Jadon Sancho| Staying at Dortmund for now

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DomM

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Not a chance this is happening. We need to offload some players first, PJ, AP, MR, and more before we start buying quality replacements, and I cant see anyone buying them unless they are willing to reduce their wages.
 

Sparky_Hughes

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I think one issue is the club have made an assessment, that no matter what players we get, competing with Klopp and Pep is highly unlikely. So spending money now does not affect us much. Our squad is still 3rd best and we still should make top 4 easily. Waiting till next year when prices are lower across football is a reasonable strategy.
You cant seriously believe that? Once you get past our first 11 our squad options are gash!
 

Cnaiür urs Skiötha

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Interesting article from Luckhurst today about the Sancho transfer. This is his main point:

"Amid the ongoing uncertainty over the coronavirus pandemic and the delay to supporters returning to stadiums, United sources insist the extension to their financial results allows them to offer investors as much clarity as possible due to developing events.

United will complete their fiscal first quarter on September 30 2020 and any transfer activity before that date would be reflected in the financial reporting and accounts dated September 30, which would then be reported to investors in mid-November.

There is an incentive for United to delay any bid for Sancho until after September 30, which would mean the transfer would only be reflected in the fiscal second quarter accounts ending December 31 2020. As a public company, there is logic in United delaying a bid until between October 1-5, given the benefit of reporting such a material transaction in the quarter ending December 31, rather than in the current quarter that will detail severe losses."

https://www.manchestereveningnews.co.uk/sport/football/man-utd-transfers-jadon-sancho-18983507
Does not make sense to me from an accounting/reporting point of view. In case we buy a player we would show him within our assets with the market value (=purchase price) and reduce our cash or account for a liability in the same amount. So at least in IFRS there should not be PL effect as long as we are not talking about a day one loss, which we assume is surely not the case.
So maybe the liquidity or current/quick ratio might be a bit worse but otherwise there is no real effect.

Just another excuse. The most likely explanation is probably that the whole Sancho thing has been pushed to get the fans excited before we hear that we just do not have the money or the Glazers do not want to spend, with COVID giving them a perfect excuse this year.
 

SuperiorXI

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They wouldn't delay the deal just to make their financial quarter look less of a shitshow, the investors aren't thick... in fact it's more likely they'd want it in this quarter so they'd have more of an excuse for the losses!
 

SATA

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I want to believe that report but even just an official bid would be recorded into the accounts books? That doesn't make any sense. Why not just bid for the player, get the deal accepted and done and officially announce it after September 30?
 

djdhrubs

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They wouldn't delay the deal just to make their financial quarter look less of a shitshow, the investors aren't thick... in fact it's more likely they'd want it in this quarter so they'd have more of an excuse for the losses!
Not that I have a clue what I'm talking about, but there may be written rules/ consequences to showing x % loss in any given quarter. So it may not just be about pulling the wool over dumb investors' eyes.
 

RUCK4444

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They wouldn't delay the deal just to make their financial quarter look less of a shitshow, the investors aren't thick... in fact it's more likely they'd want it in this quarter so they'd have more of an excuse for the losses!
I don’t think it would be just to try and appease investors. They still have an obligation to make the quarter look as best as it can. That’s the same in any business, public or not.
 

Hoof the ball

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In order to believe that we'll easily make top four is to :-

1. Assume that we'll continue our post-January run of form which was 2nd behind only Liverpool. It's not realistic to expect that we can maintain that level of performance over an entire season with the squad depth we have. In fact, the tail end of last season proved that this was the case when Fernandes' form dropped and players fatigued.

2. Assume that both Spurs and Arsenal will perform reasonably the same as last year across the board, which is not realistic to expect given that Spurs now have a front 3 of Bale, Kane, Son and a number of key acquisitions in important areas, and Arsenal are showing obvious progression under Arteta plus a number of new signings.
 

Judas

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He really fecked us over last year, though, by signing that contract extension.

That’s precisely what has killed off the transfer for this season.
Really? I don't think that made much of any difference, Dortmund would have been asking for the exact same sort of money either way I think. Maybe maybe it gave us less wriggle room to get the price down, but I'm not so sure.
 

RedAustrian

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Really? I don't think that made much of any difference, Dortmund would have been asking for the exact same sort of money either way I think. Maybe maybe it gave us less wriggle room to get the price down, but I'm not so sure.
I think this made a huge difference. We would have got him for 100 Million sure, because Dortmund wouldn't risk losing him in 2021 for a less significant fee.
 

Mart1974

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Interesting article from Luckhurst today about the Sancho transfer. This is his main point:

"Amid the ongoing uncertainty over the coronavirus pandemic and the delay to supporters returning to stadiums, United sources insist the extension to their financial results allows them to offer investors as much clarity as possible due to developing events.

United will complete their fiscal first quarter on September 30 2020 and any transfer activity before that date would be reflected in the financial reporting and accounts dated September 30, which would then be reported to investors in mid-November.

There is an incentive for United to delay any bid for Sancho until after September 30, which would mean the transfer would only be reflected in the fiscal second quarter accounts ending December 31 2020. As a public company, there is logic in United delaying a bid until between October 1-5, given the benefit of reporting such a material transaction in the quarter ending December 31, rather than in the current quarter that will detail severe losses."

https://www.manchestereveningnews.co.uk/sport/football/man-utd-transfers-jadon-sancho-18983507
Call me a cynic. Even if Utd Bid now, there is no guarantee that the deal would complete before next Friday and would therefore fall into the next quarter. I suspect this is just Luckhurst keeping the click bait going and if I am wrong and we sign Sancho, I am happy for you to remind me of this....
 

Mart1974

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Does not make sense to me from an accounting/reporting point of view. In case we buy a player we would show him within our assets with the market value (=purchase price) and reduce our cash or account for a liability in the same amount. So at least in IFRS there should not be PL effect as long as we are not talking about a day one loss, which we assume is surely not the case.
So maybe the liquidity or current/quick ratio might be a bit worse but otherwise there is no real effect.

Just another excuse. The most likely explanation is probably that the whole Sancho thing has been pushed to get the fans excited before we hear that we just do not have the money or the Glazers do not want to spend, with COVID giving them a perfect excuse this year.
There was an interesting article posted on another thread about Utd's debt covenants and what that might mean for this transfer. From an accounting perspective, it is the only thing I have read that makes any sense.
 

SATA

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Call me a cynic. Even if Utd Bid now, there is no guarantee that the deal would complete before next Friday and would therefore fall into the next quarter. I suspect this is just Luckhurst keeping the click bait going and if I am wrong and we sign Sancho, I am happy for you to remind me of this....
He said 'according to United sources' though so don't think it's clickbait. Perhapd he's been told on something by the club itself
 

TheNewEra

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Starting to have zero faith in United, although I'd like Sancho to come.
 

Cliche Guevara

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Really? I don't think that made much of any difference, Dortmund would have been asking for the exact same sort of money either way I think. Maybe maybe it gave us less wriggle room to get the price down, but I'm not so sure.
I think with two years left this might have been the must-sell summer to maximise transfer fee and avoid him going down to one year left next summer.

That extension basically put us where we were last year with Dortmund having no need/reason to sell for another season.

I was certainly convinced he was coming until the extension was revealed when their deadline passed. At that point I immediately gave up hope.
 

SATA

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Brophs

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Yesterday's news but yeah he did say that. Sarr has also been left out of Watford squad last week although the official reason for it wasn't really known
Explosive diarrhoea.
 

SuperiorXI

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I don’t think it would be just to try and appease investors. They still have an obligation to make the quarter look as best as it can. That’s the same in any business, public or not.
It's a quarter that contains a transfer window though, so the investors will understand if there are losses; it's just the way football works.
 

peridigm

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Yesterday's news but yeah he did say that. Sarr has also been left out of Watford squad last week although the official reason for it wasn't really known
Per Watford's website.

Enthusiasm grows over the imminent return to action of club captain Troy Deeney and Ismaïla Sarr, both of whom are training with the first-team group and available for selection this Saturday.
 

dinostar77

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Utd are set to lose £140mil through the covid crisis. Losing £4mil per home game. No way Sancho happens now, especially as fans arent allowed into the stadium. I'd happily take a winger on loan now.
 

Chief123

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He really fecked us over last year, though, by signing that contract extension.

That’s precisely what has killed off the transfer for this season.
He really fecked us over by securing his future? Players aren’t going to run down their contracts at such a young age. It takes one leg break and he would only have 2 years of salary before his career could potentially be over.

If anything, he could argue we could have signed him last summer and he wouldn’t need to extend. Dortmund gave him a wage rise in return for extending one more year to protect his value.

It is reported that Dortmund promised him if an offer of 120m euro was met then they would accept it. That hasn’t happened yet so not really Sanchos fault.
 

Random Task

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Really? I don't think that made much of any difference, Dortmund would have been asking for the exact same sort of money either way I think. Maybe maybe it gave us less wriggle room to get the price down, but I'm not so sure.
Dortmund would have been in a weaker position had Sancho not agreed to the extension, and a little more open to the sale as a consequence.

They aren't selling him now, not at this late stage of the window where finding his replacement is that much more difficult.
 

cyberman

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Utd are set to lose £140mil through the covid crisis. Losing £4mil per home game. No way Sancho happens now, especially as fans arent allowed into the stadium. I'd happily take a winger on loan now.
In 12 months we will be looking back at how ridiculous these prices are, for players who moved and didn't move.
Next summers window is going to be flooded with quality players from clubs that need to sell.
 

poleglass red

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Utd are set to lose £140mil through the covid crisis. Losing £4mil per home game. No way Sancho happens now, especially as fans arent allowed into the stadium. I'd happily take a winger on loan now.
on the other hand though, Dortmund are a selling club even when they have capacity crowds, right now they are hurting also during covid. There is also the recent announcement that Utd will complete their fiscal quarter on Sept 30th, any big transfer done before that date would be included in their accounts for that qtr. If Utd signed Sancho after that date, that figure would be included in 2nd qtr. Utd are a public co so reporting a large transfer fee in this qtr is not appealing to them. It is still very difficult to see it happening, with timelines etc, but it's football, maybe a deal was reached on the understanding they wait until after sept 30th.
 

Bobade

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There won't be losses either way. Players are capitalised as assets so will not cause losses on the P&L. There will be a change to the balance sheet and wages will affect the P&L but the purchase won't cause the bottom line to suffer.
 

VP89

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Utd are set to lose £140mil through the covid crisis. Losing £4mil per home game. No way Sancho happens now, especially as fans arent allowed into the stadium. I'd happily take a winger on loan now.
Aren't dortmund likely to have a bigger hit on their accounts, relative to their balance sheet?
 

Nou_Camp99

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Aren't dortmund likely to have a bigger hit on their accounts, relative to their balance sheet?
I think it was posted somewhere that the percentage lost against turnover will be fairly similar to ours. We will lose more money of course but we make a lot more for example.

They aren't in £400m worth of debt though and don't have blood sucking parasites at the helm don't forget.
 
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