Johan07
Full Member
- Joined
- Sep 19, 2017
- Messages
- 1,936
On this I basically agree. Gross spend is relevant. But you are still writing like its a cost to invest in players. It only is if its older players looking at their last contract.Haha, why are you talking to me like I don't understand the basics of football finance? I understand the financials perfectly well.
Yes, from a cashflow perspective, transfer spend takes place over period of time, and/or based on contractual milestones. And yes, from a P&L perspective player registration fees are typically amortised over the length of the contract.
The club has no issue with cashflow - as you say we have a good amount of cash on hand, and debt and contractual calls on capital are manageable.
The restriction on transfer spend will come from a P&L perspective, as any spend in excess of our average annual transfer spend necessarily reduces the amount available in future windows (unless the club is prepared to have a financial year or two where it posts significantly decreased profits).
The club could decide to spend £300m this summer, but that would effectively be using up 3 years of committed transfer spend in one window. I think that's unlikely.
We have not spent that much gross the last couple of years and if we presume that Matic or even Pogba goes; there goes a major part of the old "amortization".
We should be in a similar position as Real Madrid was this summer, and should be able to act like that. I will be disappointed if we dont. To be clear.