steve vena
Just doesn't shut up
- Joined
- Oct 18, 2011
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You are good mate....its double Dutch to me.This has scrambled my brain a little! Trying to work it all out.
I think it all comes down to any fee covering the remaining amortisation. I don't think it costs us less to loan him out, but there could be reasons why loaning him is beneficial for future book value.
£27.5m fee in summer 2022, on 5 year deal, £5.5m per season.
£22m book value in summer 2023 (£5.5m x remaining 4 years).
Cost to us per season of keeping him here is £5.5m amortised fee, plus £4,680,000 in salary (£90k per week) = £10,180,000 per season.
Cost to us of loaning him out with wages covered is £5.5m a season, a £4,680,000 saving. But for that year in isolation, the wage saving effectively covers most of the amortisation value to get close to a net position for that year he is loaned.
If people were only offering £15m for him in the summer, with £22m book value and 4 years of contract remaining, by selling him, you're locking in that £7m loss for future years.
But if we wait a year, someone else covers his wages and we can get £16.5m for him next summer, there's no loss on the books going forward?
Or failing that, we loan him again and hope someone pays £11m for him in the summer of 2025, or £5.5m for him in the summer of 2026?!
Sound about right?! I need a lie down.