you are mixing drinks there. depreciation is not cash flow. Depreciation is writing down the value against tax each year. You still have to meet whatever payments you've agreed wit h the selling club in hard cash. what is happening (dear tobes) 1. player is capitalised onto the balance sheet as an asset 80mil for nunez (round it off) 2. asset value is written down over course of contract. 6year contract right? thats 13.3 mil per year 3. it is the amortisation in each year that has the impact on FFP. 13.3mil per year every year for next 6. Say you are Benfica not LFC. Benifca would put nunez on the books 2 years ago at 35 mil. so they have therefore written down lets say 2 years of 5 or 14mil. They have now sold him for 80mil (again lets forget the addons for simplicity) at the time of sale nunez is on the books as 21mil for benfica and they get 80 so their profit is 59mil this is all passing money around the place and having the annual write down. none of this changes the fact that hard cash has to change hands at the transfer and to have the hard cash in hand you've got to do what? Sell players to get csh, make profits and hold them or take out loans. these will go on the profit and loss account. LFC Books: https://www.liverpoolfc.com/corporate/financial-information however this particular transfer is being funded the important thing about amortisation is the balance sheet as tobes explained it. (see LFC below) the players are in Intangible assets. so we have 218mil of these. And as some contracts age this number goes down and as new players sign it goes up. Net Asses minus the current liabilities and then minus future liabilities etc = 199,240 for LFC and the shareholders capital and reserves need to meet that. however cashflow is here guess what, proceeds from sales and acquisitions are showing up here too. Cash flow is also a snap shot in time. The interesting things that FFP went after was the wages which operates differently and is easier attack and these profit/losses. ........................................ now work mane out. After we making a LOSS of 4mil by selling him for 30mil or are we making a massive 30mil profit as he's been already written down over time.
Indeed, it’s amortised, my mistake. still doesn’t make player sales equate to player purchases though….although it’s likely that we will receive the payments in staged financial years, giving us profits on the sale for a few years ahead.
Let's face it, it's all guesswork on the part of us fans. How many saw us signing a forward on a huge fee? I have a feeling that Klopp and his staff are going to be backed by the owners this window and if Klopp wants a young, mobile established midfielder, he will get him.
Maddock reporting that medical started at 11am this morning, expected to last well into the afternoon. No announcement today, maybe tomorrow but technically not until 1 July when Portuguese window opens.
however its done i think its interesting that we will declare a 30mil profit on Mane once he goes as he would have been written down over this contract already (on second deal?) so even though 6 years ago we paid 34mil for him its now pure gravy. Thanks to Tobes for this. such a terrible thing he's not here to put us right.
before or after mane dropped his amber herd moment? I would have thought about 2 weeks prior to CL final we had diaz and that was that but once mane kicked off something had to be done i suppose. I think its a good deal. a lot of improvement in him and the ideal place to make it.
Klopp will have been aware of Mané's intentions long before the CL final just like he will be aware of Salah and Bobby's. It's funny that while Klopp and Salah were being asked practically all season about the contract extension, it's Mané who has flown under the radar.
Origi, Mini, Mane... Lots of rumours of Ox leaving. Neco Williams leaving. That's five. Have I missed any? And that's if Salah doesn't leave. Incoming we have probably Darwin. Probably Calvin Ramsey. And Fabio Carvalho. That's five out and three in... Although we got Diaz in winter which evens it out a bit if we consider him. I do think (and hope) there's another midfielder coming in. Won't be Tchouameni... And sounds like won't be Gavi(n) anymore.
tbf you might as well say what is the point in discussing our style of play or particular tactics / players .
Really demonstrates the improvement in Klopp's penmanship. He makes much cleaner lines with his pens than he used to. Either that or Germany uses inferior ink.
