can someone please explain the logic of extending this turd? The logic seems to be the same as stepping in a dogshit and wipeing it off in your pants. The shit from your shoes is gone, but you’re still covered in shit..
as i said, lower amortization, lower wage per year
arthur's book value at june 2024, end of previous financial year: ~18m. his contract was about to last for an other 2 years, so yearly amortization: ~9m. yearly wages: 5m net, ~6.5m gross (he's still on his growth decree contract). with the extension, his contract expires in 3 years, so yearly amortization is 6m, wages down to 3.8m net, ~5m gross
in short, yearly cost:
- before extension: ~9m + ~6.5m = ~15.5m
- after extension: ~6m + ~5m = ~11m
so the club saves 4.5m per year for the next two years, adds 11m for a 3rd. considering that eu has a very low inflation, the time value of money doesn't really count, i'm not even considering it. and an other extension might be on the table, we did this already before his loan to fiorentina
not that i agree with this decision. i'd rather let his contract expire the soonest possible and forget him. from an accounting pov it still makes some sense