So what you're saying is that even though we've agreed wages with Ugarte at £8M a year, now we've simply turned round to him and told him that actually he's only going to be paid £5M in the first year? And then at the end of that first year, we're now only offering him a four year contract instead of a five year contract? Im sorry but that's not a serious suggestion.
You have to know the points you're making aren't even counterarguments, right? It seems like you're arguing in bad faith here, so this'll be my last reply on the matter. Ridiculous to have to go round-and-round on what's fundamentally a quite simple point.
- I'm saying that £5M is his current wage and while he's on loan that's what he'll continue to be paid. Even if the loan fee were £8M though, that doesn't create extra costs, since that'd be his wage on a new deal
- I used a 4 year contract rather than a 5 year contract to keep the overall comparison like-for-like (5 years in each comparison). We probably will give him a 5 year deal at the end of the loan term, but that will take over overall time with him on the squad to 6 years. In that case, the average cost per year will actually drop, so I figured someone like you would then complain I was using an unfair comparison....
Since it appears this math requires some strong hand-holding, I'll do it again. This time we can do it your way and assume it's an £8M loan fee and a 5 year contract afterwards:
Loan with obligation to buy:
24/25 season: £8M loan fee. After the year we pay £50M transfer fee and Ugarte signs a 5 year contract thereafter for £8M wages a year
25/26 season: £8M wages: £10M fee amortization
26/27 season: £8M wages: £10M fee amortization
27/28 season: £8M wages: £10M fee amortization
28/29 season: £8M wages: £10M fee amortization
29/30 season: £8M wages: £10M fee amortization
Total cost: £98M; £16.33M per season
Immediate purchase for £50M transfer fee and Ugarte signs a 5 year contract thereafter for £8M wages a year:
24/25 season: £8M wages: £10M fee amortization
25/26 season: £8M wages: £10M fee amortization
26/27 season: £8M wages: £10M fee amortization
27/28 season: £8M wages: £10M fee amortization
28/29 season: £8M wages: £10M fee amortization
Total cost: £90M; £18M per season
As you can see, in this case it's cheaper per season to do the loan-with-obligation (£16.33M vs £18M per season). Yes, the total cost is higher for loan with obligation, but we get to retain him for an extra season.