Transfer Tweets - 2021/22 | Check the OP for blacklisted sources before posting

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Ayoba said:
Does amortization mean paying something back in instalments? I've googled it but my simple mind struggles to comprehend what exactly amortization is :(
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Its just spreading out the payments to the selling club. Like you would buy a car or a sofa. It can get abot complicated, for example Inter are still paying us for Lukaku but hes a chelsea player now.

No clubs pay the full amount up front, the only time that ever happens is if you need to pay a release clause fee i.e. us buying herrera from bilbao or next summer someone buyig haaland.
 
dinostar77 said:
Its just spreading out the payments to the selling club. Like you would buy a car or a sofa. It can get abot complicated, for example Inter are still paying us for Lukaku but hes a chelsea player now.

No clubs pay the full amount up front, the only time that ever happens is if you need to pay a release clause fee i.e. us buying herrera from bilbao or next summer someone buyig haaland.
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That isn't amortisation, that's just payment terms. Amortisation is how they write the asset (players contract) off in the accounts. It'll always be spread over the length of the players contract and has nothing to do with how it's paid.
 
Ayoba said:
Does amortization mean paying something back in instalments? I've googled it but my simple mind struggles to comprehend what exactly amortization is :(
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Amortization is an accounting practice that equally distributes the full value of an asset throughout its life cycle. It does not represent how that asset is being paid for. Take Harry Maguire's transfer as an example. United would have paid all of the ~80 million Pounds to Leicester City up front, but in the accounts, you won't see an 80-million-Pound expense; rather, you'll see a 16-million-Pound expense in his 1st year, a 16-million-Pound expense in his 2nd year, etc. If we trigger the option of an additional year, then you'll see an 8-million-Pound expense in his final 2 years.
 
Dwazza Gunnar Solskjær said:
Business as usual, then. How often does the buying club pay the full fee up front?

Also, have pity on that poor, confused, stammering Klopp.
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If I remember correctly Leicester demanded all the payment up front for Maguire. Same for Sporting with Bruno. That was apparently what took so long and was a sticking point and United ended up paying it.
 


Source: TNT Sports and Globo Esporte

TNT Sports states that Andreas Pereira has accepted a move to Flamengo. Globo Esporte state that United are sending "positive signals" to Flamengo, which is spurring on discussions. The teams are currently negotiating how the salary will be split along with the purchase option fee. Globo Esporte also states that both sides are optimistic about the deal being done.
 
Ole's screen said:
If I remember correctly Leicester demanded all the payment up front for Maguire. Same for Sporting with Bruno. That was apparently what took so long and was a sticking point and United ended up paying it.
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I haven't claimed it never happens, just inferred that it's not the norm. Most deals are done in instalments. If every deal was all cash up front players would hardly ever move. Clubs that need cash or don't want to sell a player might ask for all or a large portion of the fee up front but most clubs will appreciate some guaranteed income for a few years just as much.
 
Dwazza Gunnar Solskjær said:
I haven't claimed it never happens, just inferred that it's not the norm. Most deals are done in instalments. If every deal was all cash up front players would hardly ever move. Clubs that need cash or don't want to sell a player might ask for all or a large portion of the fee up front but most clubs will appreciate some guaranteed income for a few years just as much.
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But are they? I had read that United under Woodward were the ones usually wanting to do installments as a buying club and that other clubs usually didn't like dealing with Woodward and co because of that. While I think amortization was there, payments usually happened upfront. I think we got all the Ronaldo money up front, same with Spurs with Bale.

Maybe the pandemic has forced clubs like Dortmund and Real Madrid to accept installments because as you said it gives them guaranteed income for a few years.
 
Ayoba said:
Does amortization mean paying something back in instalments? I've googled it but my simple mind struggles to comprehend what exactly amortization is :(
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It's not payments in instalments. It's how you register it in your books. They calculate the package based on the length of the contract. They don't look at is as a lump sum.

From my understanding, if you sign Player X for 100 million, and you pay him 20 million per year, on a 5 year contract, that's a total outlay of 200 million over 5 years. They calculate it as 40 million per year.
 
mazhar13 said:
Amortization is an accounting practice that equally distributes the full value of an asset throughout its life cycle. It does not represent how that asset is being paid for. Take Harry Maguire's transfer as an example. United would have paid all of the ~80 million Pounds to Leicester City up front, but in the accounts, you won't see an 80-million-Pound expense; rather, you'll see a 16-million-Pound expense in his 1st year, a 16-million-Pound expense in his 2nd year, etc. If we trigger the option of an additional year, then you'll see an 8-million-Pound expense in his final 2 years.
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Ah ok. So what's the benefit of doing that? If as you say in this example United paid Leicester the full 80 million upfront, why list it in the accounts as installments?
 
Red Company said:
So did Ronaldo just throw his own friend under the bus? :lol:
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I heard/read some commentary somewhere today (I forgot where and can't find it at this time) that it was Jorge Mendes who passed the message onto Edu Aguirre, not Ronaldo himself. That may be why Ronaldo has finally come out to quieten the rumours.
 
Ayoba said:
Ah ok. So what's the benefit of doing that? If as you say in this example United paid Leicester the full 80 million upfront, why list it in the accounts as installments?
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The primary motivation is to reduce taxes. By splitting the expense over the asset's lifetime, the expenses reduce the taxable income over that period. If they didn't do that, they'd not only have to report a reduced profit over the first year but also pay more in taxes over the rest of the asset's lifetime.
 
We should have sold Pereira a long time ago. Shame it never worked out for him, he has the ability but lacks the football intelligence or mental strength needed at this level.
 
I actually think he lacks the ability at the highest level. His mentally though seems fine. Constantly shows the right desire.
 
Champ said:
Does this mean Trippier is back on? Or Dalot is staying, as it would leave us light on full back cover.
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I think that could go to the wire to get the cheapest deal. Dalot will probably go back to Italy or Spain or ......feck, I don't know
 
Blood Mage said:
We should have sold Pereira a long time ago. Shame it never worked out for him, he has the ability but lacks the football intelligence or mental strength needed at this level.
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Selling him means we need a buyer first. Scoring a banger here and there once in a blue moon doesn't get you suitors. Maybe we're being greedy and want too much
 
An option they obviously won't take. We'll be seeing Andreas again next pre-season.
 


Ornstein reporting what Marca reported a while back i.e. Odegaard training with a separate group.
 
mazhar13 said:
I heard/read some commentary somewhere today (I forgot where and can't find it at this time) that it was Jorge Mendes who passed the message onto Edu Aguirre, not Ronaldo himself. That may be why Ronaldo has finally come out to quieten the rumours.
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But even Jorge is his agent if I recall correctly? So they basically went behind his back to mention these rumours and clearly Ronnie isn’t happy about it.

Nevertheless I just find the whole idea of building anticipation to make an announcement and then reaching such an anti-climax, quite hilarious! :lol:
 
Ole's screen said:
But are they? I had read that United under Woodward were the ones usually wanting to do installments as a buying club and that other clubs usually didn't like dealing with Woodward and co because of that. While I think amortization was there, payments usually happened upfront. I think we got all the Ronaldo money up front, same with Spurs with Bale.

Maybe the pandemic has forced clubs like Dortmund and Real Madrid to accept installments because as you said it gives them guaranteed income for a few years.
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I'd argue that C. Ronaldo and Bale were examples of sales that the clubs didn't want to happen so they ask for more up front. Inter are still paying us for Lukaku, despite him not being their player anymore. Anything to help a deal along.

This article claims most are done in instalments of varying degrees: https://www.gq-magazine.co.uk/artic...-behind-the-scenes-of-a-big-football-transfer
 


Inter already inquired Raiola about Thuram when they were working on the Dumfries transfer.
 
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