How this summer's transfers have actually cost us nothing

Prestwich_Blue

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No this isn't one of those stupid rag type calculations where they work out shirt sales and all that crap.

Been running a few figures following on from a comment in the Balance Sheet thread but think this is important enough to warrant its own thread.

There's been much wailing and gnashing of teeth over our spending this summer naturally but no one has looked at the bigger picture.

We've so far brought in 6 players (including Luiz) who've cost us around £215m. Over the next 5 years they'll probably cost us around £100m in wages, meaning the 5 year cost will be £315m.

But we've also lost or will be losing loads of players off the wage bill and have got/will be getting fees for some of them where they're still under contract. I reckon we'll have reduced the wage bill by something like £45m a year, which is £225m over the same 5 year period.

The fees for these players (plus Mooy, Zuculini, Unal etc) should easily exceed £100m, meaning that our overall gain over 5 years is at least £325m from cash in and wage savings. So over a 5 year period these players have had no net impact in cash terms.
 
Unless the player is home grown or come to us on a free, we tend to sell at the amount still left on the books. For the likes of Mangala, Nasri and Fernando there will still be a book value that will offset any sale fee received.
But still get your point.
 
No this isn't one of those stupid rag type calculations where they work out shirt sales and all that crap.

Been running a few figures following on from a comment in the Balance Sheet thread but think this is important enough to warrant its own thread.

There's been much wailing and gnashing of teeth over our spending this summer naturally but no one has looked at the bigger picture.

We've so far brought in 6 players (including Luiz) who've cost us around £215m. Over the next 5 years they'll probably cost us around £100m in wages, meaning the 5 year cost will be £315m.

But we've also lost or will be losing loads of players off the wage bill and have got/will be getting fees for some of them where they're still under contract. I reckon we'll have reduced the wage bill by something like £45m a year, which is £225m over the same 5 year period.

The fees for these players (plus Mooy, Zuculini, Unal etc) should easily exceed £100m, meaning that our overall gain over 5 years is at least £325m from cash in and wage savings. So over a 5 year period these players have had no net impact in cash terms.
So essentially we haven't even started spending the money from the improved TV deal(s). I hate to ask you this, because I know you have explained it before, but I am sure you have it on top of your head. When does this or these new TV deals kick in, and how much extra revenue is expected for City?
 
So essentially we haven't even started spending the money from the improved TV deal(s). I hate to ask you this, because I know you have explained it before, but I am sure you have it on top of your head. When does this or these new TV deals kick in, and how much extra revenue is expected for City?
Don't ask him complicated questions, he couldn't even catch a tram on Saturday ;-)
 
As far as I am concerned we are ahead of the game. Prices are going to be rocketing and we have just spent on players that are going to be around for the next generation. Whilst other teams are spending lke we are we will be settled.
 
So essentially we haven't even started spending the money from the improved TV deal(s). I hate to ask you this, because I know you have explained it before, but I am sure you have it on top of your head. When does this or these new TV deals kick in, and how much extra revenue is expected for City?
It kicked in last season and is worth roughly an additional £50m per season for last, this and next season.
 
If the proposition is that everything is spread over five years, last thing we need is Pep buggering off somewhere and the new manager whoever it may be wanting new players. I am assuming Pep agreed to extend his contract before we embarked on this summer buys even though we might not have announced it.
 

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