AC Milan Forums - Unofficial

Full Version: Summer Mercato 2019
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544
(03-11-2019, 04:34 PM)nefremo Wrote: [ -> ]Nah. Let him go for the 40mil cash release clause. That money will go a long way in getting a replacement in...but moreso then that, it will give us basically a 40mil capital gain to beef up our books since we got Suso for 1mil from Liverpool and the cost is completepy amortized by now.

40mil gain from Suso + the projected 50mil (at least) from CL participation. That's HUGE in terms of our books, basically increasing our revenue (ceiling) 100mil in 1 year.. We could easily go on a 200mil spending spree this summer and still stay in the green (for next year at least).

Yep.  Helps our FFP case
(03-11-2019, 04:34 PM)nefremo Wrote: [ -> ]Nah. Let him go for the 40mil cash release clause. That money will go a long way in getting a replacement in...but moreso then that, it will give us basically a 40mil capital gain to beef up our books since we got Suso for 1mil from Liverpool and the cost is completepy amortized by now.

40mil gain from Suso + the projected 50mil (at least) from CL participation. That's HUGE in terms of our books, basically increasing our revenue (ceiling) 100mil in 1 year.. We could easily go on a 200mil spending spree this summer and still stay in the green (for next year at least).

Suppose we do sell Suso at 40m (38m to be exact, I believe), do we get all in one lump sum? or, by installments? 

Is there any rule saying that if release clause is triggered, it has to be in one payment?
It won't affect FFP, because any thing we pay for other players can be spread for FFP, even if we pay in one lump sum. If that' is what you are calculating. Revenue numbers will not show it directly but for FFP purposes it will work.
Figured this would be appropriate for this thread

https://twitter.com/Susolista8/status/11...32896?s=19

I'm still not against selling him as long as we upgrade but that's interesting nonetheless
(03-11-2019, 06:05 PM)AC_Troy Wrote: [ -> ]Figured this would be appropriate for this thread

https://twitter.com/Susolista8/status/11...32896?s=19

I'm still not against selling him as long as we upgrade but that's interesting nonetheless

That is  interesting. As i said, I have no problem at all with his being one-trick pony, because when it works, it can work quite well.
It is his seemingly lack of motivation that bothers me more.
(03-11-2019, 05:51 PM)reza Wrote: [ -> ]It won't affect FFP, because any thing we pay for other players can be spread for FFP, even if we pay in one lump sum. If that' is what you are calculating. Revenue numbers will not show it directly but for FFP purposes it will work.

My question is: if we receive 38 m in one lump sum, all 38m should count as next year's capital gain. if we receive 38 m in 4 installments, 10 m each year, it won't help our next year's financial statement as significantly. 

I seem to recall having read some cases in which a release clause is evoked, then not only full amount needs to be paid off right away, there would also be an additional administrative (punitive) fee for termination of a contract. I believe it happened in Spain a few seasons back, but forgot the details. That's why it only happened between clubs that really don't like each other. Otherwise, they would just agree on a "transfer" fee that is equal to the release clause, but avoid paying other fee (the selling club won't get that amount anyway. it usually goes to the association.)
(03-11-2019, 06:10 PM)xudong Wrote: [ -> ]My question is: if we receive 38 m in one lump sum, all 38m should count as next year's capital gain. if we receive 38 m in 4 installments, 10 m each year, it won't help our next year's financial statement as significantly. 

No matter what, if we sell Suso this year, the entire amount he is sold for will show up as a capital gain this summer. Payments can be spread over 4 year as you said (10mil per year), but it doesn't matter.
Revenue (based on accrual basis of accounting) and cash is quite different. The revenue (not really revenue from operations as this will be a capital gain from player sales, but nonetheless it serves the same purpose when it comes to FFP) will be recognized when the player is sold. The cash may, or may not, come right away.

Basically, here is the entry on the books if we sell Suso for a lump sum of 40M:

Cash.............................40mil (cash received)
Accum Amort.................1mil (reversing amount of Asset(Suso) amortized)
Asset (Suso)..................................1mil (amount we paid for Suso)
Gain on Sale..................................40mil (Part that will beef up our bottom line. Or Revenue, if you wanna think of it that way)

Here is the entry on the books if we sell Suso for 10mil cash, plus 3 other installments of 10mil each

Cash...........................10mil
Accts Receivable..........30mil
Accum Amort...............1mil
Asset (Suso)............................1mil
Gain on Sale............................40mil

As you can see, in both cases, we will record a gain of 40 million at the time of sale (assuming that Suso is currently worth zero on the books since his cost was fully amortized which I believe it is). When we receive the cash is irrelevant.
I feel like I am taking an accounting course. Grinundwech
(03-11-2019, 04:34 PM)nefremo Wrote: [ -> ]Nah. Let him go for the 40mil cash release clause. That money will go a long way in getting a replacement in...but moreso then that, it will give us basically a 40mil capital gain to beef up our books since we got Suso for 1mil from Liverpool and the cost is completepy amortized by now.

40mil gain from Suso + the projected 50mil (at least) from CL participation. That's HUGE in terms of our books, basically increasing our revenue (ceiling) 100mil in 1 year.. We could easily go on a 200mil spending spree this summer and still stay in the green (for next year at least).

Yes Suso going for 40 mil could be good business. The 40 mil plus another 20-30 mil and Milan could get Nicolas Pepe who would be a huge upgrade over Suso.
(03-11-2019, 09:26 PM)xudong Wrote: [ -> ]I feel like I am taking an accounting course. Grinundwech

If you read that, then you did  Devilol Devilol 
Was just trying to answer the question and got lost somewhere out there  Devilol
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544