A lot has been said about Leeds United players with relegation loan clauses in their contracts, most of it negative bull peddled by Leeds-hating media and social media trolls designed to divide the club and thwart a promotion campaign ... what has been surprising, and very disappointing, is Denial Farke jumping on the bandwagon and using it as an excuse before the season's fkn started So let's have a look at why the relegation loan clauses exist Yes, it can be a good thing for players as it gives them the opportunity to continue to play at a higher level, especially good if they are internationals wanting to get into national squads for tournaments ... nothing wrong with that at all, even if it means Leeds lose them for a season at least Now let's look at it from the club's point of view ... the first issue Leeds had to confront upon relegation was loss of revenue, a minimum of £50m that creates financial problems immediately The second issue is around player values and FFP, and let's be clear that FFP in the EFL is a very real threat that needs to be taken care of ... this means that simply selling off players isn't actually an option ... yes, it sounds crazy but there's a reason for this, AMORTISATION I'll try and explain it using Aaronson as an example ... Leeds signed Aaronson for £25m on a five year contract ... his value is amortised over the five years a £5m loss in value a season ... if after one season Leeds sell him for £15m because his value has dropped because of relegation, there's a £10m loss that goes against FFP, so better to loan him and only show a £5m amortised loss So let's say Aaronson stays out on loan for a second season, Leeds show another £5m loss and his value drops to £15m on the books ... Aaronson has a great season and Union Berlin make it to Champions League ... now they have money and decide to buy Aaronson for £30m to keep him as part of their squad ... now Leeds have a £15m profit to go against FFP and it's all good ... if Aaronson didn't do that well on loan and Leeds sold him for £15m, then at least the books are balanced The good thing about a loan clause is it helps to get the player's wages off the books, so a player on £50k a week will save the club around £2m that season, a fair chunk towards FFP Add on a loan fee of £1m on (a very low) average per player per season and suddenly eight loans turns into at least £24m towards FFP ... how on earth is this bad business for a relegated club needing to cut it's cloth accordingly? Yes, it can interfere with sorting the squad out, but you can only loan out or sell players that other clubs actually want or are willing to pay the asking price for ... Leeds lost a lot of bargaining power once relegated, and the loans actually helps the club to get wages off the books without losing money on selling players below value Leeds don't actually need the hard cash in the bank for player sales that come with a big loss in value, they need the smaller amortised losses to help towards FFP ... it may sound silly, but this is how I understand it If there's an accounting brain out there who wants to do a deeper dive into FFP and it's rules, please do
No I don't ... I want him to succeed, I was pleased when Leeds signed him and I back him ... I'm just very concerned with how he's changed so much so quickly ... he never behaved this way in his previous roles, why now? All this constant negativity from him is not helpful, I want him to concentrate on his coaching and improving the team, that's all As for this thread about loans, that's how it works, nothing to do with liking or hating Farke at all ... in fact you could easily say Farke should heed Side Before Self regarding the release clauses, back the club and get on with his job
He was the same with Marsch. It was all Marsch's fault and now he's gone we can climb the table and avoid relegation. That didn't go well either so he stayed clear of the place. Now he's after Farke after 2 league games and a cup game.
I think my exact words were "be careful what you wish for!" There wasn't much out there to go for apart from @Jammy 07 pimping Dyche out again.
On the loan fee. All our went out with a half million loan fee except Harrison who it’s now being reported as no loan fee from Everton? I would also imagine the half million is euros too for the others. also never heard of a relegation clause where a player can be loaned out. I’m sure it’s happened but every season I see teams relegated and they usually have escalator contracts which go down on relegation and up when promoted. Leicester and Saints came down with us and flogged players netting them each around £100m, we have made nothing when we should have made around £70m by selling….. we are a laughing stock and no other club has had at least 11 relegation clauses 8 loans and 3 reduced transfer fees
Exactly right. Southampton and Leicester will be too six at least and we’ll be floundering in the bottom regions unless Farke can pull off a miracle
Or as is more likely, whether he does well or badly he cannot return to Leeds and Berlin (and every other club!) know that, they'll take him for peanuts or extend the loan. Result = Leeds lose.
mines a moan Adams to Bournemouth now on Skysports they have activated his clause and we can't stand in his way if interested.
That's the simple solution, except it's not as simple as that ... Farke's public comments about player commitment and contracts will mean there will be a large number of transfer targets who simply won't sign for him ... he's creating a big problem for himself and the club
What? By stating he wants players that are committed. These rat’s running off with their release clauses would have happily collected their staying up bonuses. Secondly they would have left regardless of who the manager was.
It's the easiest thing to make noises about players leaving ... I've just realised what the issue may be, Farke is taking players leaving personally and reacting badly ... I can't even begin to imagine how distraught he must have been when Max Aarons of all people turned his back on him ... there;s a lot of smoke right now, too much smoke, so how big is the fire?
You have no idea if that is true or not. There was always going to be an exodus, the club told the fans before Farke was appointed. Not sure why you seem so keen to lay the blame at Farke’s door rather than the players and agents that wanted the clauses and the people at the club that agreed them.
Farke is the only one coming out of this with any credit, obviously other than the players that want to stay and fight and aren't sulking because they were told a few home truths, precious little darlings
I'm not blaming Farke, I'm saying he's playing a dangerous game with his public attacking of players and not getting his tactics right
