It’s party time of course. It is always party time.
Originally posted by @Redslo
Originally posted by @M8D7C
If person X has four blue umbrellas and is given seven green toasters, what time would it be in Brazil?
Bare in mind that person X hasn’t ever watched Game of Thrones, though her sister has.
It’s party time of course. It is always party time.
I think person X has had one too many diso biscuits.
How has the EU exit news gone down overseas, Redslo?
I promise I will be back with less point and more stupid in future questions.
I am not qualified to answer that yet because we are all asleep here. (Well not me right now but you know what I mean.) Trump is in Scotland right now. Someone should ask him what he thinks.
On the other hand, I think it is a remarkably stupid decision and my willingness to insult you all repeatedly about it is only slightly mitigated by the possibility my country will elect Donald Trump president which would be even stupider.
I am almost tempted to blog about it. Let me think about it.
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Dunno if it’s particular stupid question, but I was wonder bout if transfer trading is as profitable as it seems. I.e. if we sell bro for £12m, but buy someone for £10m, I don’t suppose we’ve made £2m. I imagine you have to think about paying out loyalty bonuses to the guy you sold, and sign on bonus to guy you signed, and deduct agent fees, and export duty when you ship pelle to china, and maybe VAT changes things, and legal fees, and sell-on fee to previous club, and percentage you have to give to the training clubs, and so on. Does the FA get a bung too?
I was wonder what the truth of all this is. I wasn’t wonder too hard tho, I didn’t want to hurt myself. I thought I’d ask Redslo instead.
Thank you for asking a complicated question about things I cannot know for sure. The easy answer is that we did not make 2M pounds on the deal because in terms of profit the focus is not on the people we buy and sell at the same time, but on the people we sell based upon what we paid for them and when.
Take for example, Wanyama. If we bought him for 12m and sold him for 12m it looks like we broke even. But in an accounting sense we made a profit of 9m because his 12m cost was amortorized over the 4 year life of his contract so we had already written 9m off.
Of course, it is not that simple because of the various other things you mentioned. I am sure we owe some of the sales proceeds for Wanyama to Celtic–although maybe not because the price was not significantly higher than what we originally paid. I also assume that we owe Wanyama his loyalty bonuses but I have no way of knowing what they are. The same goes for agent fees.
On the other hand, if you are Katharina Liebherr you might be concerned with cash flow as much as profits in which case the two transactions are related. When we buy someone for 12m and sell someone for 12m at the same time, we take a net cash flow hit becuase of the various anicilary items. However, depending on the relative salaries cash flow might be helped or worsed by the two deals. Also, many fees are paid out over time. I doubt we got all cash for Mane–although we might have insisted on all cash for Pelle.
Because knowing the real details of player contracts and transfer deals is not possible for someone like me, I generally ignore all that stuff in my analyses and simply assume that there is a certain amount of friction in the transactions so they are not really as profitable (for the club) as they seem. Supposedly we sold 60m of players so far this summer and only spent 24m so far. I assume we probably are ahead by something in the neighborhood of 30m but that we haven’t received all the cash yet.
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fkn useless