Prestwich_Blue
Well-Known Member
Re: Goodbye Mario?
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.
For a family as financially illiterate as yours it would be a (very lucrative) pleasure. ;-)lionheart said:Would you be our family accountant, please. Amazing arithmetic.Prestwich_Blue said:Cracking deal if true as we only paid €22m for him allegedly. That would be an £11/12m profit in the accounts.Marvin said:£20.5M is a good deal - if true
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.