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Net spend means nowt.
Correct. What should be assessed is the overall cost of ownership, which is amortisation plus player wages.Net spend means nowt.
I've argued this across many platformsCorrect. What should be assessed is the overall cost of ownership, which is amortisation plus player wages.
If you have 2 players, each on £150k a week, who both leave on a free transfer at the end of their contracts, you've saved £15m a year. If you then buy a player for £50m & pay him £100k a week, he'll cost you £15m a year.
The net spend wankers would say your net spend is £50m but it's actually zero.
Graphic from Swiss Ramble - see 2nd of the two graphics for transfer purchases. The first one gives current amortisation costs which reflects historic transfer spending cost.
OK. You say the amorisation costs plus wages detail the annual costs to the football business, but if you have two clubs who have the same amortisation costs but one club's buys are poor and it ends up releasing its players on free transfers, and another funds futures acquisitions by selling players at a profit, the amortisation costs would only reflect the costs and not capture the revenue.Correct. What should be assessed is the overall cost of ownership, which is amortisation plus player wages.
If you have 2 players, each on £150k a week, who both leave on a free transfer at the end of their contracts, you've saved £15m a year. If you then buy a player for £50m & pay him £100k a week, he'll cost you £15m a year.
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The net spend wankers would say your net spend is £50m but it's actually zero.
Good point. Maybe player receipts should be added into the equation in some way, either as gross receipts or profit /loss on transfer.OK. You say the amorisation costs plus wages detail the annual costs to the football business, but if you have two clubs who have the same amortisation costs but one club's buys are poor and it ends up releasing its players on free transfers, and another funds futures acquisitions by selling players at a profit, the amortisation costs would only reflect the costs and not capture the revenue.
The Liverpool fans would argue that City's owner funds the amortisation costs, or did, whereas player trading, and commercial opeartions funded their business.