Douglas Luiz (51 Viewers)
- Thread starter Mark
- Start date
So if this deal is correct, then the economic impact on the P&L is +2m in FY26 and +19.5m in FY27
This is because we get 2.5m for the loan fee + save 9.5m in gross wages but we are still going to expense 10m in amortization on his contract until the obligation is triggered. His book value at the time of the obligation will also be 30m - meaning no capital loss/gain.
If his replacement is O'Riley? I think his market value is ~22m but his wages is low in comparison (5m gross versus 9.5m gross for Luiz). So if they structure it similar - say 2m loan +20m option or obligation. O'Riley would cost us -7m in FY26, and -10m in FY27. So net of the 2 the operation costs us -5m in FY26 but then +9.5m in FY27 and beyond.
This is because we get 2.5m for the loan fee + save 9.5m in gross wages but we are still going to expense 10m in amortization on his contract until the obligation is triggered. His book value at the time of the obligation will also be 30m - meaning no capital loss/gain.
If his replacement is O'Riley? I think his market value is ~22m but his wages is low in comparison (5m gross versus 9.5m gross for Luiz). So if they structure it similar - say 2m loan +20m option or obligation. O'Riley would cost us -7m in FY26, and -10m in FY27. So net of the 2 the operation costs us -5m in FY26 but then +9.5m in FY27 and beyond.
It is just accounting man. Its following EU statutory rules.
The deal worked for both parties and we ensured high plusvulenza on Iling Junior and Barrenechea which were one off big gains and Villa got more gain on Luiz.
The P&L matters because FFP works on P&L and accounting. Too many people focus on the transfer fees without understanding the P&L impact which is what drives everything. Clubs like Juventus and other big clubs, don't have issues necessarily with "cash" - they are restricted by FFP rules mostly.
The deal worked for both parties and we ensured high plusvulenza on Iling Junior and Barrenechea which were one off big gains and Villa got more gain on Luiz.
The P&L matters because FFP works on P&L and accounting. Too many people focus on the transfer fees without understanding the P&L impact which is what drives everything. Clubs like Juventus and other big clubs, don't have issues necessarily with "cash" - they are restricted by FFP rules mostly.
If Luiz is inter-fan, you have to give it to him. He came in like a sloth that couldn't play most of the year. Rest of the year whenever he was handed any minutes he trolled us hard. Either gave away PKs or just simple giveaways to opponents. Never really mustering anything but trying to destroy the team. He is obviously someone who prefers another italian club. The first months whenever he was coming on, everyone was eating up their nails. 'cause we didn't know what kind of idiocy he would accomplish and how detrimental the effects would be. He has to be trolling. Anything else looks just weird from a professional sense.
