If we sell him for £30m we blew £50m. Especially considering his performances, never mind his wages. No amount of accounting wizardry can account otherwise.
Or did we just rob someone of 30m?
Seriously though, that post was just in relation to people referring to how the Glazer’s people would not sell Maguire because it would sink the club’s financial result exposing how big of a loss we made on him.
Its been talked about a lot, and Goldbridge raised a question regarding how this works the other day at United Stands. And financial results and the status of the balance sheet can affect a company even if it is just ‘on paper’ not impacting the cash flow. Loan agreements have covenants. If a business develops poorly, interest on existing loan facilities may raise and so forth. It affects how much you can pay in dividend to the shareholders. Not the least, the valuation of a company.
And it is true that if you buy something for 80m day 1 and sell it for 30m day 2, it affects our result with a minus -50m.
When we bought Maguire for 80m he was booked at 80m in our balance sheet as an intangible asset (a right to register him as our player). But since a player has a limited life span, that asset must be depreciated (or amortized, since it’s an intangible asset). United does this in a straight line over the contract’s term.
Hence, next summer Maguire will “only” be on our books with 28m. If we sell him for 10m, it will impact our results with -18m. Not -70m.
Ultimately, we can accuse the Glazers for being utterly incompetent and worthless owners — but I don’t think we keep players because if we sold them, it would hurt our balance sheet.
Newcastle bound or Everton?
Can't imagine Maguire in Spain or Italy.
Everton’s defense has been really strong this year and is Maguire even a starter for Newcastle?
The one team I would buy him for if I was in charge — in January, on top of everything — is Wolverhampton. They need character. A leader. Someone that will come in and take some heat of others.