And what you are describing, assets amortization, doesn't represent the "transfer spend". In this case it is simply an accounting practice that spreads the cost over the life of the asset which means that for example when players extend their contracts it alters the amortization. In the club's consolidated financial statement, transfer fees are in the Trade and other payables section and specifically included in trade payables.
100m budget for 2019 Summer window
- Thread starter bond19821982
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Amazing to think that we haven't learnt from previous years. To not to have signed a starting 11 player yet astounds me.
That's what I'm thinking.
Had the same story been printed last Summer, fans on this forum would not have believed it, even though it would later turn out to be true.
At this stage, I have no idea what to believe. Woodward is trying to save money - I know that for a fact. So this would fit in with Woodward's planning.
Given our time restraints, it's 37 days before the window closes (1st August right?).
I would focus on signing AWB (he's overpriced for his ability but we've spent way too long to give up now).
I'd also sign Bruno Fernandes (again another player like AWB we've spent so much time chasing him we just need to get it done and move on).
I'd then focus all of our attention on signing Nicolas Pepe.
That leaves us without a new CB (pretty bad granted). But it would completely redesign our right wing which has been a glaring weakness of ours for years (if not close to a decade). With the addition of Fernandes we'd also have two new sources of goals (Pepe and Fernandes) which should ease the pressure on Pogba and our strikers. Granted it's not ideal and the squad would still need major work but at least we'd (on paper at least) fix at least two issues in the squad. Our defense would be improved with AWB in the team at least and it gives us a season to assess Tuanzebe. We can then prioritise DM and CB next summer.
I would focus on signing AWB (he's overpriced for his ability but we've spent way too long to give up now).
I'd also sign Bruno Fernandes (again another player like AWB we've spent so much time chasing him we just need to get it done and move on).
I'd then focus all of our attention on signing Nicolas Pepe.
That leaves us without a new CB (pretty bad granted). But it would completely redesign our right wing which has been a glaring weakness of ours for years (if not close to a decade). With the addition of Fernandes we'd also have two new sources of goals (Pepe and Fernandes) which should ease the pressure on Pogba and our strikers. Granted it's not ideal and the squad would still need major work but at least we'd (on paper at least) fix at least two issues in the squad. Our defense would be improved with AWB in the team at least and it gives us a season to assess Tuanzebe. We can then prioritise DM and CB next summer.
What do you think are the reasons behind Woodward's, to use a polite term, frugal approach to transfer spending?
Players now cost a lot more money. We have lost 2 midfield players in Fellaini and Herrera who we haven’t replaced. Plus we have to find a replacement for Ashley Young at RB and we also obviosly need a RW in our attack for ages. I also see we should find a CB to be the leader of the defense, but that could wait a year. So we need this year 4 players just to have a complete working team, and you can quickly see 100 million is not enough.
Assuming we sell Pogba, what would Cafs consensus be if these are our 5 signings this summer?
1. Daniel James
2. Sean Longstaff
3. Wan Bissaka
4. Declan Rice
5. Harry Maguire
1. Daniel James
2. Sean Longstaff
3. Wan Bissaka
4. Declan Rice
5. Harry Maguire
We would be bereft of creativity and technical proficiency.
Five players means it's a sign of serious rebuild. All of them have potential to improve themselves and the team but without solid source of goals these deals may be for nothing in terms of fight for CL spot.
We simply need attacking power to outscore opponents, it's basis for any attacking football.
Terrible.
Disgusting.
Aye, we'd have improved our back 4 whilst weakening our midfield and attack. Would be a shite window.
The only hope I have is that outside of Real Madrid, there’s not been a lot of activity from other clubs.
Surely the parasites are looking to sell in the not too distant future. If not then not sure what they are looking to achieve spending peanuts on a already failing team for the last few windows.
There was a report that I glanced at earlier which claimed Woodward got a large pay rise last season for having the lowest net spend in years. Do I believe it? No, but he may be awarded bonuses on his P&L columns.
Or perhaps we’re tightening belts before a sale
Thanks. P&L theory sounds plausible although my understanding of this subject is limited.
@Coops73 Perhaps depends on who we're prospectively selling to?
Or maybe they will blow all our negative expectations away in July..
True, out of the frying pan and into the fire and all that but right now I’d just be happy to see them go.
Could happen, I’m just not getting those vibes right now.
I don't want to give you false hope but the reality is that you never have actual vibes, only a handful of peoples have an actual clue and unless they talk to someone, no one knows how advanced a transfer is.
Yeah, I know, I’m obviously surmising.
Nah. Better to be pessimistic. Realistic i mean.
The reality is that you aren't going to be able to solve all these problems in one transfer window.
You are probably going to have to settle for 2-3 players this summer. That should still make you strong enough to either finish in the top four or win the Europa league?
If you sign three good young players and qualify for the Champions League, you will have had a good season.
If you don't qualify for the Champions league then your manager will be gone and you will probably get a much better manager.
Either way you will be in a much stronger position this time next year.
I can’t believe a Liverpool supporter is more optimistic about where we will be next year than I am, maybe because I have seen our club make mistake after mistake and it makes me not enthusiastic about our prospects. If we only sign 2-3 players, it all depends who they are. I just don’t believe this experiment of buying relatively inexperienced young players is going to work at all. Many see the James signing as a low risk signing, but I see it as a high risk / low outlay signing, which in my view is not what’s needed at a massive club like ours.
Great post which I agree with most of - except the bit about getting a much better manager. Think most of them are gone now, especially if we don’t qualify for CL again.
I laughed initially when reading this then thought, hold on we have renewed Smalling, Jones, Young and Mata contracts.....if we were rebuilding, wouldn't you have expected that these were the names that would potentially be going than staying? I suspect whilst it might be more than 100m, that would be on the basis of having to replace Pogba, Rom or DDG where we would be spending the money we got for them anyway.
Also might make sense why Ole was appointed as maybe another manager would want to clear the decks where Ole appears to rate some players a lot higher than most. I am genuinely worried as I thought they would be more activity than at present. Deals take time to get over the line but I'm not exactly inspired by who we are being realistically link with anyway....
Also might make sense why Ole was appointed as maybe another manager would want to clear the decks where Ole appears to rate some players a lot higher than most. I am genuinely worried as I thought they would be more activity than at present. Deals take time to get over the line but I'm not exactly inspired by who we are being realistically link with anyway....
Really starting to get the impression the club is regretting appointing Ole so early and are not going to back him in the market. It cannot be feasible, if reports are to be believed, that we can’t close a deal for a RB, who wants to be here, and not look at other targets at the same time. If that is the case then Ed needs to be relinquished of all matters related to football. But we’ve known that for a long time.
@Leftback99 - you seem knowledgeable on the subject so can I ask.....the money we have spent post-SAF under Moyes, LvG and Jose....am I right in thinking that the majority, if not all, of these transfers will be amortised on the balance sheet in this way i.e. an annual deduction for each year of their contract?
I have been thinking about a theory that the Glazers went for bust during this period in the hope of buying our way out of trouble short term and paying it back over the next 4/5 season, during which there would be minimal investment. Wondered if it stacks up with what we are seeing on the balance sheet?
What people need to realise is that Woodward is a puppet, a highly paid puppet but a puppet. His role is to keep the spotlight off the real culprits in this scenario , the Glaziers .
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Our average net expenditure since Fergie retired is just over £100m. So I am not surprised.
The worst part is we are abysmal at shifting players.
The worst part is we are abysmal at shifting players.
The difference is we are in a far worse position now. 100m gets you nowhere in the market especially if we want to build a title contending team again. We must be the worst run “elite” clib. It’s no surprise players don’t want to come.
Feel so cynical so i dont think it doesnt matter what kind of players we sign. Even Messi would probably be shit in United atm. Need to sort out the football side of the club with new people and a DOF. They need to form a longterm strategy for what kind of football we want to play and appoint managers with that in mind and how we are supposed to achieve it in a certain timespan. Just dont think anything on the pitch will change until that happens.
I agree that it isn't enough but from a financial pov, I can see why it is set at £100m. Pur revenues are expected to fall this season, we have problem selling players and there is no guarantee of CL football at the end of the season. There is also strong evidence our commercial revenue is beginning to plateau.
This club isn't as rich as people like to assume.
The amortization tells you nothing about the way an asset is paid, even if you pay everything upfront from an accounting standpoint the cost will be spread over the useful life of the asset.
The eerie silence which is Eds transfer windows is getting less and less surprising ever year. 100 million to spend ? Lets hope its closer to 300 because unless we sign a RB a CB at least one CM and possibly another striker we have no hope of top 4 nevermind challenging the top 2
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The club is extremely rich but people don't really know what it means. Our team is probably overpaid by a good 100m, that money is yearly gone. People wonder why we aren't blowing smaller clubs away in the market, it's simply due to the fact that we already have financial commitment and these commitments aren't efficient at all. Just a reminder for people who think that the club isn't spending, the club's revenue in 2018 were 590m, the operating expenses were 562m, these are massive figures in football.
Yes, it's the point I am trying to make. Almost all of our revenue is already committed. I have always said it, this club is going nowhere until we clear the decks. Our wage bill alone is almost £300m. We have tons of players with almost no book value. We are a mess.
Yes, from what I've read that's how it works.
This explains it better:
https://newtrendsinaccountingandfin...otball-clubs-use-accounting-and-amortization/
It's a different thing to how we actually 'pay' for the players though.
Other clubs finances eg. Liverpool have been boosted by sales. We can't afford £150m a year and hardly getting anything back every year.
It’s sad because all these problems have come from shiteous decision making from the top. Giving transfer power to a moron accountant, failing to get a proper DOF, penny saving by tolerating mediocrity, signing players without a proper vision etc. they’ve brought this on themselves. In the end, this is a football club and our results determine our value. They’ve grasped this too late.