Putting the Sanchez transfer fee into context (financial comparisons)

[Raees]

I think we've done great business but looking at the OP. 1. Mhki's transfer value shouldn't be ignored. 2. All of the other players mentioned are young and will most likely still have huge sell on value at the end of their contracts. Sanchez won't.

That said I still think this is a phenomenal deal for us. Jose's signings have generally been outstanding.

Still don't get the Mkhi transfer value point. Can someone explain it to me and use figures to make the point of how you would change the calculation?

Point in bold. Excellent point.. didn't think of that. We can definitely be criticised with regards to that line of argument.. though funnily enough, no one has really pushed that point.

 

[Jagga7]

Only people on the inside know the real figures of this transfers and wages. This is just pure speculation.

 

[MiceOnMeth]

It all depends on how you calculate Mkhitaryan's value - in this case it would appear to be £35M which is what Arsenal valued Sanchez at. I'm not sure how much United would have asked for/received for Mkhitaryan if he was being sold in this window and we will never know.
I actually thought that had United paid around £15M for Sanchez plus Mkhitaryan that would have been a decent enough deal from United's POV. A lot depends on how you look at this transfer and there are obviously United's and Arsenal's own aspects on it. Who, if anyone, got the best deal will only be known when you see how the two players perform at their new clubs.
I think most United fans will see it as one of the best attacking talents around just now came in and United swapped him for a player who had been under-performing and needed to move on.

Indeed, Mhki is 29 and in the worst form of his life, who realistically would have wanted him? Dortmund maybe, but i couldn't see them spending more than 20 million euros for him so all in all this deal looks a fantastic one for us, kudos to Jose and Ed

 

[Massive Spanner]

this thread is the Utd equivalent to Glaston talking about Net spend.

 

[Leftback99]

It needs a transfer fee for Sanchez and agent and signing on fees for the others. With Raiola's reputation there was probably a cost of pushing Mkhitaryan out of the door aswell. It's all guesswork anyway.

 

[whatwha]

You need to add the transfer fee. Mkhi with 3 years remaining on his contract would have gone for at least 40m in the summer under the current market conditions.

Also, all those are young players with a resale value. Don't think Sanchez would have much value when his contract finishes.

Shh, people are trying to feel extra good about this transfer, don't disturb them with facts.

 

[whatwha]

Pogba on 200k ? Is that accurate ?

And Dembele on 220k ??
He's a teenager ffs.

Pogba is on close to 300k.

 

[roonster09]

I really don't care what he cost.

We can comfortably afford it.

Good point. Upgraded not wanted player with world class player. That's important for us.

 

[Norris]

Pogba is on close to 300k.

Yeah, even I thought he was getting close to 240-270k.

 

[Bwuk]

Good point. Upgraded not wanted player with world class player. That's important for us.

Exactly. Don't we have the lowest percentage of wages vs turnover in the league? We could of probably paid Sanchez double if we wanted.

 

[roonster09]

Shh, people are trying to feel extra good about this transfer, don't disturb them with facts.

Facts? None of the numbers (except one or two published transfer fee)on this thread are facts, everything is guess work. Not a thread to talk about facts.

Also don't think extra 30-35 million over 4.5 years would change whether deal was good or very good for us.

 

[balaks]

Are Sanchez's wages not reported to be £500k?

 

[roonster09]

Are Sanchez's wages not reported to be £500k?

From 300k to 600k. You can pick any number.

 

[Classical Mechanic]

• Neymar - £200m + £660K a week (Pre tax) on 5 Year contract = £200m +172m in wages = £372m overall
• Coutinho - £140m + £240K a week (Pre Tax) on 5 year contract = £200m +63m = £263m Overall
• Dembele = £135.5m + 220K a week (Pre tax) on 5 year contract = 135.5m + 57m = £192.5m overall
• Pogba = £89.3m + 200K a week (pre tax) on a 5 year contract = £89.3m + 52m = £141m overall
• Van Dijk - £75m + 180K a week (Pre tax) on 5 year contract = £75m + 47m = £122m overall
• Sanchez = £0 + £10m signing on fee, £15m to agent, £350k a week wages on a 4.5 year contract = 25m + 82m = £107m overall

So I was on the tube, and saw at least 3 papers describing the Sanchez transfer as monstrous, taking his salary into account, agents fees when none of this shit ever gets mentioned with other transfers.

So putting his transfer into context.. I haven't even put it into context such as the fact we save money on Mkhi's wages, nor have I been able to locate exact details relating to agent's fees etc for these other transfers or other bonuses but feel free to make amends to the figures used in my OP. Neymar's overall transfer was touted to be in region of £450m - but I am not sure how they reached this figure for example.. need more info.

But the bottom line is, signing a genuine star in Sanchez, a guy who will be the jewel in our attack and our main man for the money we did - is for my money, considering that he is playing for a historically ferocious rival for the money we did.. is an absolute bargain.

The narrative in the media about the fee is a fecking joke it really is. Sanchez salary is a touch overpriced, but does he deserve more wages than a Coutinho? feck yes, he's a main attacker for a side not just a playmaker support act. Secondly he's a sure thing, not a risk or a developing player like a Dembele and you're getting him on a free transfer effectively and you're trying to beat a rival like City to his signature. I'd say taking that all into account £300k would probably be a very fair price in this current inflated market.

Anyway feel free to add any further details, comparisons, thoughts.

The new Messi contract was reported at £500k a week, plus £80m signing on bonus on a 5 year deal!

 

[theyneverlearn]

Are Sanchez's wages not reported to be £500k?

That's what the media want you to think.

He is on 350 basic, when you add all the extras together inc. signing on fees and spread it across the term of his contract it works out at around that figure.

But you won't see any media report the same for other transfers.

 

[AngeloHenriquez]

It would be a fairer comparison to view it by year so you are comparing the same metric.

Also, those saying you need to subtract Mikhis wages, you don't.. we are looking at cost of Sanchez not the implication to Man United wages as a whole..

 

[balaks]

From 300k to 600k. You can pick any number.

Well if that's the range would it not be better to estimate the wage at being £450k as an average rather than £350k which is on the low side?

 

[roonster09]

It would be a fairer comparison to view it by year so you are comparing the same metric.

Also, those saying you need to subtract Mikhis wages, you don't.. we are looking at cost of Sanchez not the implication to Man United wages as a whole..

Going by year also won't help as others are young players do they might spend 10 years in the club or recoup all the money via transfer.

Not sure what's the best method though.

 

[Edgio]

I think the £180m originally reported is about right.

350k wages grossed up is £636k
Over 4.5 years is £148.9m
Mkhitaryan's book value, say £27m we paid = £175.9m
Agent fees of £5m = £180.9m

That's assuming any signing on fee is rolled up into wages.

 

[roonster09]

Well if that's the range would it not be better to estimate the wage at being £450k as an average rather than £350k which is on the low side?

Why? It doesn't work liKe that.

 

[AngeloHenriquez]

Going by year also won't help as others are young players do they might spend 10 years in the club or recoup all the money via transfer.

Not sure what's the best method though.

Of course, so that's another unit of measurement but solely from a cost point of view (Bearing in mind a future sale price has nothing to do with cost), the by year is the best metric.. it is the correct measurement for cost but potential ability, age and resale are good metrics for value

 

[Norris]

Also, those saying you need to subtract Mikhis wages, you don't.. we are looking at cost of Sanchez not the implication to Man United wages as a whole..

Exactly, completely agree with you mate.It doesn't make sense to me either. If we do that for United, we'd have to do it for all the clubs who lose a player and then sign a subsequent one.

 

[MadMike]

I don't know shit, but I suspect we had to pay a pretty hefty sign-on fee for Sanchez, something a lot higher than the normal. I reckon the rumours of him being on 450k per week is because of a sign on fee being amortised over the duration of the contract.

Really, even at 29, Sanchez is a 70m player comfortably (Matic was like 40m at same age). We picked him up for ~£30m or whatever the transfer value of Mkhi was identified as, but it wouldn't surprise me if we paid another 20-30 million to the player as sign on fee. Which, if amortised, would add another £150k or so to his weekly packet even if it isn't technically a salary.

 

[Loke]

That's what the media want you to think.

He is on 350 basic, when you add all the extras together inc. signing on fees and spread it across the term of his contract it works out at around that figure.

But you won't see any media report the same for other transfers.

How do you know he's on 350? You're choosing to believe that he's on lower than what's been reported. I wouldn't be surprised to see him on much higher. Also it's reported as after tax which OP isn't taking into account when referencing all those other players.

All of you reporting this low figures are guessing as much as the media. Credible source would be nice so put it to bed.

Either way he's the highest paid pl player ever, so whatever it is, it's stupid money.

 

[Raees]

FWIW you might be right that 350K is post tax. For me it doesn't make sense though to sign Sanchez on that much of a basic wage i.e. £600k pre tax.. it would throw the entire wage system at united out of sync and I genuinely don't think we would structure it like that. Again it is all speculation.. but £350k pre tax, for me makes sense.. maybe £450k max. Anything above that, stops making sense to me as contractual renewals etc.. it will start becoming troublesome.

That is why on balance of probabilities, I do think media is keen to overplay the figures and we're seeing outrageous numbers being thrown around.

 

[balaks]

That's what the media want you to think.

He is on 350 basic, when you add all the extras together inc. signing on fees and spread it across the term of his contract it works out at around that figure.

But you won't see any media report the same for other transfers.

So you are paying him around £500k then.

 

[Sied]

The figures Di Marzio quoted brought Sanchez out at about £425k a week. Presumably before tax. As he's been bang on about everything else Sanchez related, I'm inclined to belive him.

 

[Nick7]

How do you know he's on 350? You're choosing to believe that he's on lower than what's been reported. I wouldn't be surprised to see him on much higher. Also it's reported as after tax which OP isn't taking into account when referencing all those other players.

All of you reporting this low figures are guessing as much as the media. Credible source would be nice so put it to bed.

Either way he's the highest paid pl player ever, so whatever it is, it's stupid money.

Because the 500k a week number came from a paper that suddenly upped it to 600k a week once he signed. they also didn't take into account that base salary is excluding image rights and signing on fee. we briefed yesterday that his base salary is ~£300/350k.

So you are paying him around £500k then.

and the salaries in the op should duly be inflated then. because wages are never mixed with signing on fee's or image rights.

 

[Jacko21]

How do you know he's on 350? You're choosing to believe that he's on lower than what's been reported. I wouldn't be surprised to see him on much higher. Also it's reported as after tax which OP isn't taking into account when referencing all those other players.

All of you reporting this low figures are guessing as much as the media. Credible source would be nice so put it to bed.

Either way he's the highest paid pl player ever, so whatever it is, it's stupid money.

And if Sanchez contributes to United's success in the league and Champions League, then it's entirely worth it.

United are one of very few clubs in the world that can absorb the cost of such deals.

Every transfer presents some element of risk.

 

[Nevilles.Wear.Prada]

Some of you caftards worry so much about wage and agent fees more than my penny pinching bosses. Damn it, its not your money. Its about time they spend all the money they make to improve club assets to stay competitive anyways. Move on zzz

 

[theyneverlearn]

So you are paying him around £500k then.

Over the course of the transfer we are, which is a great deal when you look at what other teams pay players of similar quality. With no transfer fee, we were able to put together a better package for him, which is more than manageable for the worlds richest team.

 

[davidmichael]

If you deduct Mkhitaryan’s wages of reportedly £150K a week and the fact that most respected journalists have said Sanchez is on £300K a week which is said to be on par with Pogba then it’s £150K a week which over 4 and a half years is £35.1 million, then add the £10 million signing on fee for Sanchez and £15 million agents fee then you have £60.1 million as total which is an unreal piece of business by the club.

Even if Sanchez is on £350K a week then that’s another £11.7 million over 4 and a half years so at a maximum the total is £71.8 million and that’s still an unreal bit of business by the club for a world class player, it’s amazing though that we’re the only club in the world that the wages and agents fees/signing on fee ever gets talked about which screams of jealousy.

 

[pacifictheme]

15m to agent? That fat feck. If he was not agent he would have been a pimp.

His agent isn't raoila.

 

[mitchmouse]

• Neymar - £200m + £660K a week (Pre tax) on 5 Year contract = £200m +172m in wages = £372m overall
• Coutinho - £140m + £240K a week (Pre Tax) on 5 year contract = £200m +63m = £263m Overall
• Dembele = £135.5m + 220K a week (Pre tax) on 5 year contract = 135.5m + 57m = £192.5m overall
• Pogba = £89.3m + 200K a week (pre tax) on a 5 year contract = £89.3m + 52m = £141m overall
• Van Dijk - £75m + 180K a week (Pre tax) on 5 year contract = £75m + 47m = £122m overall
• Sanchez = £0 + £10m signing on fee, £15m to agent, £350k a week wages on a 4.5 year contract = 25m + 82m = £107m overall

So I was on the tube, and saw at least 3 papers describing the Sanchez transfer as monstrous, taking his salary into account, agents fees when none of this shit ever gets mentioned with other transfers.

So putting his transfer into context.. I haven't even put it into context such as the fact we save money on Mkhi's wages, nor have I been able to locate exact details relating to agent's fees etc for these other transfers or other bonuses but feel free to make amends to the figures used in my OP. Neymar's overall transfer was touted to be in region of £450m - but I am not sure how they reached this figure for example.. need more info.

But the bottom line is, signing a genuine star in Sanchez, a guy who will be the jewel in our attack and our main man for the money we did - is for my money, considering that he is playing for a historically ferocious rival for the money we did.. is an absolute bargain.

The narrative in the media about the fee is a fecking joke it really is. Sanchez salary is a touch overpriced, but does he deserve more wages than a Coutinho? feck yes, he's a main attacker for a side not just a playmaker support act. Secondly he's a sure thing, not a risk or a developing player like a Dembele and you're getting him on a free transfer effectively and you're trying to beat a rival like City to his signature. I'd say taking that all into account £300k would probably be a very fair price in this current inflated market.

Anyway feel free to add any further details, comparisons, thoughts.

whenever the papers don't know the actual fee/it's swop deal/free transfer, they just guess the salary. I'd like just one of the sports writers to tell us just how he knows what Sanchez is being paid. he doesn't.. he's guessed, doubled it, added three and divided by his favourite number

 

[Smores]

How do you know he's on 350? You're choosing to believe that he's on lower than what's been reported. I wouldn't be surprised to see him on much higher. Also it's reported as after tax which OP isn't taking into account when referencing all those other players.

All of you reporting this low figures are guessing as much as the media. Credible source would be nice so put it to bed.

Either way he's the highest paid pl player ever, so whatever it is, it's stupid money.

The papers have u-turned since the announcement as the club briefed them it was more like 350k. That's not after tax either, it's never reported after tax.

To be honest who cares, we swapped a player we don't want for one we do. Our wage bill goes up reflecting the higher quality of player and we've paid a small fee. People can throw around whatever numbers but cost benefit are on our side here.

 

[Zlatattack]

Honestly who cares? Or club earns the money, we'll spend it how we see fit.

 

[United Pro]

So you are paying him around £500k then.

The £500k includes the image rights and signing on bonus spread out over Sanchez's contract to the base salary. I guess you can say Sanchez is on £500k a week, but then you can't say we gave him a signing on bonus on top of that. Otherwise, it's £350k a week+signing on bonus+image rights.

 

[Raees]

The £500k includes the image rights and signing on bonus spread out over Sanchez's contract to the base salary. I guess you can say Sanchez is on £500k a week, but then you can't say we gave him a signing on bonus on top of that. Otherwise, it's £350k a week+signing on bonus+image rights.

How many player's get their image rights referred to when we are trying to work out what they are paid..

Not saying that money shouldn't be included, but if we are including these figures for Sanchez, we need to do it across the board too.

 

[Antonedwin]

You need to add the transfer fee. Mkhi with 3 years remaining on his contract would have gone for at least 40m in the summer under the current market conditions.

Also, all those are young players with a resale value. Don't think Sanchez would have much value when his contract finishes.

Who is going to buy 28 years old player who can't even get into our match day squad for 40m ? Name me a team

 

[Nanook]

Why would his agent get a larger fee than his sign on fee?