The Financial Situation (26 Viewers)

[Zacheryah]

nope dude.
We got 74m from Pogba and we spent 90 on Higuain. Do your maths.

Its not as simple as that

555 is total income


United paid 107 mil for Pogba, but we had to give a couple dozen to Raiola

- Its likely we have 107 mil in that 555 mil and part for raiola is booked in expenses
- Or we only booked what we actually received, the 74 mil.

We lifted the release clause for Higuain

- That is 90 mil, so we probably booked an expense of 90 mil
- However, the actual payment was split in two 45mil portions over 2 years, so it can be that its booked as 45 mil



This is why i asked confirmation

 

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[The Quazis]

This is the first time I've seen a football club generate fucking 100mln profit. It's unreal. Usually clubs are considered healthy if they operate around 0. As lgor Tudor once said, football clubs are not for generating profit.

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[Zacheryah]

Generating actual profit is a bad thing as you pay taxes and dividens with it

 

[Juventino[RUS]]

Generating actual profit is a bad thing as you pay taxes and dividens with it

yes fuck taxes and shareholders money

 

[Amer]

 

[Xperd]

This is the first time I've seen a football club generate fucking 100mln profit. It's unreal. Usually clubs are considered healthy if they operate around 0. As lgor Tudor once said, football clubs are not for generating profit.

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The big football clubs usually don't. But the likes of Madrid and Arsenal have healthy balance sheets.

 

[JuveJay]

That €555m would have put us up there with the very best in the previous financial year. How accurate is the projection?

 

[Xperd]

That €555m would have put us up there with the very best in the previous financial year. How accurate is the projection?

It's from Calcio Finanza who are very accurate with numbers.

We must have probably improved our commercial revenue by quite a bit. Add to the CL money and profits from Morata and Pogba's sales would've buffed up the revenue.

 

[dolph]

Does that take in account the full price for Higuain, or just one installment (as it was split in two for the actual payment ?)

The price of Higuain and any other transfer is depreciated in a straight line over the lenght of the contract. So 90 m over 4 years is 22,5m for the next for years. For sales its the transfer price minus expenses (in this case Raiola's cut) and minus the book value of th player. As Pogba came as a free transfer his book value was probably zero or close to it. I think I read somewhere that the fanancial gain of the deal was around 75m.

 

[Zacheryah]

yes fuck taxes and shareholders money

Yeah, but here is the thing.


We are spreading payments to future years. For example Schick. Why would we do that if we have excess cash ?


I'm thinking someone made these figures to give an idea what our overall income and spending strenght is. But in reality, our management makes it so that it looks like we barely made a mil profit.

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That €555m would have put us up there with the very best in the previous financial year. How accurate is the projection?

555- 107 pogba is 448 which isnt that astronomical tbh

 

[JuveJay]

Yeah, but here is the thing.


We are spreading payments to future years. For example Schick. Why would we do that if we have excess cash ?


I'm thinking someone made these figures to give an idea what our overall income and spending strenght is. But in reality, our management makes it so that it looks like we barely made a mil profit.

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555- 107 pogba is 448 which isnt that astronomical tbh

That's still over €100m increase in one season, which is not astronomical but still a huge leap from the trend.

 

[Zacheryah]

The price of Higuain and any other transfer is depreciated in a straight line over the lenght of the contract. So 90 m over 4 years is 22,5m for the next for years. For sales its the transfer price minus expenses (in this case Raiola's cut) and minus the book value of th player. As Pogba came as a free transfer his book value was probably zero or close to it. I think I read somewhere that the fanancial gain of the deal was around 75m.

So in the 555 mil, only 75 mil from Pogba is calculated, whilst the expenses only calculate 22.5+salary mil for higuain ?


Then this income is insane

It's from Calcio Finanza who are very accurate with numbers.

We must have probably improved our commercial revenue by quite a bit. Add to the CL money and profits from Morata and Pogba's sales would've buffed up the revenue.

Quite incredible how we are building these figures comming out of serie a.

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That's still over €100m increase in one season, which is not astronomical but still a huge leap from the trend.

Ddint we make something like 379 mil excluding sales last year ?

 

[dolph]

Generating actual profit is a bad thing as you pay taxes and dividens with it

WTF.... you might want to rethink that one.

 

[Zacheryah]

WTF.... you might want to rethink that one.

I might. My reasoning was :

If you generate a turnover of 100 mil and have 50 mil expenses you have 50 mil profit. On this profit you are taxed and on the basis of it you'll turn out cash on profit to shareholders

If you generate 100 mil and have 50 mil expenses, you make 50 mil investments for the comming year, so your profit is 0 meaning your taxes are much lower and you barely turn out to shareholders

 

[s4tch]

That €555m would have put us up there with the very best in the previous financial year. How accurate is the projection?

i was wondering about the same a couple of months ago. if you add the plusvalenza from the pogba sale (~75m), the improved cl prize money (101m vs 76m from previous year), you only have an improvement of ~100m. we're still looking for an other ~60-70m.

but the estimate must be accurate somehow, as i keep reading this from different sources. let's wait and see the club's financial report.

 

[Xperd]

If you exclude sales/player trading, our revenue was €340M for 2015-16

From 16-17, prize money for the CL has increased, we've increased ticket prices too AFAIK, we're signing a lot of sponsorship deals from abroad, perhaps the jersey sales might have increased too. Even discounting profits from Pogba and Morata sales, it's indeed a big leap in revenue and once Deloitte money league publishes official figures that doesn't include revenues from player trading, we'll have a better picture regarding the increase i guess.

 

[JuveJay]

Either way it can only be good news.

 

[dolph]

So in the 555 mil, only 75 mil from Pogba is calculated, whilst the expenses only calculate 22.5+salary mil for higuain ?


Then this income is insane



Quite incredible how we are building these figures comming out of serie a.

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Ddint we make something like 379 mil excluding sales last year ?

Thats correct on Higuain and Pogba. Then you have to factor in other transfers aswell. My guess is fx that Coman is also included this year. As he was a free transfer his book value was probably zero, so the full 21m paid this year is probably profit. Might be others aswell.

 

[Zacheryah]

If you exclude sales/player trading, our revenue was €340M for 2015-16

From 16-17, prize money for the CL has increased, we've increased ticket prices too AFAIK, we're signing a lot of sponsorship deals from abroad, perhaps the jersey sales might have increased too. Even discounting profits from Pogba and Morata sales, it's indeed a big leap in revenue and once Deloitte money league publishes official figures that doesn't include revenues from player trading, we'll have a better picture regarding the increase i guess.

Isnt that due soon ?

 

[dolph]

I might. My reasoning was :

If you generate a turnover of 100 mil and have 50 mil expenses you have 50 mil profit. On this profit you are taxed and on the basis of it you'll turn out cash on profit to shareholders

If you generate 100 mil and have 50 mil expenses, you make 50 mil investments for the comming year, so your profit is 0 meaning your taxes are much lower and you barely turn out to shareholders

Its correct that a Company has two choices. Either invest and go for higher future earning, or pay dividents now. Its a planning and political issue in most companies, but Profit is never a bad thing.