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Joao to Reading is close according to Dom


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Just now, agentwalker said:

 

I think that's the main worry for people. We ain't got a good track record for this.

 

Knowing our luck we'll spaff it all away on the next Boyd and Jones.

You're right we haven't but I think Chansiri surely will have seen what the likes of Brentford and Bristol City are doing and will want a piece of the pie. 

The scouts need to earn their money big time and find us some gems! Not necessarily before Thursday either. 

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53 minutes ago, jonesy87shef said:

Just reading comments on here and twitter about Joao and how Chansiri playing a blinder. It’s not a bad fee, but feels like peanuts when you look at what bang average defenders are going for.

 

Feels like another Antonio situation to me. Some think it’s fantastic money for what we are selling. I think it’s oretty crap. Can’t replace with better anymore for the money reported. Could argue as a current bench warmer it doesn’t really matter. I won’t be happy if it goes through. 

 

and strikers such as madine which was a tea spitter for me 

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Be happy for just a small return, he ain't got what it takes...

Reading being the only club willing to take a chance seems conclusive proof to me.

Wish him well though.

If we get £7m plus add ons....DC must have had his wee pipe Turpins mask on during negotiations.

lol

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We bought joao 4 years ago.... he turns 26 next month and hasnt done it for us in any season....or even in a 1/2 season. In his few months at blackburn he didnt do alot. IF we get around £5m for him its good money. IF reading get goals from him then well done to them. It just hasnt worked for him here.

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Hopefully we reinvest the money wisely on Hector and young talent. Looking at Brentford getting 20mil for Maupay makes me feel sick in comparison to our transfer fees recieved over the years. They got him as a 20 year old for pittance, it can be done just got to target players of the right age who can improve.

 

In fact we bought Joao at a similar age and here we are, profit. Time to do the same with many more players.

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37 minutes ago, swfc-dan said:

What is the fee?

 

Not happy about selling Joao either. At 25 it could easily click this year and hed be worth 5-10mil. Much better off holding and seeing if his value can skyrocket this year. Hes arguably our best goalscorer.

 

Would rather sell Fernando if we have to sell, due to age/potential.

 

With regular games I can easily see Joao banging in 20 and earning a big money move next summer. Think we'll really miss his goals off the bench if we sell him.

Reported/suggested to be £5million up to £7 million,so right between your £5-10 million suggestion.............................good call fella.

At 25 years of age and four years here,you/we would have hoped that there'd be something to substantiate your "it could easily click this year",coulda/woulda/shoulda seems to sum him up.

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5 minutes ago, swfc-dan said:

Hopefully we reinvest the money wisely on Hector and young talent. Looking at Brentford getting 20mil for Maupay makes me feel sick in comparison to our transfer fees recieved over the years. They got him as a 20 year old for pittance, it can be done just got to target players of the right age who can improve.

 

In fact we bought Joao at a similar age and here we are, profit. Time to do the same with many more players.

Would rather us sign players to do well for us. Was talking about walker maguire at the weekend. £130 m for the pair. What United would give to have them two in their team now. Finance isn’t such a massive issue ( or won’t be be if we can get to the prem). Let’s start buying players to provide a long term future for our club not for a big bank balance. 

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£5 - £7m is a decent fee for a player who granted is unplayable when he can be arsed which unfortunately is about 1 in 5 matches, the other 4 he sulks & looks disinterested.  More importantly he's reportedly asked to leave, we don't need anybody that doesn't want to be here.

 

Our squad is imbalanced with too many strikers & we've known all summer that we need to sell players so we can strengthen in weaker areas.

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We kind of have to sell if the fee is as decent as being reported.

 

We don't even need to replace him, we have several strikers perfectly good enough to score enough goals

 

We are however weak at left back, centre back, centre mid. Get these covered properly and selling Joao makes perfect sense - we'll have got a very tidy squad

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2 hours ago, HOOTIE AND THE poo TU said:

The fee is usually spread over the length of the contract

 

For instance, we bought Rhodes for 8 million, and gave him a 4 year contact

 

We pay Middlesborough 2 million per year

 

We still owe them 4 million, which becomes payable if we sell him

 

So letting him go for anything less than 4 million is madness

 

1 hour ago, pazowl55 said:

That's for the purposes of FFP only I believe though. We could have paid boro a number of different ways even all the money upfront. In which case we owe them nothing for him anymore.

But in terms of FFP it is translated exactly as it is you have put it.

 

It's more for the purposes of accounting, rather than specifically for FFP, although of course annual accounts are reviewed, regulated and monitored by FFP and Profitability & Sustainability.

 

It is my understanding that we have paid in full on Rhodes, so we do not owe Middlesbrough anything. However, each financail year, through amortization, we lose a quarter/25% (due to a 4 year contract) of his total purchase value. 3 year contracts would be a 33.3%, 5 year, 20% etc. So, unless I am mistaken, we didn't post a £8 or £10M "loss" against the purchase of Rhodes (I don't know what we paid), we posted a £2M/£2.5M loss at the end of his first year, and the same each year until his contract expires. This is possibly why FFP (and P&S) look at 3 year projections, due to amortization.

 

I'm not an Accountant (can't ya tell :biggrin:) so I might not have got this bang on, but I think it is somewhere close to how it works.

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1 minute ago, ChapSmurf said:

 

 

It's more for the purposes of accounting, rather than specifically for FFP, although of course annual accounts are reviewed, regulated and monitored by FFP and Profitability & Sustainability.

 

It is my understanding that we have paid in full on Rhodes, so we do not owe Middlesbrough anything. However, each financail year, through amortization, we lose a quarter/25% (due to a 4 year contract) of his total purchase value. 3 year contracts would be a 33.3%, 5 year, 20% etc. So, unless I am mistaken, we didn't post a £8 or £10M "loss" against the purchase of Rhodes (I don't know what we paid), we posted a £2M/£2.5M loss at the end of his first year, and the same each year until his contract expires. This is possibly why FFP (and P&S) look at 3 year projections, due to amortization.

 

I'm not an Accountant (can't ya tell :biggrin:) so I might not have got this bang on, but I think it is somewhere close to how it works.

And in regards to Joao all the money we recieve goes on the year of the sale doesn't it.

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I am not party to the details of any of these transactions, I’m getting old and it’s a long time since I taught accounting, but one or two observations on general accounting principles:

 

Why would any selling club would agree to be paid over the full length of the contract given to their departing player by the buying club? What does the length of the player’s new contact have to do with the seller’s business?

 

For example, by such a method, what would stop a buyer acquiring a £100 million player for £2 million upfront by offering him a fifty year contract? (Exaggeration for effect).

 

Also, money today is worth more than future money. By the time later installments came to be paid, inflation would steadily be reducing the real value received while the opportunity cost of lost interest would also be damaging the seller’s business.

 

Any business looks to its own profitability and its own cash flow first and only makes concessions to buyers (of products or used assets) if for some reason it can’t find buyers to pay the full amount it wants right away.

 

So, for profit and loss account purposes, the buying club amortises, or depreciates, its new asset over the anticipated life of the asset just like any other business, (except that under Bosman rules it would probably have to anticipate a resale value of zero at the end of his contract, whereas other types of assets may still have an estimated residual resale value when they reach the end of their expected useful life with the buyer).

 

However, for cash flow account purposes the full amount paid will be deducted from cash in hand in the year of payment by the buyer and credited to cash in that year by the seller.

 

In principle therefore, any purchased player with time left on his contract should still appear in the balance sheet as having a residual asset value (amounting to purchase price minus accumulated amortisation), will still appear in the profit and loss account under amortisation of assets, but will only appear in cash flow as outgoing wages. Asset depreciation does not appear in cash flow since it’s not a cash outgoing but an accounting convention.

 

Good grief, I haven't had to think like that for years. Please put any errors (or statements of the obvious) down to old age.

Edited by MoorfOwl
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9 hours ago, robswfc said:

FFS £5m is an absolute steal for them. Easily our best finisher and got so much potential. Terrible decision

You can't talk about potential anymore, he's 25 years old. 

If he hasn't gained the right mindset, attitude and consistency by now he almost certainly never will bud. 

When he signed he had the world at his feet and everything in his locker as a player. He's just simply not lived upto that promise, 8/9 games where he's on it over a 46 game championship season just isn't good enough. 

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4 minutes ago, shezzas left peg said:

You can't talk about potential anymore, he's 25 years old. 

If he hasn't gained the right mindset, attitude and consistency by now he almost certainly never will bud. 

When he signed he had the world at his feet and everything in his locker as a player. He's just simply not lived upto that promise, 8/9 games where he's on it over a 46 game championship season just isn't good enough. 

 

Bang on - he’ll likely be exactly the same at Reading 

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