comment by rosso is facking happy (U17054)
posted 13 hours, 8 minutes ago
comment by Jenius99 (U4918)
posted 3 hours, 11 minutes ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 6 hours, 52 minutes ago
comment by Jenius99 (U4918)
posted 17 seconds ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 2 minutes ago
comment by Jenius99 (U4918)
posted 56 seconds ago
One problem with such a debt is that the clubs mostly over value their assets. So its amazingly difficult to buy from them. They never reduce their price to sell because that actually 'realizes' their value as a loss on the balance sheet.
----------------------------------------------------------------------
Malcom and Rakitic apparently going reasonably 'cheap' though. Think Malcom would be a good signing for Arsenal.
----------------------------------------------------------------------
You really don't know how much they are asking for those players.
----------------------------------------------------------------------
I should have written "reportedly" instead of "apparently" maybe but what with this being a sports debating site I thought it would be okay.
----------------------------------------------------------------------
No its fair enough but let me explain.
Players are treated as assets. Those assets have a value usually what the club paid for them. They are then depreciated or revalued depending on age, performance etc.
Now if Barca spent £60m on Malcom and they sell him for less Barca make a loss on the player on the balance sheet. That means the club is worth less by the amount they lost on the player. That means the interest rates on that goes up. So Barca cannot sell players for less than they bought them. Now obviously someone like Rakitic has depreciated on the balance sheet so any thing they get for him is a profit. However again that doesn't mean they will sell for a discount. They will try to get the max they can get for him precisely because they want to pay the debt.
So the idea that if a club is in heavy debt they have to sell players cheap is actually the opposite of what happens. Usually clubs that are doing well but don't want the player's salary clogging up FFP tend to sell players cheaply.
----------------------------------------------------------------------
You're not quite right there.
Barca signed Malcom for EUR41m on a five year contract. That contract will amortise linearly over five years as far as FFP is concerned, so his value for the purposes of the discussion is now around EUR33m.
If they were to keep him for the next twelve months, they'd lose another EUR8m or so in the amortisation of his contract, as well as his wages.
If he's on EUR50k per week (I've got no idea what the actual figure is, this is just for argument's sake), they'd be shelling out EUR2.5m in wages, bringing the total cost of keeping him to EUR10.5m as far as the accountants are concerned.
However, if they didn't bring a replacement in (again, just for argument's sake), selling him now for EUR23m would actually leave them better off in the eyes of the FFP rules in twelve months' time.
----------------------------------------------------------------------
I wasn't being exact just trying to make the point that a fire sale is not what a club does when it is in debt. The point is Barca are not worried about ffp. They are more concerned about rising interest rates and their asset values. Though I am sure the ECB are obsessed with negative rates.
comment by Jenius99 (U4918)
posted 15 minutes ago
comment by rosso is facking happy(U17054)
posted 13 hours, 8 minutes ago
comment by Jenius99 (U4918)
posted 3 hours, 11 minutes ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 6 hours, 52 minutes ago
comment by Jenius99 (U4918)
posted 17 seconds ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 2 minutes ago
comment by Jenius99 (U4918)
posted 56 seconds ago
One problem with such a debt is that the clubs mostly over value their assets. So its amazingly difficult to buy from them. They never reduce their price to sell because that actually 'realizes' their value as a loss on the balance sheet.
----------------------------------------------------------------------
Malcom and Rakitic apparently going reasonably 'cheap' though. Think Malcom would be a good signing for Arsenal.
----------------------------------------------------------------------
You really don't know how much they are asking for those players.
----------------------------------------------------------------------
I should have written "reportedly" instead of "apparently" maybe but what with this being a sports debating site I thought it would be okay.
----------------------------------------------------------------------
No its fair enough but let me explain.
Players are treated as assets. Those assets have a value usually what the club paid for them. They are then depreciated or revalued depending on age, performance etc.
Now if Barca spent £60m on Malcom and they sell him for less Barca make a loss on the player on the balance sheet. That means the club is worth less by the amount they lost on the player. That means the interest rates on that goes up. So Barca cannot sell players for less than they bought them. Now obviously someone like Rakitic has depreciated on the balance sheet so any thing they get for him is a profit. However again that doesn't mean they will sell for a discount. They will try to get the max they can get for him precisely because they want to pay the debt.
So the idea that if a club is in heavy debt they have to sell players cheap is actually the opposite of what happens. Usually clubs that are doing well but don't want the player's salary clogging up FFP tend to sell players cheaply.
----------------------------------------------------------------------
You're not quite right there.
Barca signed Malcom for EUR41m on a five year contract. That contract will amortise linearly over five years as far as FFP is concerned, so his value for the purposes of the discussion is now around EUR33m.
If they were to keep him for the next twelve months, they'd lose another EUR8m or so in the amortisation of his contract, as well as his wages.
If he's on EUR50k per week (I've got no idea what the actual figure is, this is just for argument's sake), they'd be shelling out EUR2.5m in wages, bringing the total cost of keeping him to EUR10.5m as far as the accountants are concerned.
However, if they didn't bring a replacement in (again, just for argument's sake), selling him now for EUR23m would actually leave them better off in the eyes of the FFP rules in twelve months' time.
----------------------------------------------------------------------
I wasn't being exact just trying to make the point that a fire sale is not what a club does when it is in debt. The point is Barca are not worried about ffp. They are more concerned about rising interest rates and their asset values. Though I am sure the ECB are obsessed with negative rates.
----------------------------------------------------------------------
Fair enough
comment by Michael Edwards FC {Proud owner of the 5 000 000th comment} (U2720)
posted 5 hours, 5 minutes ago
comment by Busby (U19985)
posted 10 hours, 49 minutes ago
If he weren't such a cant, Suarez would be exactly what we need right now. A winner, a goalscorer, experience and a leader.
----------------------------------------------------------------------
You guys hired Moyes & Mourinho...
----------------------------------------------------------------------
Think there's just too much bad blood. Don't think the fans would take to him and he needs to feel loved.
comment by Robbing_Hoody - condoning assaults on inanimat... (U6374)
posted 5 hours, 7 minutes ago
No I dont think that. I was just explaining why I thought some players on my list would be a good fit for certain teams in my opinion. Because it's an opinion piece there's not really a system or anything really and it is indeed "made up".
Just a thread for a light hearted sports discussion forum.
----------------------------------------------------------------------
Fair enough then....I just find there are too many on here who write things without actually backing them up...on our board especially at times...hence the question
If it's just an opinion...I'm fine with it
the 888 million debt is operating debt ofcourse
most football clubs run on an operating debt as they loan money from banks
how does that debt compare with their revenues and assets ?
comparing loan repayments to revenues and assets is the true way to gauge the financial health of a club
Sign in if you want to comment
Barca Fire Sale?
Page 4 of 4
posted on 16/7/19
comment by rosso is facking happy (U17054)
posted 13 hours, 8 minutes ago
comment by Jenius99 (U4918)
posted 3 hours, 11 minutes ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 6 hours, 52 minutes ago
comment by Jenius99 (U4918)
posted 17 seconds ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 2 minutes ago
comment by Jenius99 (U4918)
posted 56 seconds ago
One problem with such a debt is that the clubs mostly over value their assets. So its amazingly difficult to buy from them. They never reduce their price to sell because that actually 'realizes' their value as a loss on the balance sheet.
----------------------------------------------------------------------
Malcom and Rakitic apparently going reasonably 'cheap' though. Think Malcom would be a good signing for Arsenal.
----------------------------------------------------------------------
You really don't know how much they are asking for those players.
----------------------------------------------------------------------
I should have written "reportedly" instead of "apparently" maybe but what with this being a sports debating site I thought it would be okay.
----------------------------------------------------------------------
No its fair enough but let me explain.
Players are treated as assets. Those assets have a value usually what the club paid for them. They are then depreciated or revalued depending on age, performance etc.
Now if Barca spent £60m on Malcom and they sell him for less Barca make a loss on the player on the balance sheet. That means the club is worth less by the amount they lost on the player. That means the interest rates on that goes up. So Barca cannot sell players for less than they bought them. Now obviously someone like Rakitic has depreciated on the balance sheet so any thing they get for him is a profit. However again that doesn't mean they will sell for a discount. They will try to get the max they can get for him precisely because they want to pay the debt.
So the idea that if a club is in heavy debt they have to sell players cheap is actually the opposite of what happens. Usually clubs that are doing well but don't want the player's salary clogging up FFP tend to sell players cheaply.
----------------------------------------------------------------------
You're not quite right there.
Barca signed Malcom for EUR41m on a five year contract. That contract will amortise linearly over five years as far as FFP is concerned, so his value for the purposes of the discussion is now around EUR33m.
If they were to keep him for the next twelve months, they'd lose another EUR8m or so in the amortisation of his contract, as well as his wages.
If he's on EUR50k per week (I've got no idea what the actual figure is, this is just for argument's sake), they'd be shelling out EUR2.5m in wages, bringing the total cost of keeping him to EUR10.5m as far as the accountants are concerned.
However, if they didn't bring a replacement in (again, just for argument's sake), selling him now for EUR23m would actually leave them better off in the eyes of the FFP rules in twelve months' time.
----------------------------------------------------------------------
I wasn't being exact just trying to make the point that a fire sale is not what a club does when it is in debt. The point is Barca are not worried about ffp. They are more concerned about rising interest rates and their asset values. Though I am sure the ECB are obsessed with negative rates.
posted on 16/7/19
comment by Jenius99 (U4918)
posted 15 minutes ago
comment by rosso is facking happy(U17054)
posted 13 hours, 8 minutes ago
comment by Jenius99 (U4918)
posted 3 hours, 11 minutes ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 6 hours, 52 minutes ago
comment by Jenius99 (U4918)
posted 17 seconds ago
comment by Robbing_Hoody - condoning assaults on inanimate objects since 2017 (U6374)
posted 2 minutes ago
comment by Jenius99 (U4918)
posted 56 seconds ago
One problem with such a debt is that the clubs mostly over value their assets. So its amazingly difficult to buy from them. They never reduce their price to sell because that actually 'realizes' their value as a loss on the balance sheet.
----------------------------------------------------------------------
Malcom and Rakitic apparently going reasonably 'cheap' though. Think Malcom would be a good signing for Arsenal.
----------------------------------------------------------------------
You really don't know how much they are asking for those players.
----------------------------------------------------------------------
I should have written "reportedly" instead of "apparently" maybe but what with this being a sports debating site I thought it would be okay.
----------------------------------------------------------------------
No its fair enough but let me explain.
Players are treated as assets. Those assets have a value usually what the club paid for them. They are then depreciated or revalued depending on age, performance etc.
Now if Barca spent £60m on Malcom and they sell him for less Barca make a loss on the player on the balance sheet. That means the club is worth less by the amount they lost on the player. That means the interest rates on that goes up. So Barca cannot sell players for less than they bought them. Now obviously someone like Rakitic has depreciated on the balance sheet so any thing they get for him is a profit. However again that doesn't mean they will sell for a discount. They will try to get the max they can get for him precisely because they want to pay the debt.
So the idea that if a club is in heavy debt they have to sell players cheap is actually the opposite of what happens. Usually clubs that are doing well but don't want the player's salary clogging up FFP tend to sell players cheaply.
----------------------------------------------------------------------
You're not quite right there.
Barca signed Malcom for EUR41m on a five year contract. That contract will amortise linearly over five years as far as FFP is concerned, so his value for the purposes of the discussion is now around EUR33m.
If they were to keep him for the next twelve months, they'd lose another EUR8m or so in the amortisation of his contract, as well as his wages.
If he's on EUR50k per week (I've got no idea what the actual figure is, this is just for argument's sake), they'd be shelling out EUR2.5m in wages, bringing the total cost of keeping him to EUR10.5m as far as the accountants are concerned.
However, if they didn't bring a replacement in (again, just for argument's sake), selling him now for EUR23m would actually leave them better off in the eyes of the FFP rules in twelve months' time.
----------------------------------------------------------------------
I wasn't being exact just trying to make the point that a fire sale is not what a club does when it is in debt. The point is Barca are not worried about ffp. They are more concerned about rising interest rates and their asset values. Though I am sure the ECB are obsessed with negative rates.
----------------------------------------------------------------------
Fair enough
posted on 16/7/19
comment by Michael Edwards FC {Proud owner of the 5 000 000th comment} (U2720)
posted 5 hours, 5 minutes ago
comment by Busby (U19985)
posted 10 hours, 49 minutes ago
If he weren't such a cant, Suarez would be exactly what we need right now. A winner, a goalscorer, experience and a leader.
----------------------------------------------------------------------
You guys hired Moyes & Mourinho...
----------------------------------------------------------------------
Think there's just too much bad blood. Don't think the fans would take to him and he needs to feel loved.
posted on 16/7/19
comment by Robbing_Hoody - condoning assaults on inanimat... (U6374)
posted 5 hours, 7 minutes ago
No I dont think that. I was just explaining why I thought some players on my list would be a good fit for certain teams in my opinion. Because it's an opinion piece there's not really a system or anything really and it is indeed "made up".
Just a thread for a light hearted sports discussion forum.
----------------------------------------------------------------------
Fair enough then....I just find there are too many on here who write things without actually backing them up...on our board especially at times...hence the question
If it's just an opinion...I'm fine with it
posted on 22/7/19
the 888 million debt is operating debt ofcourse
most football clubs run on an operating debt as they loan money from banks
how does that debt compare with their revenues and assets ?
comparing loan repayments to revenues and assets is the true way to gauge the financial health of a club
Page 4 of 4