ahem, yes real madrid doesnt understand inflation and hasnt racked time value of money on that purchase price, maybe they should hire you @Adonis 
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Alvaro Morata (26 Viewers)
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ahem, yes real madrid doesnt understand inflation and hasnt racked time value of money on that purchase price, maybe they should hire you @Adonis
So 20 million today < 30 million in a couple of years.
Might end losing money on this deal. But hey it's a win/win.
I understood so much from his post but at first refused that he really believes in it. Then afterwards I read a bunch of sheep cheering for him and his great post and wondered if there was something I misunderstood. I started to feel stupid until I read what X has replied. It was like a huge breath of relief, I felt fresh, smart and all doubts of stupidity disasppeared. Actually they did not disappear they were directly projected towards that post ten fold.
Ok, we pay two thirds of 20 M€, Real wants back, they pay 30 M€ and we ignore paying back the amount we are supposed to pay, if they ask us for the money, we simply tell them "what player? Morata is yours"
Ok, we pay two thirds of 20 M€, Real wants back, they pay 30 M€ and we ignore paying back the amount we are supposed to pay, if they ask us for the money, we simply tell them "what player? Morata is yours"
anyways, maybe the guy didn't know we still have to pay the full amount regardless
To a certain degree this absolutely normal for a big club like juve. But sometimes I see juve like a whore in a premium-brothel who only earns minimum wages because she can´t fucking negotiate. Every once in while comes a big spender and leaves a pogba or a coman for free. This is not an favor because of her good looks or good service, she is an old lady, she has seen better days. It´s more like they don´t give fuck because they shit money.
20 mil 5 year contract amortization 4mil/year after 2 years his book value will be 12 mil(20-4-4). we get 30mil so the positive effect will be 18 mil for the 15/16 budget. But by this time juve only paid 2 of 3 installments of his transfer fee. so in 16/17 the profit would decrease to 10 mil. (of course without the wages they have paid during those 2 years which could amount to 8-10 mil gross)
If they buy him it would be like a free loan without any expenses after 2 years or the costs of one years salary(4-5 mil) after 3 years.
please correct me if i am wrong.
If they buy him it would be like a free loan without any expenses after 2 years or the costs of one years salary(4-5 mil) after 3 years.
please correct me if i am wrong.
I'm not referring to Vidal specifically. But rather the fact that despite domestic success Juventus haven't achieved much in Europe and with both the economy and Serie A lagging behind, there's very few arguments to why players like Vidal and Pogba should stay.
They are competitors. They wanna play with and against the best.
They are competitors. They wanna play with and against the best.
We bought him for 20 million € and his salary will be what? I assume 2.5 million a year - but i don't know. After two years, he would be worth 10 million € on our books (assuming that we don't revalue him as an asset beforehand), so if we get 30 million € for him, it's a fine profit. We would have 'used' 20 million over the two years though, but in return have gotten what he contributes as a player.
There is not one definite answer to it, because it will depend on several scenarios that might pin out different, but in two years, when he only has two years left on his contract (assuming we made a 4-year deal?) 30 is a decent price, unless he explodes and become the new Ronaldo
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Actually the installments doesn't mean anything for the profit. It's just used to secure that we have liquidity to do more trades and investments... As soon as the deal goes through, we would adjust our financial reports with a new asset worth 20 million, take away, what we have to pay now from the cash post and put the rest in accounts payable. At first it all sums to 0, but when time passes and Morata will have less time left on contract, the value of him as an asset will decrease and a similar amount will each year be put as an operational cost, thus giving a loss (you have to plus wages here, which will be taken from the cash).
If Real buys him back, would we get all the cash in one? Really again, it doesn't matter for our financial report, only for liquidity, but i don't know the answer to it... Let's say they don't, then we would remove the value of an asset (10 millions left if fur year contract - you say its a five year contract then it's 12 million left), but will add what we get initially to cash and the rest as a payment receivable, a total of 30 million which will see a isolated profit of 30-12=18.
After they got him back, his value won't decrease for us - so profit won't be lower from here. This deal has a lot of factors, which make it more complicated than normally
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Profit will not always be the same. It depends only on what we get for him and what his book value is at that time. Thats the effect on our report, which could mean profit. During his time here he will decrease in value, thus cumulating a loss (like everybody else in our squad), but that loss should be hold again what he adds in value (which is REALLY hard to measure, since it's firstly a sum of different things, like what he adds to our revenue by selling shirts, marketing etc. and secondly how do you exactly measure what he contributes to the footballing part, where good results have some degree of correlation with our turnover).
EDIT:
Can't write C-U-M-L-ATIVE, since it thinks i wrote C-U-M... haha
There is not one definite answer to it, because it will depend on several scenarios that might pin out different, but in two years, when he only has two years left on his contract (assuming we made a 4-year deal?) 30 is a decent price, unless he explodes and become the new Ronaldo
- - - Updated - - -
Actually the installments doesn't mean anything for the profit. It's just used to secure that we have liquidity to do more trades and investments... As soon as the deal goes through, we would adjust our financial reports with a new asset worth 20 million, take away, what we have to pay now from the cash post and put the rest in accounts payable. At first it all sums to 0, but when time passes and Morata will have less time left on contract, the value of him as an asset will decrease and a similar amount will each year be put as an operational cost, thus giving a loss (you have to plus wages here, which will be taken from the cash).
If Real buys him back, would we get all the cash in one? Really again, it doesn't matter for our financial report, only for liquidity, but i don't know the answer to it... Let's say they don't, then we would remove the value of an asset (10 millions left if fur year contract - you say its a five year contract then it's 12 million left), but will add what we get initially to cash and the rest as a payment receivable, a total of 30 million which will see a isolated profit of 30-12=18.
After they got him back, his value won't decrease for us - so profit won't be lower from here. This deal has a lot of factors, which make it more complicated than normally
- - - Updated - - -
Profit will not always be the same. It depends only on what we get for him and what his book value is at that time. Thats the effect on our report, which could mean profit. During his time here he will decrease in value, thus cumulating a loss (like everybody else in our squad), but that loss should be hold again what he adds in value (which is REALLY hard to measure, since it's firstly a sum of different things, like what he adds to our revenue by selling shirts, marketing etc. and secondly how do you exactly measure what he contributes to the footballing part, where good results have some degree of correlation with our turnover).
EDIT:
Can't write C-U-M-L-ATIVE, since it thinks i wrote C-U-M... haha
of course there are many factors like profits from marketing- anybody knows who has his image rights?- and expenses like his wages.
The deal is not so bad if they buy him we got a player for free or at minimal costs for 2 to 3 years or in best case scenario he wins us single single-handedly a cl and we make huge profits because of him. Worst Case he flops, he cost us 20 mil + wages which could be in theory recovered or partly offset if sold when you factor in inflation of market prices, age...
The deal is not so bad if they buy him we got a player for free or at minimal costs for 2 to 3 years or in best case scenario he wins us single single-handedly a cl and we make huge profits because of him. Worst Case he flops, he cost us 20 mil + wages which could be in theory recovered or partly offset if sold when you factor in inflation of market prices, age...