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General Premier League Thread 2022-23 - mod note in OP 12/03/23

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Comments

  • Posts: 45,738 ✭✭✭✭ [Deleted User]




  • Registered Users, Registered Users 2 Posts: 7,472 ✭✭✭theoneeyedman


    Clear as day both Gordon and Caicedo have been 'tapped up' to some extent, both effectively forcing the moves by downing tools. There clearly is some contact between the buying clubs about possible personal terms and what's on (or under) the table - it's obvious. Indeed, it would be silly for buying clubs to put an offer together and approach the 'selling' club without knowing the player was open to the move and that they could make the numbers work.



  • Registered Users, Registered Users 2 Posts: 10,033 ✭✭✭✭johnnyryan89


    Aren't they allowed talk to the players representatives but not the players themselves. You often see reported that terms have been agreed between buying club and player before a bids accepted.



  • Registered Users, Registered Users 2 Posts: 22,440 ✭✭✭✭Mushy


    I think clubs have to agree to that bit. Don't have to have fees agreed, or even have started talking about fees, just essentially be open to selling the player to the buying club. Long gone are the days it was buying club approaches selling club and only when that was agreed did personal terms start being discussed.



  • Registered Users, Registered Users 2 Posts: 7,054 ✭✭✭wanderer100


    Roberto de Zerbi, what a job he's doing with Brighton. Deserves a lot more praise imo

    Mitoma has been quality recently. If he keeps up this form, Brighton will be cashing in another 50-100m soon



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  • Registered Users, Registered Users 2, Paid Member Posts: 20,226 ✭✭✭✭y0ssar1an22


    only a matter of time now that bigger clubs start hijacking their deals cos they are near flawless in the transfer market.



  • Registered Users, Registered Users 2 Posts: 16,869 ✭✭✭✭Fitz*


    Not yet, I don't think.


    Brighton have been brilliant the last few seasons in terms of recruitment. They mostly have plans in place to pre-emptively have replacements within the squad to use when they sell players. Their owner is a big gambler and has a model which he was able to replicate for recruitment. But Brighton also have a few big advantages over the bigger clubs when it comes to recruitment, even with a lower spending capacity.

    Time, expectation & risk.

    Brighton have the capacity to buy a couple of unknown wingers in a summer window with low expectations. They will be given time to adjust to the league, settle in the new country & culture etc. Brighton can build a development plan for them, which might last 12/18/24 months before they are fully first team ready. Like in the case of Mitoma who is only now starting for the club regularly after joining in 2021. He only started 2 games for Brighton before the WC. They were patient with him, gave him a good loan deal with a development pathway, and then gradually brought him into their own first team this season, before he exploded in January. Conveniently at the same time that Trossard was acting up and forcing his way out of the club. If Mitoma had a ban loan last season or had not settled in England in 2022, they could probably have sold him to some other club in Europe for around a €1m loss or maybe even break even. Not the biggest mistake in the world. It happens, and they move on. it's possible that maybe the other winger they bought in that summer of 2021 had a much better loan and would be pulling up trees in the PL now. So overall the transfer strategy paid off as they have a great winger on their hands. Nobody would really be talking about Mitoma as the transfer was under the radar, very low fee and nobody would have noticed if he was passed on again. Brighton actually signed another winger this season again, and again there is low expectation and he has been given his loan move to develop and time to grow. He might grow, he might not. But he will play lots of games to give him the best opportunity to grow and they will see how it works out in a years time and re-assess.

    Compare that to the 'bigger' clubs who sign a player, and usually for a much larger fee. There is an expectation that the player hits the ground running and settles quickly. And because they are more experienced in the top leagues, the fee is higher. They know their way around the game and different attributes needed for different scenarios. That's what you're paying for. There's an anecdote that Liverpool were happy to let VVD go from Celtic to Southampton for £12.5m as they wanted to see how he would fare out in stepping up in class before taking the plunge. There was a scout note that he switched off at times at Celtic as he was too comfortable playing there - ie the best in the league and so got bored and went for a big run forward to make the game less boring. He ironed this out at Southampton and so Liverpool were happy to pay the larger £50m fee that summer (obvs that transfer didn't go through that summer and fee increased). They signed the better version of VVD, not the version that they had to develop first. On the other hand, 'New £70m signing' has not scored in his first 3 games is the type of stuff that comes up very quickly. He has to be a world beater, instantly. He can't go on loan to develop over 18 or 24 months. He can't spend a few months making sub appearances and cup appearances. He needs to justify the outlay. He needs to contribute to winning games and trophies instantly. Players at the bigger clubs get written off as a waste of money very quickly.

    The PL is very cut throat now, you have to be winning. There is no time or allowances given. Managers get sacked after a poor month. Transfers have to be made with this in mind. You need to win a trophy, avoid relegation, get top 4 or get sacked. In the era of multiple sportswashing clubs and other clubs spending over €600m in one season, everything needs to be instant. Liverpool signed 3 players in the summer - 2 are teenagers that they are trying to develop into better players. In addition to 2 other teenage midfielders playing regularly. They are 9th in the table. The league is leaving them behind as Arsenal, Man Utd etc spend €180m to €240m on established players. Why established? The need for instant success and break into the top 4. They're not signing players from down the divisions and trying to nurture them. They might have 1 project player, but that's the height of it. It's not 5,6,7 players at the same time. There's too much risk. An over-exuberant inexperienced full back can make a mistake at the end of a game, concede and drop points. Zinchenko or Casemiro don't do that.



  • Registered Users, Registered Users 2 Posts: 12,278 ✭✭✭✭OmegaGene


    Bbc :- Chelsea have bid 120m euros (£105.6m) for Benfica's Argentina midfielder Enzo Fernandez in a move that would make him the British transfer record signing. 

    So far there is no indication whether the Blues' offer, thought to include instalments, will be accepted.

    The internet isn’t for everyone



  • Registered Users, Registered Users 2 Posts: 7,472 ✭✭✭theoneeyedman


    Release clause was 100m Euro, they supposedly paid 120 to pay in installments 🙄.

    More shenanigans if you ask me, but what do I know.......

    In other news Dyche takes over at Everton great opportunity for him, they are sh1te but still only 3 points away from 14th,so not beyond hope by any means.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    That's how they're going around ffp... they're spreading most of this massive spending over the next 7 or 8 years with the long contracts they've tied their players too. Which is grand - as long as the signings all work out and they don't need to buy any new players for a really long time!

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  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    There's nothing grand about, complete corruption. Are they the only club with this dodgy scheming?


    They paid 70 million euro to Shaktar for Mudryk for example. Shaktar got the 70 million in their bank account yet Chelsea are able to claim that they are paying the 70 million in installments over 8 years. Utter corruption and I'm told the FFP authorities are trying to close the loophole to prevent this corruption in future transfers.



  • Registered Users, Registered Users 2 Posts: 7,472 ✭✭✭theoneeyedman


    These sort of shenanigans have caused huge problems in Italy, including Juve being docked 15 points lase week.

    I'd be very suspicious of any scheme moving money out of Chelsea to foreign climes at the moment, especially money that's ending up in Eastern Europe. Without any evidence obviously, but seems like a scheme to repatriate some of Roman's money back to the motherland to me - could be wrong, and apologies to Roman and Todd if I am, but it all seems dodgy as hell to me.



  • Registered Users, Registered Users 2 Posts: 687 ✭✭✭joeyboy11


    Screaming corruption is abit dramatic. Amortisation is how assets are accounted for in the books of any business.

    They are taking a risk. If the signings work out then they are golden. If not they are stuck paying big wages to a dud for nearly a decade.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    I know what you mean, but the Mudryk/Shakhtar/Ukraine deal definitely won't see any of that money going to Roman. Shakhtar's owner is staunchly Ukrainian, and anti-Russian. He's giving tonnes of money to the war effort against Russia, and undermining Russian interests wherever he can. He also owns the Azov steel plant that was a major holdout, getting bombarded by Russians for weeks on end a while back.

    Shakhtar is like a beacon of 'Ukrainian-ness' over there right now. Was quite a good podcast series on the club's status during the war on The Athletic, with really good access right in the heart of things.

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  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    Can you explain how Shaktar received 70 million euros up front for Mudryk but Chelsea in their financial presentation will say they only paid around 8 million euro IIRC for Mudryk for the current financial yearly returns can be described as anything other than corrupt? It's not being "dramatic" to describe something for what it is.


    They have cynically exploited a loophole that the authorities are now trying to close.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    It's just amortisation though... that's normal in accountancy. You buy an asset, with the value of that asset stretched over the life of its use. It's the same if your company buys a building.

    It's not like it really lets them get away with much, it just creates a new problem, as if you have a rake of players with all these amortisations stacked up, you have no wiggle room down the line. It's a massive gamble.

    And UEFA aren't 'closing the loophole', they're just officially bringing amortisation in league with European standards so contracts can be amortised over a max of 5 years, which is the legal contract length in Europe (which of course Britain are no longer a part of - hince their recent longer contract lengths). It wasn't necessary to codify before Britain left the EU.

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  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    You don't seem to be reading my post correctly or understanding the post. If Shakhtar got 70 million euros up front and Chelsea are claiming that they only paid 9 million for the player this year then there's obviously something up, you do understand that?



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    Oh no, I understand. It's simply that that's not how accountancy works.

    This is not a Chelsea thing you're complaining about, it's just an accountancy thing. Every club reports their accounts the same way. Your asset costs are spread over their lifespan. That's just how it works. They're not claiming they only paid 9 million, they're just reporting the % of the lifespan that is due for this year.

    The 'loophole closing' is not actually a closing, it's just UEFA codifying that the max something can be amortised over is 5 years (as was always the case per european law till Brexit occurred and Britain removed that contract limit for domestic contracts). So once the rule is changed, Chelsea will be saying 14m instead 9. Either way, they won't be saying 70.

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  • Registered Users, Registered Users 2, Paid Member Posts: 20,226 ✭✭✭✭y0ssar1an22


    the project players, i think teams will look to who brighton are looking at and take a punt at 5m or whatever. prob +5 mil for the bigger teams.

    i also expect teams now selling to brighton to demand a higher transfer fee or a fat sell on percentage.



  • Registered Users, Registered Users 2 Posts: 687 ✭✭✭joeyboy11


    I've no problem with you disagreeing with the practice. UEFA also don't like it and are going to implement a rule limiting the amortisation of transfer fees to 5 years.

    For now it's a legitimate although risky strategy that they are entitled to go for if they please without it being labelled as corruption.



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  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    Yes. They are saying they paid 9 million but they actually paid the 70 million up front and then there's add ons after it. They are lying in order to get around the FFP guidelines.



  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    In amortisation the seller gets paid in intalments. That doesn't appear to be the case in this Mudryk transfer. That to me appears to be corrupt.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    That's awfully dramatic... they're not lying, they're just following completely normal accountancy practices - the same accountancy practices everyone else is doing. It doesn't matter if you pay in instalments, or you pay it all up front, the value of the asset gets reported over its term.

    The only difference here is that Chelsea are offering much longer contract lengths to spread it over, which was limited to 5 years prior to Brexit.

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  • Registered Users, Registered Users 2 Posts: 687 ✭✭✭joeyboy11


    I think you're getting your wires crossed. Chelsea aren't lying about payments.

    Ffp is based on financial accounts and when a business acquires an asset it is expensed over the lifespan of the asset (in this case a contract) regardless of what you actually pay in cash.

    UEFA know Chelsea paid all the fee upfront. There are no lies or corruption going on.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    Ah ok, here's where the confusion is coming in - that's not what amortisation is. It has nothing to do with your payment structure. It is purely your own reporting of your own assets, completely removed from how you paid for them.

    here's a little stolen business blurb of what amortisation is;

    "When businesses amortize expenses over time, they help tie the cost of using an asset to the revenues that it generates in the same accounting period, in accordance with generally accepted accounting principles (GAAP). For example, a company benefits from the use of a long-term asset over a number of years. Thus, it writes off the expense incrementally over the useful life of that asset."

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  • Registered Users, Registered Users 2 Posts: 687 ✭✭✭joeyboy11


    Yea it's an easy mistake to make. I know this through work so can easily get my head around it all.

    I'd be curious to see the cashflow statements after the last two windows. No idea if clubs release those!



  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    No. I think this is where you are still confused. I repeat; In amortisation the seller gets paid in instalments, they'd be getting roughly 9 million a year over the next 8 years. However it appears Shakhtar got 70 million up front for Mudryk.



  • Registered Users, Registered Users 2 Posts: 29,952 ✭✭✭✭TitianGerm


    Quite frankly you haven't a clue what you're talking about.

    To dumb it down for you, there are two main statements in a set of accounts Balance Sheet (snap shot of the business on any given day) and P&L (revenues and expenses from the start of the financial year to the date they are produced).

    Balance Sheet shows Assets (buildings, debtors, bank balances stock etc) and Liabilities (loans, creditors, etc).

    I buy a building for 100. My bank drops 100 and my buildings increase by 100. No effect on the P&L so far.

    Now we're told the building will last for 100 years so after this it'll be worth zero. Therefore each year you reduce your buildings by 1 and have a depreciation expense of 1.

    So in the case of Chelsea and Shaktar the following happens.

    Chelsea pays 70m to Shaktar and add a new asset (the player). Chelsea's bank is 70m lower and the player assets are 70m higher.

    At the end of year one Chelsea amortise 10m of the player value assuming it's a 7 year contract. That leaves 60m of a player asset and an amortization expense on the P&L of 10m in year one. This continues over the life of the contract until the player is written off the books.

    If he breaks his back in year two then Chelsea will have to expense 60m in year two as the player asset is no longer available.



  • Registered Users, Registered Users 2, Paid Member Posts: 35,108 ✭✭✭✭~Rebel~


    I think you might be mixing up loan repayment amortisation with asset amortisation. In asset amortisation (which is the case here) there is absolutely no requirement that the seller gets paid in instalments.

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  • Registered Users, Registered Users 2 Posts: 9,881 ✭✭✭TheCitizen


    Right fair enough I can see what you're saying and I may have been grabbing the wrong end of the stick. Still they're signing up Mudryk, Nkunku and possibly Fernandez for about 260 million euros. They're getting around FFP by putting them on long term contracts of 8 years or more. UEFA are adjusting the rules to stop them and others doing it again. I hope it blows up in their faces and destroys them.



This discussion has been closed.
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