decmancity
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Douglas Luiz
- Thread starter mcfc482
- Start date
So a value is put on the 2 players coming to Villa and Villa have a value on Luiz?same as normal on paper, its still two transfers in the books.
Who decides in these values
Alan Harper's Tash
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Juve are masters at this. We ended up paying £60m for Cancelo as Danilo was valued at £35m.So a value is put on the 2 players coming to Villa and Villa have a value on Luiz?
Who decides in these values
This transfer seems one to balance the books of both clubs. They’ll have mutually come to valuations.
Someone correct me if I’m wrong here as I’m not 100% certain, but I think the main obstacle of negotiation will be how much cash should be involved on top of the 2 players. If they’ve agreed Luiz in exchange for McKennie, Iling and €20m, it will probably be done as 3 seperate deals. For example Juve paying €60m for Douglas Luiz, while Villa sign Iling and McKennie for €25m and €15m respectively. If that’s the case we would recieve 20% on profit they’ve made on him (which would be roughly 20% of 60-17=€43m which would equal €8.6m).How does our sell on fee work in a case like this this?
Even if the deal was done as an actual swap deal (which I think is very uncommon in football), there would have to be some sort of fair market value applied to McKennie and Iling Jr. as there’s no way Villa should only pay us back only 20% on the cash involved on top of the players. I think any swap deal would be very unlikely as it would be pretty much impossible to quantify the value of McKennie and Iling. Basically City could probably take them to court and argue they should pay 20% on the value of the total deal, not just the additional cash involved
Douglas Luiz book value should be roughly £6.5 this summer (4/7 years amortisized). To comply with FFP/profitability rules it could be in Villas best interest to sell him for e.g. €70m instead of €60m (and pay €50m for McKennie and Iling), even if that means an additional €2m to be paid to us.
Juve and Barca did something similar with the Pjanic-Arthur swap. They agreed on a €12m difference in valuation, but they were done as seperate deals. €60m for Pjanic and €72m for Arthur, which seemed abnormally high for players of their quality. Both players book value would be significantly below those fees, which allows them to comply with profitability/FFP rules
Edit: also forgot about the Danilo-Cancelo swap. There’s no way any of them would be worth £33m and £60m respectively
So a value is put on the 2 players coming to Villa and Villa have a value on Luiz?
Who decides in these values
Both clubs decide, whatever way it suits them.
Alan Harper's Tash
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It does make sense for them to have overpriced their assets to help their bottom line, even if at €70m, Villa would have to pay us €11m for the 20%.Someone correct me if I’m wrong here as I’m not 100% certain, but I think the main obstacle of negotiation will be how much cash should be involved on top of the 2 players. If they’ve agreed Luiz in exchange for McKennie, Iling and €20m, it will probably be done as 3 seperate deals. For example Juve paying €60m for Douglas Luiz, while Villa sign Iling and McKennie for €25m and €15m respectively. If that’s the case we would recieve 20% on profit they’ve made on him (which would be roughly 20% of 60-17=€43m which would equal €8.6m).
Even if the deal was done as an actual swap deal (which I think is very uncommon in football), there would have to be some sort of fair market value applied to McKennie and Iling Jr. as there’s no way Villa should only pay us back only 20% on the cash involved on top of the players. I think any swap deal would be very unlikely as it would be pretty much impossible to quantify the value of McKennie and Iling. Basically City could probably take them to court and argue they should pay 20% on the value of the total deal, not just the additional cash involved
Douglas Luiz book value should be roughly £6.5 this summer (4/7 years amortisized). To comply with FFP/profitability rules it could be in Villas best interest to sell him for e.g. €70m instead of €60m (and pay €50m for McKennie and Iling), even if that means an additional €2m to be paid to us.
Juve and Barca did something similar with the Pjanic-Arthur swap. They agreed on a €12m difference in valuation, but they were done as seperate deals. €60m for Pjanic and €72m for Arthur, which seemed abnormally high for players of their quality. Both players book value would be significantly below those fees, which allows them to comply with profitability/FFP rules
Edit: also forgot about the Danilo-Cancelo swap. There’s no way any of them would be worth £33m and £60m respectively
Someone correct me if I’m wrong here as I’m not 100% certain, but I think the main obstacle of negotiation will be how much cash should be involved on top of the 2 players. If they’ve agreed Luiz in exchange for McKennie, Iling and €20m, it will probably be done as 3 seperate deals. For example Juve paying €60m for Douglas Luiz, while Villa sign Iling and McKennie for €25m and €15m respectively. If that’s the case we would recieve 20% on profit they’ve made on him (which would be roughly 20% of 60-17=€43m which would equal €8.6m).
Even if the deal was done as an actual swap deal (which I think is very uncommon in football), there would have to be some sort of fair market value applied to McKennie and Iling Jr. as there’s no way Villa should only pay us back only 20% on the cash involved on top of the players. I think any swap deal would be very unlikely as it would be pretty much impossible to quantify the value of McKennie and Iling. Basically City could probably take them to court and argue they should pay 20% on the value of the total deal, not just the additional cash involved
Douglas Luiz book value should be roughly £6.5 this summer (4/7 years amortisized). To comply with FFP/profitability rules it could be in Villas best interest to sell him for e.g. €70m instead of €60m (and pay €50m for McKennie and Iling), even if that means an additional €2m to be paid to us.
Juve and Barca did something similar with the Pjanic-Arthur swap. They agreed on a €12m difference in valuation, but they were done as seperate deals. €60m for Pjanic and €72m for Arthur, which seemed abnormally high for players of their quality. Both players book value would be significantly below those fees, which allows them to comply with profitability/FFP rules
Edit: also forgot about the Danilo-Cancelo swap. There’s no way any of them would be worth £33m and £60m respectively
That's how they are valued though. Re danilo/cancelo, the only money chaning hands is 30m. Juve can claim that as 60m in, 30m out. Or they can claim it as 30m in, 0 out. Whatever suits their books that year.
So can we, we can say we paid 31m for Cancelo, if we accept Danilo is only 1m to us. Or we can say we banked 33m For Danilo but then spent 57m on Cancelo. It really is open to both to put through the books.
Re Luiz, I understand we would get 20% of whatever the book value is. If that book value is 20m plus 1m plus on one palyer and 1m on another, we will get our share of that, I assume. If they put it down as 60m for the player but then 20m spent on wach player then, a percentage of that.
Juventus did this wit Barcelona for pjanic and arthur. As someone else said, masters at it.
Gaz (FMwkdsoul)
Well-Known Member
*cancels new shirt*Luiz to city died a quick death!
Cash flows and income statements are two different things, even if it was as straight forward that only £27m (the difference) changes hands (which might not be the case due to payment structures etc.) the deals went down as £33m and £60m deals in the booksThat's how they are valued though. Re danilo/cancelo, the only money chaning hands is 30m. Juve can claim that as 60m in, 30m out. Or they can claim it as 30m in, 0 out. Whatever suits their books that year.
So can we, we can say we paid 31m for Cancelo, if we accept Danilo is only 1m to us. Or we can say we banked 33. For Danilo but then spent 57m on Cancelo. It really is open to both to put through the books.
Danilo’s book value when we sold him was £15.9m, which means that Danilo was sold for a £17.1m booking profit