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Thread: Andrea Barzagli

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    Juventuz regular Lorena's Avatar

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    Quote Originally Posted by Alen View Post
    You sure?
    I think they were paying the entire fee at once and apparently that was the main reason for selling him (we needed an influx of cash at the very moment). More likely these are potential money that Wolfsburg need to pay us depending on Diego's appearances and success with the team.
    It was something about that,I'm sure... I'll try to find it somewhere and post it
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    Tzu Dostoevsky's Avatar

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    Umm I don't think they were paying the entire fee. I think those were installments, and ye, for some reason I also think it's 3 installments.

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    http://www.juventus.com/site/filesit..._diego_eng.pdf

    Seems like media bs, didn't that story come from g***.com anyway?
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    Juventuz legend Alen's Avatar
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    Quote Originally Posted by Lorena View Post
    It was something about that,I'm sure... I'll try to find it somewhere and post it
    I really hope we didn't sell him in installments. Not because of something else, but solely because the Diego to Wolfsburg transfer will stop making any sense at all.
    I wondered why did we sell him. Someone here made a logical argument that we sold him simply because Marotta had to bring some money and the 15.5m eur from Diego were the only choice. But if we sold him in three installments and got 5m for the first one (which were immediately spent on Quag's and Rinaudo "loans") then I don't see any logic at all in this transfer.

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    As crazy as it sounds, Wolfsburg paying Diego's fee at once & up front, does not necessarily mean we have received the money on our account.

    It's much more an accounting process, than it is actually receiving the money anyway. Kinda difficult to explain more clearly, without getting too technical.
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    Juventuz legend Alen's Avatar
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    Quote Originally Posted by JuveJay View Post
    http://www.juventus.com/site/filesit..._diego_eng.pdf

    Seems like media bs, didn't that story come from g***.com anyway?
    Yes, I read that before, that's why this confused me. After that many rumors came in about how Wolfsburg didn't pay the entire fee at once and we let them do that (Dzeko), but it was never confirmed with an official statement.
    I guess it was all BS.

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    Quote Originally Posted by Buck Fuddy View Post
    As crazy as it sounds, Wolfsburg paying Diego's fee at once & up front, does not necessarily mean we have received the money on our account.

    It's much more an accounting process, than it is actually receiving the money anyway. Kinda difficult to explain more clearly, without getting too technical.
    It does mean that. It's a contract that stands only when one party pays the entire fee (if we're talking about straight transfer). They do not consider it as a transfer until money gets in our bank.

    It actually doesn't have to do anything with accounting but law, and business that involves contracts.

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    Juventuz regular Lorena's Avatar

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    Quote Originally Posted by Alen View Post
    I really hope we didn't sell him in installments. Not because of something else, but solely because the Diego to Wolfsburg transfer will stop making any sense at all.
    I wondered why did we sell him. Someone here made a logical argument that we sold him simply because Marotta had to bring some money and the 15.5m eur from Diego were the only choice. But if we sold him in three installments and got 5m for the first one (which were immediately spent on Quag's and Rinaudo "loans") then I don't see any logic at all in this transfer.
    I know that it makes no sense, but it is just one more thing Marotta did...

    ''Andrea Barzagli is expected to meet with Wolfsburg today to ask that an agreement be reached with Juventus.

    The 29-year-old has been linked with a move to Turin for weeks and reports in Italy claim he has already agreed personal terms.

    However, Wolfsburg are said to be unhappy with the fact Juventus think they can get the player for free when he has six months left on his contract.

    Juventus had apparently proposed to reduce one of Wolfsburg's installments for Diego in accordance with the Barzagli deal, but the Bundesliga outfit want cash.''
    Platini:"If they consider themselves true supporters and they really love the side, they will stay near them doing the tough times. This is how a person can be considered a true fan.''

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    Quote Originally Posted by Buck Fuddy View Post
    As crazy as it sounds, Wolfsburg paying Diego's fee at once & up front, does not necessarily mean we have received the money on our account.

    It's much more an accounting process, than it is actually receiving the money anyway. Kinda difficult to explain more clearly, without getting too technical.
    Please feel free to get more technical.

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    Quote Originally Posted by Dule90 View Post
    It does mean that. It's a contract that stands only when one party pays the entire fee (if we're talking about straight transfer). They do not consider it as a transfer until money gets in our bank.

    It actually doesn't have to do anything with accounting but law, and business that involves contracts.
    You're wrong this time, Dule.

    Trust me, I've seen enough (work- related) cases when it comes to this. And it has everything to do with (creative) accounting.
    "Law", be it economic or sporting, could get involved in a later stadium though, in case of some dispute.


    @ Red

    Wolfsburg agreed to pay the entire fee at once. Meaning we sent them 1 invoice (for lack of a better word). When the invoice is made out, most (all afaik) big companies consider the sale to be finalized: you no longer have his contract on your books. On one side the entry is made (negative if you will) of one less player, on the other side (a positive) entry is made for the agreed amount. This does not mean you have received the cash.
    The actual credit collection has very little to do with it. It's obviously very important, but has little to do with strict accounting.

    Furthermore: we know absolutely nothing about the agreed payment terms (has nothing to do with installments). It could be up front, it could be within 30 days, it could be within 120 days, it could be anything. Regardless, you'll still book it as one entry, in the current fiscal year.
    Unlike when you agree to pay in three installments: you'll book a part in this fiscal year, a part in the next, and so on.

    Simple example: my company sells & invoices a certain amount each month. Let's say it's 1 million€ in January 2011. This entire million will be booked as sales / revenue in January 2011. But this does not mean that we received 1 million€ on our bank account. Realistically speaking, it would mean about 400.000 - 500.000€.
    The rest of those January sales will probably end up on our account in Feb, March, April, ..., but they will have been booked (the sales) in January.

    Hope this makes some sense, it's difficult to give a better explanation, especially in a foreign language.


    Clearly, if Wolfsburg does not honor their side of the agreement, that's when the law could come into this, but we don't know that.
    Last edited by Buck Fuddy; 26.01.2011 at 17:53.
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    Quote Originally Posted by Buck Fuddy View Post
    You're wrong this time, Dule.

    Trust me, I've seen enough (work- related) cases when it comes to this. And it has everything to do with (creative) accounting.
    "Law", be it economic or sporting, could get involved in a later stadium though, in case of some dispute.
    Maybe.

    I think it's contract related because if the price is accepted then the contract is valid and other party expects the payment. Whole payment in this case. If it doesn't happen that way, you can get on court and there are contract is not considered valid no more. I think you’re mixing some things up as that doesn’t count in football. In companies when you buy some goods and agree on some price you pay it in 2-3 months, but then again, it’s a different contract signed.

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    Quote Originally Posted by Buck Fuddy View Post
    As crazy as it sounds, Wolfsburg paying Diego's fee at once & up front, does not necessarily mean we have received the money on our account.

    It's much more an accounting process, than it is actually receiving the money anyway. Kinda difficult to explain more clearly, without getting too technical.
    The only issue I'd have with that is if you compare it with the Poulsen sale they clearly state there are two installments, so why the change in wording?

    http://www.juventus.com/site/filesit...oulsen_eng.pdf
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    Quote Originally Posted by JuveJay View Post
    The only issue I'd have with that is if you compare it with the Poulsen sale they clearly state there are two installments, so why the change in wording?

    http://www.juventus.com/site/filesit...oulsen_eng.pdf
    Look above, I've tried to clarify a bit.

    In short: what & when you book in your accounts (receivable) is, at times, more important than what you receive on your bank account.
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    I know what you mean, it's clear accounting Buck. You're studying Economics?

    I know how that works with companies, but I don't think it's the same story with football. Look into Business Law, it gives a different angle for the whole story - where everything is based on type of contract.

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    Cheers, Buck.

    I guessed that was the sort of thing you were getting at.

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    Quote Originally Posted by Dule90 View Post
    Maybe.

    I think it's contract related because if the price is accepted then the contract is valid and other party expects the payment. Whole payment in this case. If it doesn't happen that way, you can get on court and there are contract is not considered valid no more. I think you’re mixing some things up as that doesn’t count in football. In companies when you buy some goods and agree on some price you pay it in 2-3 months, but then again, it’s a different contract signed.
    You're mixing actual payments (receiving money) with accounting. It doesn't work like that.

    It obviously also has to do with Juve's accounting / financial reporting type(s), I looked at it from the most common business perspective.
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    Oh I know what you mean, I have done some credit control and know how it works in terms of the payment procedure. That payment is yours, no matter what the payment terms are, how it is structured.

    What I don't get is why the Diego deal is classed as payment immediately on execution of the contract (assuming that is indeed spread over installments), yet the Poulsen deal says half is upon execution of the contract and the other half is 2011 'to be paid in two installments'. It's possible that the wording is simply contradictory, but assuming the terminology used is uniform then it suggests that we aren't guaranteed the second sum for Poulsen?
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