Giuseppe Marotta (77 Viewers)
- Thread starter Mark
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True. But at the same time you pretty much summed up the reason clubs use this method of purchasing. So they don't have to make a really big, single outlay. If we would have paid for Melo and Diego all cash up front, one time, the losses we incurred that year would have been a much bigger negative number then they actually were. Plus, clubs need operating capital and unless you're a moneybags club paying such sums in a single transaction isn't really viable unless it's reinvestment on an asset you recently sold.
At the end of the day you're still paying the same amount, yes. But in the short term it does offer clubs slightly more freedom in their spending.
At the end of the day you're still paying the same amount, yes. But in the short term it does offer clubs slightly more freedom in their spending.
I know it's done for accounting purposes, I'm pretty familiar with how all this stuff works. But the losses (actually, it's not really losses, expenditure would be more apt) remain pretty much the same, simply because we always use this tactic.
This summer, I would assume somewhere in July we still have to make payments for both Melo & Diego, as well as the arrivals of last summer. So, say we have a budget of 60 million & do sign Aguero (we won't, I know
) for 45 million, payable in three equal installments.
I'm pretty sure that quite a lot of people would be counting this as 60-15 = 45 left, still enough money left for other big signings.
But that is completely wrong, since it should be 60-15-8(?, Diego) - 8 (?, Melo) - 6 (?, Bonucci) - ...
I'm not sure how exactly Juve accounts for our signings though. I assume accruals are created based on future costs, based on the budget in the fiscal year in which the player was signed. Which, in the example of the Aguero signing would end up meaning 15 left (60-45) of the starting budget. But that would also obviously mean that you don't have to take the earlier signings anymore, even if you still do need to make the payment.
Problem is that a lot of people mix both possibilities: only taking 1/3 out of the budget with new signings, but chalking the previous signings up to previous budgets.
Now, someone, please tell me this makes perfect sense.
This summer, I would assume somewhere in July we still have to make payments for both Melo & Diego, as well as the arrivals of last summer. So, say we have a budget of 60 million & do sign Aguero (we won't, I know
) for 45 million, payable in three equal installments.I'm pretty sure that quite a lot of people would be counting this as 60-15 = 45 left, still enough money left for other big signings.
But that is completely wrong, since it should be 60-15-8(?, Diego) - 8 (?, Melo) - 6 (?, Bonucci) - ...
I'm not sure how exactly Juve accounts for our signings though. I assume accruals are created based on future costs, based on the budget in the fiscal year in which the player was signed. Which, in the example of the Aguero signing would end up meaning 15 left (60-45) of the starting budget. But that would also obviously mean that you don't have to take the earlier signings anymore, even if you still do need to make the payment.
Problem is that a lot of people mix both possibilities: only taking 1/3 out of the budget with new signings, but chalking the previous signings up to previous budgets.
Now, someone, please tell me this makes perfect sense.
More heads to smash :excited:
Instead of getting rid of dead wood we sign more,we dont bring matri's price down,the balding bitch is unable to get rid of amauri or IAQ. Worst part is he might be able to sign just ONE quality player and the freaking fucking society will proclaim him a saint again.
Just DIE!
Instead of getting rid of dead wood we sign more,we dont bring matri's price down,the balding bitch is unable to get rid of amauri or IAQ. Worst part is he might be able to sign just ONE quality player and the freaking fucking society will proclaim him a saint again.
Just DIE!
