debt doesn't go up if you pay with straight up cash in your bank account. If we had £150m in the bank and spent £120 on F and M, we'd still have £30m in the bank. Unless with "straight up cash" you mean one hell of a big overdraft in which case that would be classed as debt but that's not straight up cash, that's more like a loan
Jude Bellingham | Confirmed Borussia Dortmund player
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In the latest episode of the United Hour Podcast, Nik and Imran hold a long overdue conversation about United's awful league form with 1 win in 7. They discuss a disappointing draw at Bournemouth, a not so disappointing draw against Liverpool and a crushing defeat at Chelsea - Is time nearly over for Erik Ten Hag?
Then in a special second half of the pod, Nik welcomes Natalie ( https://twitter.com/natalie_17) to discuss the fortunes of Manchester United Women as they booked a place in the FA Cup Final after a historic first ever win vs. Chelsea.
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Net debt does go up though, which is the figure which has been reported.
In accounting terms it works differently which is why many people get confused.
Our debt showed it went up and people straight away suspected it was the Glazers borrowing more from the club, but it was actually just us spending from the bank but keeping our cash.
It's actually better for a business to hold onto their cash but borrow more. Sounds weird but with the way taxitation works it's better.
You obviously understand this, but i wish it was more commonplace for the everyay man to also be aware of this.
Debt in corporate world is not a scary word. I've taken out large loans in my own companies to fund operation. Debt helps keeping the actual profits in the company, helps with tax savings and is an excellent low cost source of funds.
In terms of spending, I'll just put up a very stupid and easy to understand example:
#1
You have £100k
You buy a player for £100k in cash
Now you have £0 in the bank, but a £100k non-realized (financial) asset. You now have to borrow funds from the bank to cover cost of operation, salaries etc. Cashflow has a delay, you always need cash at hand.
#2
You have £100k
You loan £100k
You buy a player for £80k, with annual installments for £10k and £10k
You now have £120k in the bank, a £100k player and money to pay the quarterly fee using your operation income.
Leveraging your debt and cash reserves coupled with income and cash flow is how you build a successfull strong business. If you take on "safe" debt, honeslty, get as much of it as you can. The loan institutions will take leverage in your asset. This is in simpleton terms how Manchester Untied is bought, through security in the club itself.
Regarding Net spend, that's not an actual thing in accounting, but that's a whole other topic.
Nice post, i'm no expert myself I just read and researched what smarter people than me have said, and as you say it makes sense/works better.
The press are the main influence in this though, they immediately jumped on "man utd debt increased by 50%, no transfers for them this summer!". To most that instantly is a red flag and causes outrage, but when you delve into it deeper it doesn't actually look that way at all.
Currently interest rates are at the lowest I can ever remember, so borrowing and keeping your cash is the smartest move (as long as you can pay it back).
If there's one thing Woodward understands its money, we have to remember that
he might not be a football man but he came from investment banking.If Bild are claiming that Bellingham has agreed to join Dortmund then i think Utd have lost out, because they are always right.
Where did bild say that?
Bild/Sportbild knew months before that he is coming. If they write it like that, it is done. Same for Meunier, which they said back then in February/March Dortmund already agreed a deal (before the Corona outbreak).
They aren't 100%, but their Dortmund/Bayern info is very reliable most of the time.
They aren't 100%, but their Dortmund/Bayern info is very reliable most of the time.
It's ok we will buy him back in a couple of years for £90m+
That's sportbild. If I'm not mistaken completely different newspaper to bild. I know one of them is more reliable, don't know which one though. Hopefully one of the German guys here will help
Dortmund are apparently offering double the salary we are offering at 60,000 quid a week and he'll go straight into the first XI there. So they must be the favourites to land him.
to be fair if thats true he probably should go there - and if hes half as good as people make out then like dembele, pulisic and presumably this summer sancho and next summer haaland it will be his turn for a move to a top club on mega money in 2022
They are different papers/websites and have their own writers and journalists, but they still collaborate from time to time and are under the same pusblisher. Bild are usually more reliable, since they aren't only dedicated to sports and if they say something, it usually is right, but if Sportbild claim all is agreed With Bellingham, then it would mean something as well. I mean Bild previously said they were favourites and agreed a deal in principle. Sportbild would only be confirming what Bild said before Corona. Same for Meunier by the way.
Bellingham is a 16 year old kid, who "only" played second divsion football thus far and would have to make the switch to a different country. You actually believe that a club with Dortmund's ambitions and players would promise him to go straight into the first XI?
Not promise him, but offering him a clear and credible path and opportunity for first team games? Absolutely. I think United can't even guarantee him first team opportunities at 16, while Dortmund can just show him how Sancho got plenty of minutes in his first season after a short while.
If true he would be making a good move to a club that brings through youth talent probably better than any other club ( having said that Manchester United do a good job of it too. ) by the time he is 18 or 19 he will be going somewhere bigger and getting mega money if he lives up to the hype. Probably the best move for him even though I would like to see him at United .
Ages Dortmund players made Debuts -
Nuri Sahin 16 years old 11 months
Pulisic 17 years old and 4 months
Gotze 17 years old and 5 months
Sancho 17 years old and 6 months
If the next Bundesliga starts in September then Bellingham will be 17 years old and 2 months
They'll obviously ease him in but after 3 months he'll be a starter.
Good luck to him and shame if we missed out.
Mejbri seems like he will be promoted instead, so let's see how he does.
Mejbri seems like he will be promoted instead, so let's see how he does.
That is one hell of a investment strategy. Lure supertalents with solid wages and promise of First team football, 80k fans at the home arena every other week. Re sell 2-3 years later at fantasy profits.
Boroussia Dortmund is probably the football worlds most successful farmer club at this point, right ahead of Ajax
Maybe Jude has looked at how Jadon has progressed in the last few years at Dortmund and wants to follow that path
Of course if they really want him they are always going to have an edge, and it's probably the best decision for him. It's the nature of the game. We can afford to buy players like Pogba and Fernandes, and they can't. The flip side of that is that a player like Bellingham can reasonably expect to go there and get first team games straight away, if he's good enough. Here, we can't realistically promise that.
We do a good job of giving young players chances compared to other clubs at our financial level, but we shouldn't expect to buy stars and sweep up all the promising youngsters. There has to be a balancing act.
We do a good job of giving young players chances compared to other clubs at our financial level, but we shouldn't expect to buy stars and sweep up all the promising youngsters. There has to be a balancing act.
If the reports are true that we offered him £30,000 a week, while Dortmund offered him £60,000 a week, then I think it's a little naive of the board to have been so confident in the media that we'd land him.
I understand the club don't want to upset the wage structure that youth players are paid, but if you're a young kid trying to create a career in the game, you're gonna take the best deal on the table considering the uncertainty attached to being a young footballer trying to break through.
I understand the club don't want to upset the wage structure that youth players are paid, but if you're a young kid trying to create a career in the game, you're gonna take the best deal on the table considering the uncertainty attached to being a young footballer trying to break through.
Now the rumoured 'Gomes signed a new deal' would make sense as well
A lot of Europe (especially Germany) are targeting younger English players. For a start, they're actually good. But secondly, English football is (was?) flooding with money. Everton spending £50m on single players, promoted teams spending near £100m.
So they know they get good quality players and sell back to England for a huge profit.
If English football is clever, we use that opportunity to further hone our technical skills and improve mentality.
He would go into the first team? Over who? he is touted to be a CM/ CAM where they have Reus, Brandt, Witsel, Can, Delaney, Dahoud?
I cannot see how you can guarantee first team football when there is so much choice.
They can't and they didn't. But they have a good track record, and if he is as talented as they think, he will force his way into the first team relatively quickly. Reus is a crock, Witsel already 31, Delaney is good but not irreplaceable and Dahoud is still inconsistent. He will get the chances and if he takes them, he could be a starter pretty soon. Reyna is young as well, but he gets game time here and there also.
He won't have a fix position i think and will play all over the midfield, but if he knocks on the door and is delivering, they will play him.
Delaney and Dahoud? Seriously? Dortmund will be very eager to ditch them in the transfer window.
When Jadon Sancho arrived, Pulisic was dumped to the bench as Sancho was far better. Same thing will happen with Bellingham
Funny how Dortmund offer him 60k a week and its development that attracts him..
I dont buy it
I dont buy it
Ofcourse, that is bound to happen with any player, but what if he fails to adjust? you cannot really guarantee first team football to a 16 year old.
Emre Can and Witsel are first choice. Lets see who they ditch.
Its because Pulisic was not really a proven player, it took a season before he was dumped. Although Pulisic did play alot of the games at the back end of last season.
Go luck to the guy if that's what he has chosen. He'd have only played a handful of games for us at best next year. I don't see anyone coughing up for Pogba in this financial climate and Bruno Fred and Mctomminay would be way ahead of him too. If he's going to play more there then it's probably a wise choice.
Centre Midfield is a complete different ball game to where all this young wingers, CAM and forwards go and do well at Dortmund.
Dortmund haven't exactly produced a mind blowing amount central midfielders for me - especially when you take the German ones away that number comes down quite thin. You compare that to their attackers which include RM,LM, CAM CF - you can almost bring them from any country and any league and see Dortmund develop them up a level (even that was bought in a question with their players not doing the best in other counties after they had left dortmund).
I dont find him technical advanced enough to play the attacking midfield role for them. I find his box to box game possibly too scary for Dortmund to play with their attacking fullback style.
I have a feeling that he won't do well there - but I am also enjoying the English players in different leagues thing, so aslong as it doesnt harm his career then I'm happy to buy the finished German/English progressed player in a couple year than the 16 year old version.
Dortmund haven't exactly produced a mind blowing amount central midfielders for me - especially when you take the German ones away that number comes down quite thin. You compare that to their attackers which include RM,LM, CAM CF - you can almost bring them from any country and any league and see Dortmund develop them up a level (even that was bought in a question with their players not doing the best in other counties after they had left dortmund).
I dont find him technical advanced enough to play the attacking midfield role for them. I find his box to box game possibly too scary for Dortmund to play with their attacking fullback style.
I have a feeling that he won't do well there - but I am also enjoying the English players in different leagues thing, so aslong as it doesnt harm his career then I'm happy to buy the finished German/English progressed player in a couple year than the 16 year old version.
Exactly
they act like a 17 year old will walk into their starting line up ffs.He will be a sub/rotation player at best. He probably won't even play for the first few months while he adjusts either.
Laughable. Sancho took a year to get into that team. He is playing in a position where we have been giving chances to youngsters too. Greenwood, Chong, etc..Exactly
He will be a sub/rotation player at best. He probably won't even play for the first few months while he adjusts either.
CM is a different ball game.
They're offering 60k because they're screwing Birmingham. That's all there is to it. They won't pay a real transfer fee. Just scummy behaviour.
Bild is the more reliable
Sportsbild not so much
Sportsbild not so much
Is he out of contract in the summer? I thought it runs until 2021.
It is yeah, BVB are cnuts!
The story about Bellingham having a agreement with Dortmund came out before the player and his parents visited Carrington and were given a tour by Sir Alex himself.
Since he was given a tour of United, it's been reported by the likes of Duncan Castles that the effort United made when he and his parents visited the club, has made a quite a impression on the Bellingham's.
Since he was given a tour of United, it's been reported by the likes of Duncan Castles that the effort United made when he and his parents visited the club, has made a quite a impression on the Bellingham's.
That is nonsense. Sancho needed a month or two and he was in the first team squad, with getting some game time as well. He was starting games for them in mid season in his first season.
Nobody is saying he will be a starter and play 30 games for them in CM. But being mainly a sub/rotation player in his first season at Dortmund and playing in the CL on good wages is a dream for every 17 year old. If he does well, he will have his pick of clubs in the PL in a couple of years.
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