muttley
Alert Team
It's a difficult concept but I can actually believe that Levy would sanction £50m spending this window under the right terms. It's all about how football finances work.
Firstly, look at football transfers like the Walker vs Sanchez summer trade-off. For both deals, you negotiate the up front fee and then the stage payments over 2 or 3 years. Walker is a massive profit as we bought him for nothing when we signed him and Naughton and we sold him for £45-50m 10 years later. We take that profit in the year he's sold. Sanchez was £42m that gets amortised over the life of his contract. Within a year, we then offered him a new and even longer contract and amortised over an even longer term on the balance sheet. All the time the Walker stage payments are paying for the Sanchez ones.
Then you take our more recent business. We've only actually bought Moura in the last 2 windows and previous stage payments on players bought 2-3 years ago are ending, covering this cost. So for Levy to sanction purchases in this window is relatively easy. As long as the player is young enough and we can amortise their value over a long contract then we're in good shape. We also predict increased revenues based on new stadium / NFL etc and know that we can cover any purchase we make now over 2-3 years of repayments. We've also got players like Dembele rolling off the wage bill and more will follow.
It's simply a case of whatever we do now will be offset by what we won't do in the summer. Therefore, if the right player becomes available now then I expect us to make a move. If not, we sit on our wallets. What you won't see us do is sell our soul for an old mercenary that doesn't fit the business model of buying young with a resale value i.e. that's why Sanchez type deals work.
I'm pretty certain we will see an incoming player this window. I have a feeling it will be an U23 though as that works into the financial model.
Firstly, look at football transfers like the Walker vs Sanchez summer trade-off. For both deals, you negotiate the up front fee and then the stage payments over 2 or 3 years. Walker is a massive profit as we bought him for nothing when we signed him and Naughton and we sold him for £45-50m 10 years later. We take that profit in the year he's sold. Sanchez was £42m that gets amortised over the life of his contract. Within a year, we then offered him a new and even longer contract and amortised over an even longer term on the balance sheet. All the time the Walker stage payments are paying for the Sanchez ones.
Then you take our more recent business. We've only actually bought Moura in the last 2 windows and previous stage payments on players bought 2-3 years ago are ending, covering this cost. So for Levy to sanction purchases in this window is relatively easy. As long as the player is young enough and we can amortise their value over a long contract then we're in good shape. We also predict increased revenues based on new stadium / NFL etc and know that we can cover any purchase we make now over 2-3 years of repayments. We've also got players like Dembele rolling off the wage bill and more will follow.
It's simply a case of whatever we do now will be offset by what we won't do in the summer. Therefore, if the right player becomes available now then I expect us to make a move. If not, we sit on our wallets. What you won't see us do is sell our soul for an old mercenary that doesn't fit the business model of buying young with a resale value i.e. that's why Sanchez type deals work.
I'm pretty certain we will see an incoming player this window. I have a feeling it will be an U23 though as that works into the financial model.