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Financial fair play and long contracts.

Discussion in 'Sunderland' started by blackcatsteve, Jul 9, 2011.

  1. blackcatsteve

    blackcatsteve Well-Known Member

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    I will try not to get to numerical here, but this is the reason i believe we are getting such long contacts in football now.

    Lets say we spend 30 million and give all the players 3 year contracts, then to UEFA thats 10 million each season over the next 3 seasons, but if we give them 4 year contracts then that is 7.5 million over 4 seasons to Uefa, so it gives us an extra 2.5 million to play with each season, over the next 3 seasons. (as they only count the past 3 seasons).

    And lets be honest contracts are not worth the paper they are wrote on these days, so you could buy somone for say 20 million over 4 years, you then sell him at a loss, for say 14 million after 2 years, you have already had that player for 2 years so thats 10 million wrote off the last 2 seasons, you get 14 for them so you have actually made a profit of 4 million to Uefa, and you dont get the 10 million taking off the next 2 years, its wrote off completely.

    Just with all the mags saying we are daft to offer Brown and O`Shea 4 year contracts, but they are offering all their players 4-5-6 year contracts as well, its basically just so the club have more leeway in the next couple of years.

    But saying all that, clubs are allowed to run at a loss over the 3 year period to a tune of 38 million, then after 2015 30 million, so i personally think we will be fine in that respect.

    PS: Its late and watching the coppa america so hope all that made some sort of sense lol
     
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  2. Billy Death

    Billy Death Guest

    Steve mate, you've lost me, went right owa my head that.

    I will ask my financial advisor though.

    Anyways, hows you & your lass?
     
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  3. blackcatsteve

    blackcatsteve Well-Known Member

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    Fine mate, well wife is suffering a bit, went to her mams for the weekend, but i am bearing up.

    Ok in laymans terms lol

    Buy 1 player for 10 million, offer him a 3 year contract, to uefa thats 3.33 million a year for 3 years, say you offer him 20,000 a week, but he decides not to come, you could say, 10 million over 5 years = 2 million a year and up his wages by 500,000 a year which is 30,000 a week, and he will more than likely say yes, but in the long run the club is better off, as they have an extra 800,000 leeway each year (OK not a lot of money, but * that by 4-5 players and it soon adds up).

    Yes you are paying for it longer (but its only the last 3 years that count anyway), but there isnt many players these days that see out their contracts, especially not 4-6 years worth of them, so if you sell him in 3 years for 8 million, even though to us the fans we have made a loss, to the UEFA regulations we have made a 4 million profit.
     
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  4. Billy Death

    Billy Death Guest

    Steve, **** it mate.

    I just agree, cant even get my pay to last the month out without dipping in the copper jar me!
     
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  5. HairBearBunch

    HairBearBunch New Member

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    Fine mate, well wife is suffering a bit, went to her mams for the weekend, but i am bearing up.

    Ok in laymans terms lol

    Buy 1 player for 10 million, offer him a 3 year contract, to uefa thats 3.33 million a year for 3 years, say you offer him 20,000 a week, but he decides not to come, you could say, 10 million over 5 years = 2 million a year and up his wages by 500,000 a year which is 30,000 a week, and he will more than likely say yes, but in the long run the club is better off, as they have an extra 800,000 leeway each year (OK not a lot of money, but * that by 4-5 players and it soon adds up).

    Yes you are paying for it longer (but its only the last 3 years that count anyway), but there isnt many players these days that see out their contracts, especially not 4-6 years worth of them, so if you sell him in 3 years for 8 million, even though to us the fans we have made a loss, to the UEFA regulations we have made a 4 million profit.



    WTF??????
     
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  6. Ballin' Boy

    Ballin' Boy Member

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    interesting! Hope you're right Steve!
     
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  7. blackcatsteve

    blackcatsteve Well-Known Member

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    All i was trying to get accross is, if you sign a player for 20 million, its doesnt go on that season, or even over 3 years, it goes on the length of their contract, so if you buy 13 players 1 season for a combined cost of 30 million say, all on 6 year contracts, then thats only 5 million a year, for 5 years, not 30 million at once, or even 10 million over the 3 years.

    So the club has more cash to play with over the next 2-4 seasons, esp if their transfer/wage structure is close or over their turnover.
     
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