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Summer transfer window 2017 - Printable Version

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RE: Summer transfer window 2017 - donlocatelli - 03-30-2017

really interesting article on milannews talking about how the 100-150m mercato budget would work (direct translation from italian)...

"The summer market : "It promises to be an interesting scenario. Mirabelli in recent months turned on half fields Europe and has a collaborative agreement. The market budget, which I was told directly from the sources that are buying AC Milan, should swing between 100 and 150 million Euros. Here, however, makes a distinction between the balance sheet and cash account. This means that, for example, if Milan take Aubameyang to 80 million euro divided in 4 installments of 20 million the one and giving 4 million a year to the player, the attacker would cost 24 million of the 150 million in the market. I know for a fact that Kolasinac is one of the names blocked by Mirabelli and expects closing the word more than any higher."

this approach seems great and explains how milan could sign 3-4 top players this summer alone. this is also what inter's been doing for years to rebuild their squad (deferred payments).

using the aubameyang example above, if our total summer mercato budget was 100m, we could sign 4 champions costing 80m each with 4m wages as long as the payments were spread over 4 years (total cost 96m).

obviously we would owe 96m for each of the next 3 years, however, signing champions would increase our chances of reaching the lucrative cl group stages as well as increased sponsorship, merchandising, tv and matchday revenues (home and abroad). so this additional money could be used to increase the mercato budget for future years. player sales would also add to the mercato budget.

in theory, this summer we could sign belotti (60m), bernardeschi (60m), champion midfielder (60m), promising young midfielder (tielemans/pellegrini 20m) and quality cb (musacchio/de vrij 20m) and providing we paid everybody 3m wages (just to make calculations easier) and deferred payments over 4 years our total summer mercato would cost (60+60+60+20m+20m+5*3)/4 = 58.75m or 78.33m if payments are spread over 3 years!

renewing donna, des, suso + signing kolasinac for free would probably only cost 7m total to the mercato budget as donna, des + suso's existing wages are already budgeted for. only the salary increase + kolasinac's entire wages would come out of the summer budget. however, selling fodder players would get wages off the books which should offset the salary increases and new player wages.

if this is what they're planning then i'm expecting a huge mercato!

also, elliott the hedge fund which bankrolled yonghong li have put a clause stating we can't devalue our assets. in other words, we can't sell players to repay the loan like donna and if we sell a player then somebody of the same/higher value must be bought. so if we sell des then the replacement would have to be of the same quality e.g. darmian/conti.


RE: Summer transfer window 2017 - millinarios - 03-30-2017

Interesting. Too bad I don't believe the 100M or so mercato...


RE: Summer transfer window 2017 - donlocatelli - 03-30-2017

(03-30-2017, 06:58 PM)millinarios Wrote: Interesting. Too bad I don't believe the 100M or so mercato...
we will see. don't forget berlusconi inserted a clause upon selling whereby ses had to invest 350m on transfers within 3 years. in the scenario i mentioned where we could potentially sign belotti, bernardeschi, a champion mid, pellegrini + musacchio there'd still be 115m+ leftover.

also, elliot said we can't devalue our assets and surely wouldn't lend 300m unless we were planning to significantly improve the teams future.

anyway, we have to spend 100/150m as inter are planning to spend the same, juve will buy verratti for 80m, napoli will continue to invest the higuain/cl money and roma just hired the best sporting director in the world monchi. if we don't invest heavily we'll get left behind and can forget cl.


RE: Summer transfer window 2017 - nefremo - 03-30-2017

Don't believe so much in Berlusconi's "clauses". He also promised to the fans to sell the club to buyers that had significant financial resources (or at least resources they could freely use for Milan) yet he is selling to a group (or an individual as we don't even know yet) that has struggled to get funds together. Why? Because that's the way Berlu is going to pocket the most money possible since that's who gave him the biggest valuation.

Having said all that, I do believe that we will spend a significant amount this summer. Not sure what kind of players we will be able to get though. I am more worried about the future as I can see use end up being sold again in a couple of years.


RE: Summer transfer window 2017 - porcho - 03-30-2017

(03-30-2017, 06:42 PM)donlocatelli Wrote: this approach seems great and explains how milan could sign 3-4 top players this summer alone. this is also what inter's been doing for years to rebuild their squad (deferred payments).

using the aubameyang example above, if our total summer mercato budget was 100m, we could sign 4 champions costing 80m each with 4m wages as long as the payments were spread over 4 years (total cost 96m).

in theory, this summer we could sign belotti (60m), bernardeschi (60m), champion midfielder (60m), promising young midfielder (tielemans/pellegrini 20m) and quality cb (musacchio/de vrij 20m) and providing we paid everybody 3m wages (just to make calculations easier) and deferred payments over 4 years our total summer mercato would cost (60+60+60+20m+20m+5*3)/4 = 58.75m or 78.33m if payments are spread over 3 years!
The problem with this theory is we're likely to overspend on players as a result...
Torino might well take 45-50 if we offered outright money but would only consider 60+ if we did it with deferred payments. 
same goes for someone like Tielemans... Why would Anderlecht accept 20-25 from us with deferred payments if a prem league club could swoop in and offer 30 outright without thinking twice. 
De Vrij is out... Chelsea is seriously looking at him and wanting to spend up to 50mill to get him... 
I would rather us fix problem areas 1st season and spend on bigger names the next season.


RE: Summer transfer window 2017 - WCmilan - 03-31-2017

Payments in installments does usually mean overpaying besides the odd case (Ibrahimovic). I don't have an issue with it if it means building a stronger squad a lot faster.


RE: Summer transfer window 2017 - nefremo - 03-31-2017

I don't know how much of a problem installments are. As far as I know, most transfers are made on installments. I don't think there are many transfers that happen in one single sum. It's pretty rare...


RE: Summer transfer window 2017 - porcho - 03-31-2017

(03-31-2017, 03:02 AM)nefremo Wrote: I don't know how much of a problem installments are. As far as I know, most transfers are made on installments. I don't think there are many transfers that happen in one single sum. It's pretty rare...

But they're usually in quick succession... In This case we're talking over years... 
Look at Torino for example... It would be better to sell for $40 and get the $$ now to spend on a replacement or help strengthen other parts of the team vs 60 over 3 years and they'll only have 20 to spend instantly. Less important for bigger teams, more important for smaller teams...
For bigger teams, as long as it's over 3 years, they'd be happy because of the FIFA FFP... which is a load of crap anyway but that's another discussion


RE: Summer transfer window 2017 - donlocatelli - 03-31-2017

(03-30-2017, 10:40 PM)porcho Wrote: The problem with this theory is we're likely to overspend on players as a result...
Torino might well take 45-50 if we offered outright money but would only consider 60+ if we did it with deferred payments. 
same goes for someone like Tielemans... Why would Anderlecht accept 20-25 from us with deferred payments if a prem league club could swoop in and offer 30 outright without thinking twice. 
De Vrij is out... Chelsea is seriously looking at him and wanting to spend up to 50mill to get him... 
I would rather us fix problem areas 1st season and spend on bigger names the next season.
i don't think this is a problem as the vast majority of non-epl transfers are structured as deferred payments. its beneficial for both clubs because of ffp but also so they have guaranteed cash flows for future years. although there's a premium to pay for deferred payments, i don't think its as large as you believe. e.g. inter signed miranda for 15m, brozovic 8m and perisic 16m all via deferred payments. mirabelli was the head of scouting then so can hopefully pull off similar deals here.


RE: Summer transfer window 2017 - am I Milan enough? - 04-01-2017

Sporting Director Monchi is set to join Roma.