Welcome Joao Cancelo

[ChicagoBlue]

Simon Rag Stone still writes it up as a City Sign Cancelo for £60m when it really cost us £26m!

He is stating fact. The transfer fee for Cancelo wasn’t what you state. What you are stating is the relative EFFECT of the two deals.

Let’s not become Rags and stay in the realm of reality. Cancelo is a £60M player we just bought from Juve. Danilo is a player we just sold to Juve for £34M. Good deal for both teams, and their CFOs like the way the deal has been structured for their own purposes.

 

[Stoned Rose]

No.

If you do the Danilo math, then you have to count Cancelo at £60M!

Explain mate?

 

[lasereyes]

The fees are all to help out Juventus.

The needed to raise money on their books this year, and because of the amortisation, selling Cancelo for €65m and buying Danilo for €37 nets them a €24m profit this year.

If we'd given them Danilo for 0 and paid €28m for Cancelo then they'd have made a €4m loss this year despite the net amount of cash and the players being identical.

RIght so the "official" figures are just fake. Basically Danillo was sold for GBP19-24m pre my previous post.

 

[SebastianBlue]

No.

If you do the Danilo math, then you have to count Cancelo at £60M!

What you are saying makes sense, but only if the Cancelo and Danilo deals where not related, which they were. One does not happen without the other.

Meaning it is perfectly fair and proper to account for them on a net basis (a combined transaction).

 

[ChicagoBlue]

What you are saying makes sense, but only if the Cancelo and Danilo deals where not related, which they were. One does not happen without the other.

Meaning it is perfectly fair and proper to account for them on a net basis (a combined transaction).

Still no. Sorry. You didn’t study maths at Uni, did you?! ;-)

 

[City Rich]

What you are saying makes sense, but only if the Cancelo and Danilo deals where not related, which they were. One does not happen without the other.

Meaning it is perfectly fair and proper to account for them on a net basis (a combined transaction).

You treat them separately:

Going back to previous quote:

Taking Danilo’s book value into account

(27m amortised over 2 years of a 5 year contract).

His book value was about £17m.

We’ve sold him for 34 so made about 17m on him.

Cancelo’s fee is 60m so that’s 12m a year amortisation.

This means this year we’ll make a net 5m in our p&l 17m profit on the sale of Danilo less the 12m amortisation on Cancelo.

For years 2-5 of cancelo’s contract we’ll see a 12m hit to our p&l.

 

[Cozmo Bozo]

Still no. Sorry. You didn’t study maths at Uni, did you?! ;-)

Uni?!? More like elementary school.

If you account a €37m profit against the sale of Danilo, then the acquisition of Cancelo is a €65m expense, as outlined in the public statement by Juventus. Only the difference is €28m, not the fee for Cancelo.

Our accountants might be good, but they're not magicians.

 

[WallyA]

If we play 3 atb and Walker plays RCB and Cancelo as RWB, then I think that kind of suits the 2 academy fullbacks.

Alpha I think is a more defensive fullback (can cover Walker in cups and such) and Frimpong is an ultra attacking fullback (can cover Cancelo).

 

[ChicagoBlue]

Uni?!? More like elementary school.

If you account a €37m profit against the sale of Danilo, then the acquisition of Cancelo is a €65m expense, as outlined in the public statement by Juventus. Only the difference is €28m, not the fee for Cancelo.

Our accountants might be good, but they're not magicians.

Juventus
Revenues £60M (Sale of Cancelo)
Expenses £37M (Purchase of Danilo)

City
Revenues £37M (Sale of Danilo)
Expenses £60M (Purchase of Cancelo)

Q1) How much did Cancelo cost City?

Q2) What was the net cost of the two transactions to City?

Q3) Which team is ruining football?

I’m answering Q1, you are focused on Q2, and the fans (and certain executives) of the other teams in Europe are focused on Q3!!!

 

[Alan Harper's Tash]

Explain mate?

We've done a player exchange plus cash. Juventus have submitted how it was broken down to their shareholders.

The fee is "inflated" to help them with their FFP issues.

Ultimately, we've spent £26m plus Danilo on Cancelo. Danilo's worth has been "inflated" for Juve to put it on their books as €65m.

It doesn't matter to City how much Danilo was worth. We spent £26m and offset a player we didn't have room in our squad for, to buy Cancelo.