The Financial Situation (28 Viewers)
- Thread starter ReBeL
- Start date
This
Salary cuts reduce OpEx which saves the company $$ and minimally reduces the bleeding at best. It doesn't generate additional revenue. So at best the club (all clubs) will finish their fiscal year in the red.
Missing out on CL tv revenue share and any potential stage prize $$ will obviously hurt but this point it's just a matter of how much of a loss will the club record at the end of the fiscal year.
Salary cuts reduce OpEx which saves the company $$ and minimally reduces the bleeding at best. It doesn't generate additional revenue. So at best the club (all clubs) will finish their fiscal year in the red.
Missing out on CL tv revenue share and any potential stage prize $$ will obviously hurt but this point it's just a matter of how much of a loss will the club record at the end of the fiscal year.
i will, promise
in the meantime, proper numbers here:
https://www.calcioefinanza.it/2019/09/05/calciomercato-juventus-e-impatto-sul-bilancio-2020/
in the meantime, proper numbers here:
https://www.calcioefinanza.it/2019/09/05/calciomercato-juventus-e-impatto-sul-bilancio-2020/
We paid 22m for Pellegrini? why would we turn around and look for plusvalenza? Am I reading that chart correctly? Romero for 26M?
so usually, when you sign a work contract, it will contain your GROSS salary, usually per month. for football players, the wages are usually defined on a yearly basis. either way, the contract contains the gross wages.
now, back to the gross wages. in italy, there are two deductions from your gross salary: personal income tax and social contributions.
now we can calculate the gross salary, but it's still not the whole picture. not only the taxable person, but the company also pays some social contributions, something around 30% based on the gross salary. that's so fucking complicated that i won't even try to explain it, and even calcioefinanza, experts in italian taxation use an other simplified scheme for it: they simply multiply the net salary by 1.75 for most players (and 1.52 for those who can benefit from the new tax exemption, like ramsey, danilo or rabiot). some other sites might use 1.85 too, and to be honest, either could be accurate depending on benefits, allowances, insurances and shit. if calcioefinanza are fine with 1.75, then i'm fine with it too.
now, back to the gross wages. in italy, there are two deductions from your gross salary: personal income tax and social contributions.
- contributions are easy to calculate: you'll pay 9.19% of your wages.
- personal income tax is a progressive tax in many countries, including italy. it means that those with a higher salary will pay proportionally higher taxes too. they have multiple tax rates, ranging from 23 to 43%. (that's how the 1.43 multiplicator from your calculation came from.) but you never use 43% for your whole salary, only your wages above 75k€ are taxed with that rate. since usually 75k is a small part of a footballer's salary, some people use the 43% rate for the whole salary for easier calculation. your income tax rates look like this:
- up to €15 000: 23%
- €15 001 - €28 000: 27%
- €28 001 - €55 000: 38%
- €55 001 - €75 000: 41%
- over €75 001: 43%
- taxable amount: 10.000k
- social contributions: 10.000k x 9.19% = 919k
- income tax, using the above table: 15k x 23% + 13k (amount in the second bracket) x 27% + 27k x 38% + 20k x 41% + 9.006k x 43% = 3.898k
- some explanation: social contributions are deductible from the gross salary, hence the 9.006k
- total deductions: 4.817k
- yearly net salary: 5.183k
GROSS - GROSS * 9.19% - 25.420€ - (GROSS - GROSS * 9.19% - 75.000€) * 43% = 31.000.000€now we can calculate the gross salary, but it's still not the whole picture. not only the taxable person, but the company also pays some social contributions, something around 30% based on the gross salary. that's so fucking complicated that i won't even try to explain it, and even calcioefinanza, experts in italian taxation use an other simplified scheme for it: they simply multiply the net salary by 1.75 for most players (and 1.52 for those who can benefit from the new tax exemption, like ramsey, danilo or rabiot). some other sites might use 1.85 too, and to be honest, either could be accurate depending on benefits, allowances, insurances and shit. if calcioefinanza are fine with 1.75, then i'm fine with it too.