Balance Sheet

So, if we buy Sanchez and a centre back we might end up touching £280-300m in purchases, which if amortized over 5 years, adds £55-60m pa to the P&l expenditure.

It appears that so far we've brought in £67m in fees, most of which (say £55m) represents profit on disposal. We might sell also sell Delph, Mangala, Bony and Nasri but will probably do no better than break even on those players, might make a loss.

The profit on disposal almost offsets the additional amortization costs in 2017/18 (but not in future years).

In 2017/18 we will no longer have amortization costs for players who have left this summer at the end of their contract. Not sure how much that's worth.

And then there is the increase/decrease in the wage bill, which given the large number of players who have left (and Yaya's pay cut!) the savings on wages for the leaving players should more than pay for the wages of the incoming players.

Overall the players ins/outs this sumer should have a favourable effect on the accounts for 2017/18.

Looking a year ahead though, we will still have the £60m (ish) amortization costs for this year's purchases (plus any new signings). At the moment we don't have any profit on disposals of players to offset that. So if the club wishes to maintain player expenses (wages + amortization) in 2018/19 at a similar level to 2017/18 then we need to sell a few more players at a profit.

Doesn't this highlight how important it is for the club to keep finding players such as Kelechi, Unal, Mooy to trade in order to fund acquisitions?
Agree and that IMO is the purpose of the academy. It will be an absolute bonus if a couple of players make it to the very top and join the first team. Sell ten kids at 5m apiece not rocket science is it.
 
Unal/Mooy/Kelechi are headline deals whereas the other sales are failed moves limiting or probably realising losses. I agree if Chelsea can turn big profits in the transfer market, then so can City, and with our overseas clubs, we are probably better placed than anyone to do it.
We've lost money on Nolito and will probably lose some if we sell Mangala but we could report a profit on sales of £60m this financial year. With a decent CL run we could easily report net profit around or even over £100m next June.
 
We've lost money on Nolito and will probably lose some if we sell Mangala but we could report a profit on sales of £60m this financial year. With a decent CL run we could easily report net profit around or even over £100m next June.
The masses of indignant fans of the cartel clubs (and Jürgen Klopp) will not be able to understand how this can be, so if we report such a profit for this year their calls of FFP foul play will increase, LOL.
 
So let me get this right:
Expenditure so far 207 million - amortised on average 5 year contract - = 42 million/year

Income so far this year 75 million

Balance sheet this year: +33 million
There will also have to be amortisation of Debruyne, Sterling, Stones, Mangala, Otamendi, Gundogan etc etc.
Not to mention the write down of Nolito, & possibly Bony, Mangala and Nasri (though he's probably not that much now having had his contract extended)
 

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