Summer Mercato Thread 2019-20 (71 Viewers)
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https://www.uefa.com/MultimediaFiles/Download/Tech/uefaorg/General/02/56/20/15/2562015_DOWNLOAD.pdf
Page 83. Ultimately seems close to Net Income but there are add-backs.. Looks like taxes, depreciation/amortization of fixed/intangible assets (other than player amortization is added back). Also, you can credit expenses related to the woman's team, youth development, finance cost related directly to the construction of fixed assets (ie: if you build a stadium, you can add back the interest expense of the loan). Non-Sporting related revenue must be excluded if its not related to the club, but can be included if related to the club and the associated expenses are also included. There may be other expenses related to the women and youth but I could only find the amortization expense in the financial statement. Also there is likely some interest expense related to the stadium financing (~EUR30M still is owed) but given total interest expense of EUR11M, its probably only like EUR500k-1M. Conclusion: there is a decent buffer. BUT important to note that the limit is $5M on loss. $30M is allowed but only if the shortage is made up with EQUITY. It also can't pay itself a dividend because that counts as an expense and decreases the amount that you can spend on players.
I'll do a quick estimate based off the data I have.
Page 83. Ultimately seems close to Net Income but there are add-backs.. Looks like taxes, depreciation/amortization of fixed/intangible assets (other than player amortization is added back). Also, you can credit expenses related to the woman's team, youth development, finance cost related directly to the construction of fixed assets (ie: if you build a stadium, you can add back the interest expense of the loan). Non-Sporting related revenue must be excluded if its not related to the club, but can be included if related to the club and the associated expenses are also included. There may be other expenses related to the women and youth but I could only find the amortization expense in the financial statement. Also there is likely some interest expense related to the stadium financing (~EUR30M still is owed) but given total interest expense of EUR11M, its probably only like EUR500k-1M. Conclusion: there is a decent buffer. BUT important to note that the limit is $5M on loss. $30M is allowed but only if the shortage is made up with EQUITY. It also can't pay itself a dividend because that counts as an expense and decreases the amount that you can spend on players.
I'll do a quick estimate based off the data I have.
https://www.uefa.com/MultimediaFiles/Download/Tech/uefaorg/General/02/56/20/15/2562015_DOWNLOAD.pdf
Page 83. Ultimately seems close to Net Income but there are add-backs.. Looks like taxes, depreciation/amortization of fixed/intangible assets (other than player amortization is added back). Also, you can credit expenses related to the woman's team, youth development, finance cost related directly to the construction of fixed assets (ie: if you build a stadium, you can add back the interest expense of the loan). Non-Sporting related revenue must be excluded if its not related to the club, but can be included if related to the club and the associated expenses are also included. There may be other expenses related to the women and youth but I could only find the amortization expense in the financial statement. Also there is likely some interest expense related to the stadium financing (~EUR30M still is owed) but given total interest expense of EUR11M, its probably only like EUR500k-1M. Conclusion: there is a decent buffer. BUT important to note that the limit is $5M on loss. $30M is allowed but only if the shortage is made up with EQUITY. It also can't pay itself a dividend because that counts as an expense and decreases the amount that you can spend on players.
I'll do a quick estimate based off the data I have.
Page 83. Ultimately seems close to Net Income but there are add-backs.. Looks like taxes, depreciation/amortization of fixed/intangible assets (other than player amortization is added back). Also, you can credit expenses related to the woman's team, youth development, finance cost related directly to the construction of fixed assets (ie: if you build a stadium, you can add back the interest expense of the loan). Non-Sporting related revenue must be excluded if its not related to the club, but can be included if related to the club and the associated expenses are also included. There may be other expenses related to the women and youth but I could only find the amortization expense in the financial statement. Also there is likely some interest expense related to the stadium financing (~EUR30M still is owed) but given total interest expense of EUR11M, its probably only like EUR500k-1M. Conclusion: there is a decent buffer. BUT important to note that the limit is $5M on loss. $30M is allowed but only if the shortage is made up with EQUITY. It also can't pay itself a dividend because that counts as an expense and decreases the amount that you can spend on players.
I'll do a quick estimate based off the data I have.
If thats the case the whole Pogba thing is hopeless and De Light is only possible if we go for Rabiot
Icardi is only possible if he is a free transfer
Well at least according to this...
We can sell someone before June 30 and do the same thing next year I guess
No. Because fees are amortized. But also it will depend on June’s numbers as well. We haven’t reported our annuals for 18-19. As far as our net spend ability It would depend on a few things and would be relevant next year when the 19-20 financials are reported. 1) where are revenues next year 2) what kind of wage increase do the new signings have? 3) as far as player purchases... we would benefit from any gain on player disposal. We signed Cancelo for 40M. 1 year was depreciated so his amortized cost is 32M. We sell him for 65M so the gain is 28M. Same math applies to any player sale. And the relevant cost would be the annual amortization expense. So say we sign Pogba for 150M for 5 years... that’s an annual amortization of 30M. Assuming those are the only two transactions we do: the net would be -2M against the net income. But then you’d need to find 30M each of the following 4 years as well. But at that point you’re benefitting from revenue growth.
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