really excited to see him play, his ability to create space for the forwards will be crucial in our attacking play
Buy on AliExpress.com
Alvaro Morata - ST - Real Madrid (142 Viewers)
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Buy on AliExpress.com
There are other things to consider here then, how will we decide to finance this, on how many installments we have agreed upon with Real; if Real decides to buy him back will they pay the full amount immediately. These things make a difference and I'd say getting 30m in a single installment is better deal than spreading payments, even slightly more lucrative ones, over the larger period of time. Too many uncertainties at this point, we don't even know the basic terms of agreement. Lot of other variables here that we may also consider, how marketable he might turn out to be, jersey sales, number of Spanish fans that we might gain, etc...
Accounting profit is not irrelevant by any means, especially for Juve that aren't likely to break even any time soon. After all, accounting profit has direct impact on our equity, that is likely to reach worrying levels.
Accounting profit is not irrelevant by any means, especially for Juve that aren't likely to break even any time soon. After all, accounting profit has direct impact on our equity, that is likely to reach worrying levels.
so we take all the risk, and then madrid can just get for 15 mil a top player 2 years from now, factor in football inflation, thats about 7-8 mil now, all the while taking 0 risks. While we stand to lose a key player and make about 5 mil profit, where i come from thats called rape 
It makes me mad to see people defend this deal.
so we take all the risk, and then madrid can just get for 15 mil a top player 2 years from now, factor in football inflation, thats about 7-8 mil now, all the while taking 0 risks. While we stand to lose a key player and make about 5 mil profit, where i come from thats called rape
For example, you build a wireless network, it costs you $10 million, and amortize it over 10 years. You'll recognize $1 million per year in D&A, but that outlay occurs in year one. If revenue is $2 million, cash costs are $1 million and maintenance expenditures (ie: investment) are only $0.2 million, assuming 25% tax rate.
Accounting Profit:
=$2-1-1= 0*(1-.25) = 0
Free Cash Flow
EBIT*(1-T) + D&A - Maintenance Expenditures = ($2-2)*(1-.25) + 1 - 0.2 = $0.8 million
In finance you never rely on accounting earnings because its not real life, its book keeping. In the above case, if you relied on accounting earnings you would come to the conclusion that you had no money to invest in new opportunities. Using Cash Flow, you realize you have $0.8 million.
The same applies for Juventus - I don't care what the accounting profit is, as long as the business is generating cash. There are all sorts of useless non-cash expenses used in accounting practices.
For BV of equity, you perform a dividend recap and suck out all the equity out of a business, but its market value would still be positive. BV of Equity =/= MV of Equity. I would argue in the case of sports businesses, historical earnings don't really matter. The value of live sports has been growing exponentially and regardless of profitability, the value of these businesses has been following suit.
Accounting Profit:
=$2-1-1= 0*(1-.25) = 0
Free Cash Flow
EBIT*(1-T) + D&A - Maintenance Expenditures = ($2-2)*(1-.25) + 1 - 0.2 = $0.8 million
In finance you never rely on accounting earnings because its not real life, its book keeping. In the above case, if you relied on accounting earnings you would come to the conclusion that you had no money to invest in new opportunities. Using Cash Flow, you realize you have $0.8 million.
The same applies for Juventus - I don't care what the accounting profit is, as long as the business is generating cash. There are all sorts of useless non-cash expenses used in accounting practices.
For BV of equity, you perform a dividend recap and suck out all the equity out of a business, but its market value would still be positive. BV of Equity =/= MV of Equity. I would argue in the case of sports businesses, historical earnings don't really matter. The value of live sports has been growing exponentially and regardless of profitability, the value of these businesses has been following suit.
WTF is Marotta doing?
22MI on an unproven Spanish youngster who plays as a CF, a position that already has a starter, so he'll be basically a backup.
Unless he can play as an SS/winger or he has good offers for Llorente, this is such an idiotic transfer.
If he fails, we fail. If he succeeds, he'll be worth much more than 30M in 2 years, and Madrid will make great business at our expenses.
This looks like shit.
22MI on an unproven Spanish youngster who plays as a CF, a position that already has a starter, so he'll be basically a backup.
Unless he can play as an SS/winger or he has good offers for Llorente, this is such an idiotic transfer.
If he fails, we fail. If he succeeds, he'll be worth much more than 30M in 2 years, and Madrid will make great business at our expenses.
This looks like shit.
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