Kelechi Iheanacho

[Proy]

This football club is not such a small time operation that we can't take an overall view of this deal.

If we buy him back we'll have paid 10m for them to develop him.

It's a net spend of 10 million. I'm not sure why some find it so difficult.

Doesn't matter when the 25 million goes on the books.

 

[ninjamonkey]

Benefits all parties, Leicester aren't spending £25m+ on someone they're not going to use, Kelechi gets major playing time in the PL, and City can get him back if he is a success, to keep, or sell on for more.

We got him for next to nothing, so are basically making a £25m profit on that, he will hopefully develop further with decent playing time, if he does, we can take him back when we need him.

Slimani says hi. Kelechi doesn't go in to Leicester as guaranteed first choice every game, he'll have to work to earn his spot. Can only be a good thing from our point of view though.

It makes no difference to profit when you get paid. Goalmole is correct.

That depends on the nature of the deal. If it's guaranteed it can all go in this years accounts, if however it's dependant on anything incentive based, be it goals scored, international caps, league position etc or even something as simple as a handful of appearances then it can't go in the books until it's triggered, as it's not guaranteed.

 

[lasereyes]

This is bizarre maths he will cost us £35M if we buy him back , we will already have banked the £25M . When a player is loaned it is usually the club taking them that pays a loan fee not the club that owns him.

It is not a loan deal. It is a sale with option to buy back. If Kelechi does not make it big, we will simply bank the $25m which would not be possible if the deal was a loan. As Finance students learn, you may money for options.

 

[The Doctor]

Telegraph saying £50m to buy back

 

[BlueAnorak]

Telegraph saying £50m to buy back

Probably true - but that would confirm that if we don't buy him back and Leicester sell him on then profits (above the base £25m) would be shared with Leicester if they sell him on.

 

[Josh_D]

He has to stay in this country 1 more year then he will get a British passport, go to Monaco he loses that option. So we buy back next season and sell him to Monaco for 100m

From the little knowledge I have about passports, it takes 5 years after working here to obtain an indefinite leave to remain. Meaning even with his Nigerian passport he can go and leave as he pleases without having to renew his work visa. It then takes another 5 years to be eligible to apply for a British passport. Essentially, 10 years to obtain one. In addition, there's also a threshold on the number of days within that 10 year period he can leave the country (holidays, etc). Unless the rules differ for footballers, that's how it works. However, if I'm wrong and someone has better knowledge I'm wiling to listen.

 

[Chappie]

I wish you would all stop worrying about his buy back clause.
He wont be coming back
He is not or will never be good enough for City

 

[Cityfan]

It is not a loan deal. It is a sale with option to buy back. If Kelechi does not make it big, we will simply bank the $25m which would not be possible if the deal was a loan. As Finance students learn, you may money for options.

Yes. I realise it's not a loan deal, my point of using the loan example was to highlight the absurdity of saying we would be buying him back for £10M.
In effect we are selling him for £25M and buying an option for the difference of £25M and how much we could have got for him without that option say another £3-5M.
The gain of that option is maximally the difference of £35/50M and what his cost would be on the open market and minimally it expires worthless.

 

[lloydy]

I wish you would all stop worrying about his buy back clause.
He wont be coming back
He is not or will never be good enough for City

Correct!

 

[01cravend]

I wish you would all stop worrying about his buy back clause.
He wont be coming back
He is not or will never be good enough for City

Ahh that must be why we put the buy-back clause in.

You should get hold of the club and tell them they're pissing In the wind with this one.