chesterbells
Well-Known Member
- Joined
- 15 Apr 2010
- Messages
- 23,257
Thanks for the full reply mate. I had no idea that release clauses needed paying in one lump sum. The way you put it, it kinda makes sense.You have to pay a release clause in one big go usually. Obviously it's better for accounting reasons to be able to spread that payment over years.
So I believe (based on intuition) that City are courteously bidding above the clause so that they can pay over multiple years, and also pay with bonus clauses at a later date. Villa are open to discussion because they know if they don't accept this offer we'll just undercut them and pay the clause. At least this way they get more money.
I have limited knowledge of how this accounting works and I haven't taken amortisation into account, so I could be completely wrong with my reasoning. But until I'm corrected I think I might be right. I have no reason to doubt that there is a release clause considering that there's been enough legitimate noise that there is one.