bluenova said:
Prestwich_Blue said:
For a family as financially illiterate as yours it would be a (very lucrative) pleasure. ;-)
We paid £18m (€22m) on a 5 year contract for him 2.5 years ago. We amortise (write off to the P&L account) 18/5 (£3.6m) every year meaning we've written off £9m to date. This makes his net book value £9m. We calculate the profit on the sale price less net book value so if we get €24m (£20.5m) the profit we show, regardless of how Milan finance it, is £11.5m.
Don't like to be cheeky to a fellow Prestwich blue, but does it really make it a better deal because of the "accounting profits"? We still spent that money, even if it's been written off.
Given the up/down career he has had so far, getting more money than we paid for him is probably a good deal - but if you're paying £18m for a teenager then you're hoping he's going to be worth a lot more than that when you sell him. We could sell him for £10m and still make an 'accounting profit' - but it would be a travesty for a player who was one of the stars of the Euros last summer.
It's a fair question but the cash in or out is largely irrelevant and to get back what we paid for someone who really hasn't delivered on his promise is not bad. Plus there's a business decision to be made on a number of counts.
1) From a paying point of view we know what he CAN do but are we ever going to see him do it consistently?
2) Will he appreciate in value significantly? You could take a chance pre-Bosman but can't anymore. It's a bit like Deal Or No Deal but now the odds are in the player's favour.
3) We'd be looking at offering him a new contract or getting rid this summer as his value will start going down unless he delivers on the field (See 1)
4) FFP. We might need that profit to meet it.
5) We almost certainly need to sell before we buy. If we've got someone more reliable lined up it makes sense
