The Financial Situation (17 Viewers)
- Thread starter ReBeL
- Start date
this answers some questions, but doesn't clearly answer the most significant one - will the reduced tax apply to foreigners who have been living in Italy for a few years already like Ronaldo or Matuidi? for Ronaldo's 30m a year the difference between 47% and 30% is 5.1m lol. The overall savings could be around 15-20m a year which is huge.
Just a quick heads up on figures here.
I don’t know if this is right but I remember reading that Aaron Ramsey is going to get paid GBP300k-400k a week! – however I think that must be before taxes….so think EU18m pre-tax and 9m net.
I am telling you this because this is how the CLUB does its numbers. FFP is based on the P&L.
So I did some numbers on a possible scenario of transfers which would be somewhat realistic:
First year P&L impact
IN (4):
Ramsey. Wages = -18m plus EU4m one off fee = -22m
De Ligt. 70m transfer fee with 5 year contract = 14m in amortization +8.5m net wages or EU17m before tax. Total annual cost = -EU31m
Rabiot. Net wages of EU7.5m plus on off fee of I am guessing 4m. Total gross impact is -EU19m.
Pereira (to replace Cancelo). Transfer fee of ~30m on a 5 year contract = 6m in amortization +6m in gross wages (same as Cancelo) = total cost of EU-12m.
Total cost of the above = -EU84m to the P&L in FY20.
OUT (4):
Barzagli. Wages were 6m gross.
Caceres. Wages were 2m gross.
Cancelo. His wages were 6m gross plus amortization of 8m a year. His book value after 1 year on contract is now 32m. Hence if he was sold to City for EU65m we would book a gain of EU33m plus save 14m on his annual cost. Thus impact to P&L is +EU47m.
Khedira. Annual gross wage of EU8m a year. Book value is zero (got him on a free ages ago). If he was sold for 8m, total impact would be +EU16m.
Total impact from those departures = +EU71m
So in other words, if the above happens we are squarish.
Now other considerations…..
I don’t know if this is right but I remember reading that Aaron Ramsey is going to get paid GBP300k-400k a week! – however I think that must be before taxes….so think EU18m pre-tax and 9m net.
I am telling you this because this is how the CLUB does its numbers. FFP is based on the P&L.
So I did some numbers on a possible scenario of transfers which would be somewhat realistic:
First year P&L impact
IN (4):
Ramsey. Wages = -18m plus EU4m one off fee = -22m
De Ligt. 70m transfer fee with 5 year contract = 14m in amortization +8.5m net wages or EU17m before tax. Total annual cost = -EU31m
Rabiot. Net wages of EU7.5m plus on off fee of I am guessing 4m. Total gross impact is -EU19m.
Pereira (to replace Cancelo). Transfer fee of ~30m on a 5 year contract = 6m in amortization +6m in gross wages (same as Cancelo) = total cost of EU-12m.
Total cost of the above = -EU84m to the P&L in FY20.
OUT (4):
Barzagli. Wages were 6m gross.
Caceres. Wages were 2m gross.
Cancelo. His wages were 6m gross plus amortization of 8m a year. His book value after 1 year on contract is now 32m. Hence if he was sold to City for EU65m we would book a gain of EU33m plus save 14m on his annual cost. Thus impact to P&L is +EU47m.
Khedira. Annual gross wage of EU8m a year. Book value is zero (got him on a free ages ago). If he was sold for 8m, total impact would be +EU16m.
Total impact from those departures = +EU71m
So in other words, if the above happens we are squarish.
Now other considerations…..
- Higuain. If he stays with us he only has 1 year left on his contract and it would cost us E30m between the last amortization and gross wages. If he stays he would be like acquiring someone like Chiesa. If Chiesa cost 70m, his amortization would be 14m and his wages would be less than 12m gross.
- Pogba. If we signed him for 120m on a 5 year contract his amortization would 24m and his wages would be around 24m gross. He would cost close to 50m a year.
- Costa. He currently costs us 22m a year between his amortization and wages. If he was sold for 50m we would make a 20m gain on his book value. He could cover Pogba’s cost for 1 year.
- Dybala. If he was sold for 80m that would almost be pure profit given that he has run down his book value with us substantially over the years. He also has 14m in gross wages.
- Mandzukic. His wages are 11m gross per year and his book value is close to zero. Anything we get for him would be close to pure profit.
- Kean. Zero book value and low wages. He is pure profit on a transfer. Perhaps an idea would be sell to Ajax with an option to buy back in a way of getting De Ligt and satisfying Raiola.
good job. just a couple of remarks:
- by the new rules, the gross/net ratio for non-italians is not ~2 (it was 1,85 to be precise), but closer to 1,4. so in case de ligt gets a 17m gross salary, it would be around 12m net. (and that's what raiola's request is rumored to be.)
- pereira for 30m would be a no brainer. i think he'd cost closer to 50m though.
- higuain's yearly cost is 36m, including wages and amortization.
- let's not sell every striker we have, and especially not for someone as expensive and as toxic as icardi. (you didn't mention him, but he's the only prima punta we're linked with currently.)
- by the new rules, the gross/net ratio for non-italians is not ~2 (it was 1,85 to be precise), but closer to 1,4. so in case de ligt gets a 17m gross salary, it would be around 12m net. (and that's what raiola's request is rumored to be.)
- pereira for 30m would be a no brainer. i think he'd cost closer to 50m though.
- higuain's yearly cost is 36m, including wages and amortization.
- let's not sell every striker we have, and especially not for someone as expensive and as toxic as icardi. (you didn't mention him, but he's the only prima punta we're linked with currently.)
