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Depending on wages...

Discussion in 'Newcastle United' started by aginairrr, Jul 18, 2011.

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  1. You'veBeenTiote'd

    You'veBeenTiote'd Active Member

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    I'd only take him if Man City still paid his wages, although i'd still much rather play Airey or Donaldson than him...
     
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  2. Tim Kruls Zulu Shield (:)

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    i think if you buy for 18m, selling for anything less than that would make a loss
     
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  3. Smudger

    Smudger Active Member

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    Wouldnt want Jo, although I was impressed with him at Everton. Is Caicedo still on City's books?
     
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  4. Donkey Toon

    Donkey Toon Active Member

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    I know what you mean, I avoided going into accountancy speak. :)

    Player contracts are considered as intangible assets and are amortised over the length of the contract. I think he was signed on a five year contract so he will have amortised three years so far leaving his Net Book Value at about £7.2m (that is effectively his reportable worth to the club). Sell for more and they can show a profit in the year, less and they have to show a loss. With the fairplay regs kicking in all clubs will want to avoid these actual losses against NBV.

    It is why the belief that clubs like Man City who far more players than they need, will sell at bargain prices probably isn't as true as we would like. They will whenever possible try to get the NBV of the player back at least.

    Hope that wasn't too boring. That was why I tried the sneaky brief post before :)
     
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