Jadon Sancho | Official: Loaned to Villa

[Big Ben Foster]

Everyone seems to forget that breakeven analysis has to be done on the margin.

In other words, you have to also consider the PSR costs you would incur if Sancho doesn't get sold (amortization + wages for one year).

Sancho stays:
~£15m amortization cost + ~£10m wages = £25m PSR hit this year

Sancho leaves:
~£15m book value write down, offset by transfer fee for the total PSR hit this year

As you can see, there is no scenario where we are better off keeping him than selling him from a PSR perspective. Sancho is going into his final contract year, so we will be writing down his remaining book value one way or another.

It's all a bit of a moot point anyway - our PSR position is fine and what's really constraining us at the moment is cash.

 

[IrwinwasbetterthanCarlos]

How much something (or in this case, somebody) is worth is how much someone is willing to pay. People might roll their eyes at Juve’s bid, but I don’t see a queue forming behind them.

Obviously try to negotiate up, but when it comes to this absolute wastrel, it’s a buyer’s market and we can’t drive the price up so high they walk away from the table.

Lets be honest, we’re so desperate to shift this w**ker (and Rashford and the rest of the gang), I’m surprised they’ve not been listed on Facebook Marketplace and Vinted.

 

[Krakenzero]

Amusingly Juventus bid kind of reveals Sancho's actual yearly cost (8.6 + 4.3 divided by 52 weeks results in around £248k a week).

From a perspective of "value for United" Sancho is currently a 12-13M liability so any offer will improve the club's situation. A supposed 4.3M severance package for the player adds insult to injury but it just changes the deal from 21-25M net proft to a 17-21M one.

I would pay that last part in pennies just to piss him off though.

 

[Yakuza_devils]

Chelsea was willing to pay 25m to sign Sancho. But Sancho refused Chelsea's 5 years contract offer due to salary demand. Hence, Chelsea pay the penalty of 5m.

I think we should stand firm on 20m for Juventus to sign Sancho. Their current offer is too low. But it's just the opening bid. What about Napoli? It was reported they're interested too.

 

[golden_blunder]

Not a bad opening offer. Hopefully we can get 12.5 plus the add ons.

15, I’d be happy at that

 

[Pintu]

Chelsea was willing to pay 25m to sign Sancho. But Sancho refused Chelsea's 5 years contract offer due to salary demand. Hence, Chelsea pay the penalty of 5m.

I think we should stand firm on 20m for Juventus to sign Sancho. Their current offer is too low. But it's just the opening bid. What about Napoli? It was reported they're interested too.

I honestly doubt that... He is anything but a Conte type player. And they've already got KDB who is going to be THE player with less defensive duties.

 

[FrankDrebin]

15, I’d be happy at that

Yep.
Just move him on.

 

[gorky_utd]

The worst ever signing.

 

[pascell]

Di Marzio saying Juve will contact us again to reach an agreement on Sancho. Hopefully this stops the panic and prevents us accept that absurd low-ball offer.

 

[Yakuza_devils]

Di Marzio saying Juve will contact us again to reach an agreement on Sancho. Hopefully this stops the panic and prevents us accept that absurd low-ball offer.

Yeah... 20m or no deal considering we need to pay Sancho severance package as well.

 

[Leftback99]

It's all a bit of a moot point anyway - our PSR position is fine and what's really constraining us at the moment is cash.

Is it fine or is everyone just assuming it is fine because we weren't close to breaching it last season?

 

[Big Ben Foster]

Is it fine or is everyone just assuming it is fine because we weren't close to breaching it last season?

If we passed last season and now our cost structure is more disciplined, I have a hard time seeing how we'd struggle to pass this season.

Either way, it's true in a relative sense: we have almost a year to manage this period's PSR. Cash is the more urgent matter.

 

[Leftback99]

If we passed last season and now our cost structure is more disciplined, I have a hard time seeing how we'd struggle to pass this season.

Either way, it's true in a relative sense: we have almost a year to manage this period's PSR. Cash is the more urgent matter.

Agree but with the hefty transfer business of the last 3 years coming through, and lower income this year (due to terrible performance on the pitch) I doubt it's all that great either. Just wondered if we've seen anything.

 

[AneRu]

The poster is probably referring to ‘book value’, because selling below that will hamper United from a regulatory perspective.

On this particular account it will but we are also getting around his book value from our sale on clauses on Elanga and Alvaro Fernandez so it covers us a bit. The removal of his wages and the fee, though negligible, will cover us and maybe allow us to make a down payment on a £40m signing.

If we manage to squeeze a permanent sale on Rashford we will start to feel like we are getting out of the woods a bit, financially, as we would be left with one toxic contract to manage out but still Casemiro is a productive player that we can use, if we manage him correctly and give him the needed protection.

From hereon in, £300k/week deals need to be reserved for phenomenal players who have delivered massively for us.

 

[OverratedOpinion]

Purely looking at the level of player and the transfer market, I think 15 would be really cheap.

But I'd still be absolutely delighted to take it and get shot.

 

[stepic]

Purely looking at the level of player and the transfer market, I think 15 would be really cheap.

But I'd still be absolutely delighted to take it and get shot.

You gotta take other factors into play though, namely last year of contract and the large wage

 

[Footyislife]

£20M and no severance. He can rot another year. We are fine with PSR, we are getting murdered because we can't sell for value.

We have to show clubs if they don't pay they won't get. And to do that sometimes you have to take a hit and send a message.

 

[OverratedOpinion]

You gotta take other factors into play though, namely last year of contract and the large wage

I think the biggest consideration is that he's seemingly a bad egg and any buying club is taking a risk in whether he wakes up feeling like playing football today.

 

[spwd]

You would have thought he'd taken the Chelsea offer and then just sat on his arse playing fifa with his London mates. Going to Juventus it's like he's still interested in football unless the fifa community is big there.

 

[JBG]

The worst ever signing.

Makes Antony look like a bargain

 

[Wezzaldo]

Sweet Jesus can you accountants feck off to a PSR thread please. Reading all this is making me want to bleach my eyes

 

[gaffs]

Everyone seems to forget that breakeven analysis has to be done on the margin.

In other words, you have to also consider the PSR costs you would incur if Sancho doesn't get sold (amortization + wages for one year).

Sancho stays:
~£15m amortization cost + ~£10m wages = £25m PSR hit this year

Sancho leaves:
~£15m book value write down, offset by transfer fee for the total PSR hit this year

As you can see, there is no scenario where we are better off keeping him than selling him from a PSR perspective. Sancho is going into his final contract year, so we will be writing down his remaining book value one way or another.

It's all a bit of a moot point anyway - our PSR position is fine and what's really constraining us at the moment is cash.

Agree. Even if we only get pennies on the pound, we are better off getting rid. Especially as Amorim wont play him.

 

[gaffs]

You would have thought he'd taken the Chelsea offer and then just sat on his arse playing fifa with his London mates. Going to Juventus it's like he's still interested in football unless the fifa community is big there.

You know you can play Fifa online now?

 

[saivet]

It's a good job some of you aren't negotiators, expecting we should just accept any bid that comes in.

 

[spwd]

You know you can play Fifa online now?

Don't ruin my joke

 

[Sandikan]

Hard pushed to find a more disappointing transfer than this in the last decade, even by our standards.

Sanchez was probably a bigger one in reputation / actual performances in this league, versus output, but he was basically a 30m swap for Mhky.

To wait a year, bang £70m + then slowly realise he's not fast, strong, up for the division was truly horrible. Not to mention that he doesn't like playing on the right wing, for which he was bought.

While 15-20m sounds hilariously low, when Birmingham in league 1 bought a striker for that, we simply need to cut our losses now for whatever we can.

Every week we delay it's 250- 300 odd grand it's costing us, even with no champions league!

 

[Red_toad]

Everyone seems to forget that breakeven analysis has to be done on the margin.

In other words, you have to also consider the PSR costs you would incur if Sancho doesn't get sold (amortization + wages for one year).

Sancho stays:
~£15m amortization cost + ~£10m wages = £25m PSR hit this year

Sancho leaves:
~£15m book value write down, offset by transfer fee for the total PSR hit this year

As you can see, there is no scenario where we are better off keeping him than selling him from a PSR perspective. Sancho is going into his final contract year, so we will be writing down his remaining book value one way or another.

It's all a bit of a moot point anyway - our PSR position is fine and what's really constraining us at the moment is cash.

Yet he's supposedly asking United to pay him out from his contract, so we'd end up giving him most of the quoted fee.
I hope United are better at bargaining, than some of the posters where, who appear to want the club to be very submissive and allow other clubs to dictate terms.

 

[Big Ben Foster]

Yet he's supposedly asking United to pay him out from his contract, so we'd end up giving him most of the quoted fee.
I hope United are better at bargaining, than some of the posters where, who appear to want the club to be very submissive and allow other clubs to dictate terms.

I'm not saying don't negotiate, I'm responding to the armchair accountants who think anything below £20m or £15m is an accounting loss. It's not.

If we give him away for free and pay his wages in full, we are breaking even this year from a PSR perspective. Obviously I don't think we should do that, as it would be quite stupid - I'm just pointing out that any PSR analysis has to consider the costs you are committing to incurring this year in lieu of a deal.

 

[sourdough satellite]

Yet he's supposedly asking United to pay him out from his contract, so we'd end up giving him most of the quoted fee.
I hope United are better at bargaining, than some of the posters where, who appear to want the club to be very submissive and allow other clubs to dictate terms.

Apparently he's asking for 5m euros, as that is the difference between what Juve is willing to offer salary-wise and the remainder of his salary at United.

This will get done at 15 + 5m IMO.

 

[the_cliff]

Well you're still making a "loss" in that scenario, since it's a bunch of money you're spending for nothing

Oh I agree completely. But for some reason people here are saying we won't make a loss on him in terms of PSR if we keep him and pay him bleeding 300k a week. take 15 pay sancho 5 mill to feck off and not have to pay his salary is a win feck PSR.

 

[pratyush_utd]

Agreeing a fee with Juve wont be an issue. Sancho needs to agree salary with Juve. Unless that is confirmed, there is no point in any other news.

 

[Ronaldo's Love Child]

Di Marzio saying Juve will contact us again to reach an agreement on Sancho. Hopefully this stops the panic and prevents us accept that absurd low-ball offer.

Well, whoever answers the phone at United should just blurt out "ok-deal!" before Juve utter a single word.

 

[Ekeke]

Sounds like Juventus just sawan oppertunity to sign him for peanuts if they can convince him to take a paycut. Not a serious option if United are still keeping to around the £25 million figure... I personally think we should be asking for a lot less with his contract situation now, but it almost seems to me like we're determined to keep around the figure we were asking from Chelsea. He's going to end up staying till the end of his contract if we arent willing to take that figure down a lot.

 

[Theo88]

Sounds like Juventus just sawan oppertunity to sign him for peanuts if they can convince him to take a paycut. Not a serious option if United are still keeping to around the £25 million figure... I personally think we should be asking for a lot less with his contract situation now, but it almost seems to me like we're determined to keep around the figure we were asking from Chelsea. He's going to end up staying till the end of his contract if we arent willing to take that figure down a lot.

He won’t. We are going to cave eventually. It’s the best of 2 awful situations. People keep saying stick him in the reserves, which is fair but let’s be honest we are still paying him 10-15m to do nothing if that was the final outcome. That money is money the club needs to be in a better cash position next year - ignore the psr for a bit.

Same applies to Rashford. Letting both go even at a ‘loss’ improves overheads position significantly this year - that’s probably +20-30m in net cash position is it not ? It would make us a lot more flexible in the market a year from now. Perhaps.

 

[Big Ben Foster]

He won’t. We are going to cave eventually. It’s the best of 2 awful situations. People keep saying stick him in the reserves, which is fair but let’s be honest we are still paying him 10-15m to do nothing if that was the final outcome. That money is money the club needs to be in a better cash position next year - ignore the psr for a bit.

Same applies to Rashford. Letting both go even at a ‘loss’ improves overheads position significantly this year - that’s probably +20-30m in net cash position is it not ? It would make us a lot more flexible in the market a year from now. Perhaps.

Even from a PSR perspective, getting him off our books is a win

 

[s3w4g3]

What do you guys think about getting Vlahovic in some kind of trade deal? We have no use for Sancho, but maybe some use for Vlahovic in case we can't get any other striker?

 

[hellhunter]

What do you guys think about getting Vlahovic in some kind of trade deal? We have no use for Sancho, but maybe some use for Vlahovic in case we can't get any other striker?

Absolutely not

 

[Pintu]

What do you guys think about getting Vlahovic in some kind of trade deal? We have no use for Sancho, but maybe some use for Vlahovic in case we can't get any other striker?

Absolutely not

He is better than Højlund… but that is a pretty low bar. And Vlahovic is on insane wages. Maybe a 1 year loan where he gives up some of his wages could work.

 

[hellhunter]

He is better than Højlund… but that is a pretty low bar. And Vlahovic is on insane wages. Maybe a 1 year loan where he gives up some of his wages could work.

I'm not even convinced he looks better than Hojlund did in Italy

 

[GoldanoGraham]

What do you guys think about getting Vlahovic in some kind of trade deal? We have no use for Sancho, but maybe some use for Vlahovic in case we can't get any other striker?

We need to avoid buying players from Serie A as they are not ready for the change to EPL immediately - especially strikers/forwards - we need players arriving ready to hit the ground running.