Marc Cucurella is Atlético Madrid’s top defensive target this summer. (Source: MARCA)

Can we make money on Cucu? If not then thats another nail in our SDs coffin as most would see him as one of our better performing players over the last few seasons? Not a failed prospect to offload at a loss, surely?
Click to expand...
image.png

For a 27 year old starting LB for Spain you'd think we'd be able to get at least £40M. I don't think he'd be too difficult to upgrade on either, Hato looks his equal already.

 
I know this makes me thick by not understanding this but, if you pay £56 million for something, and after three years of spending 70 grand(?) a week to use it, you then sell it for say £30 million, you’ve actually made an £8 million profit?
Click to expand...
Its a load of nonsense to comply with FFP. Any logical person will know its a loss, but on paper it appeases the nerds.

 
But if i was a shareholder i would be disappointed? And if i was a director i wouldnt feel comfortable about complying with FFP.

 
Last edited by a moderator:
I know this makes me thick by not understanding this but, if you pay £56 million for something, and after three years of spending 70 grand(?) a week to use it, you then sell it for say £30 million, you’ve actually made an £8 million profit?
Click to expand...
Amortisation. Accounting sleight of hand.

 
I know this makes me thick by not understanding this but, if you pay £56 million for something, and after three years of spending 70 grand(?) a week to use it, you then sell it for say £30 million, you’ve actually made an £8 million profit?
Click to expand...
Its basiaclly the same as any asset in a business, the actual money spent to use it is never taken in to the valuation. No different to when you buy a car really, buy it for £20k, sell it a year later for £21k, profit, happy days. Ignores that you spent £700 on insurance, £250 on Road Tax, £4k on petrol (mor like £40k currently, amiright....), new tyres, service blah blah.

The running costs are never used when valuing an asset.

 
So I guess we’ll gradually be linked to every player ever to have played for or with or heard of Alonso now.

I’ve not heard of this lad, but given Alison’s Bayer team was asset stripped, if he’s still there, then he must be to Bayer what Bakayoko was to that Monaco team.
Click to expand...
Far from it

 
Its basiaclly the same as any asset in a business, the actual money spent to use it is never taken in to the valuation. No different to when you buy a car really, buy it for £20k, sell it a year later for £21k, profit, happy days. Ignores that you spent £700 on insurance, £250 on Road Tax, £4k on petrol (mor like £40k currently, amiright....), new tyres, service blah blah.

The running costs are never used when valuing an asset.
Click to expand...
Cucurella running costs . . .we never wasted money on a barber, so that has to count for something?

 
Foden needs to leave City, whats the chance of us getting him?
Click to expand...
Zero. Have a good day! … In all seriousness, he’s just signed a new deal. He was on £225k a week on his previous deal and I doubt he’s taken a wage cut.

 
Cucurella running costs . . .we never wasted money on a barber, so that has to count for something?
Click to expand...
I’m liking this idea of player’s ’running costs’. Given the fitness issues many of our players have and the dire state of our medical department, I think the largest overheads are probably bags of frozen peas, Deep Heat and ibuprofen tablets. Lavia costing the most in said items and maybe extra on tubigrip.

 
I know this makes me thick by not understanding this but, if you pay £56 million for something, and after three years of spending 70 grand(?) a week to use it, you then sell it for say £30 million, you’ve actually made an £8 million profit?
Click to expand...
No profit is actually made, that's why despite FFP/PSR clubs are still in financial turmoil. That will be even more so in the coming years when private equity calls in its debts from owners and clubs.

Its basiaclly the same as any asset in a business, the actual money spent to use it is never taken in to the valuation. No different to when you buy a car really, buy it for £20k, sell it a year later for £21k, profit, happy days. Ignores that you spent £700 on insurance, £250 on Road Tax, £4k on petrol (mor like £40k currently, amiright....), new tyres, service blah blah.

The running costs are never used when valuing an asset.
Click to expand...
The lie comes because for FFP/PSR rules to be valid in law, they need to also adhere to established accounting standards, which in turn allowed for clubs to adopt the amortisation methods. The transfer value of a player is an 'intangible' asset and there are set rules for how that is accounted for. The value of the asset is separated from its operating cost. So using the car example, you can account this as a £1k profit on the value of the car, and £4950 on running costs. You make an overall loss, but your investors only care about asset value so they see it as a win, while your accounts warn you that you're bleeding cash and you can just ignore them.

The problem is with a car, you only typically borrow £20k for the purchase. So to the lender they can get their money back. In football, on the other hand, clubs don't have cash, and their accounting basically done on the promise of money from other sources - buying clubs pay instalments, but selling clubs need to spend the cash immediately for FFP/PSR reasons. To physically have cash they go take loans from private lenders secured against the promise of payment. So in reality, the entire PL is interconnected through transfer debt, and that debt is owed to private banks. The clubs themselves are operating as banks that are lending to each other.

Accountant Paul Quinn, an Everton fan, argues this 'shadow banking' is fuelled by FFP/PSR rules and is identical to what caused the 2008 GFC.

He outlines the likely nightmare scenario:

Consider a scenario where a “Tier 1” club (a top debtor like Manchester United or Chelsea) faces a sudden liquidity shock. This could be triggered by a failure to qualify for the Champions League (a revenue drop of £50m-£100m) combined with a restriction on owner funding (e.g., sanctions or owner insolvency).

  1. The trigger: The Tier 1 club, preserving cash to pay wages (which are priority debts), delays a £50m installment payment to a “Tier 2” club (e.g., a mid-table Premier League or top Bundesliga team).
  2. The propagation: The Tier 2 club had budgeted for that receipt to service its own wage bill or transfer debts. Facing a cash hole, it enters technical insolvency. It defaults on payments to “Tier 3” clubs (smaller feeder clubs in France, Portugal, or the EFL).
  3. The systemic halt: The credit market for transfer receivables (factoring) freezes. Insurers who provide credit wrap for these deals withdraw cover due to the heightened risk. Without the ability to factor future income, clubs across the ecosystem lose their working capital lifeline. Liquidity evaporates, leading to widespread distress.
Click to expand...
 
You must log in or register to reply here.
Back
Top