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The Loan to Buy system

Discussion in 'Southampton' started by stjohnson, Feb 3, 2015.

  1. stjohnson

    stjohnson Active Member

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    So Saints have brought in

    Alderweired - option on 6.5m fee at end of season
    Djuricic - option on 9m fee at end of the season
    Elia - option on 5.5m fee at end of season

    As well as Bertrand who has obviously now been snapped up at 10m , is this a good way of doing business? 'Try before you buy' comes to mind , but also had we just paid 6.5m for Alderweireld in the summer we would have him now where as its looking likely he will now go back to Madrid to either compete there or be sold for a lot more to another club.

    Thoughts?
     
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  2. Saintmagic

    Saintmagic Well-Known Member

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    I'm still slightly sceptical about it, memories of scenarios like Adebayor or Saganowski spring to mind where the player knows they are effectively not wanted by their parent club so are on a 6 month/season long trial so try that little bit more. There is a reason their current club don't want them so if it is down to a bad attitude then that can resurface when the deal is made permanently.

    That being said none of the players we have on loan seem to fall into that category (Elia aside, but the more I've looked into it it seems he just didnt perform too well at Bremen), so if the club think they are good enough after seeing them day in day out for awhile then it is a system that does have it's benefits.
     
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  3. Beef

    Beef Well-Known Member

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    Alderweireld wouldn't be here if we didn't loan him. He didn't want a permanent move at the time.
     
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  4. fran-MLs little camera

    fran-MLs little camera Well-Known Member

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    Exactly what I was going to say. Alderweireld wanted to try the premier league. We aren't a big enough club for him to have joined permanently at that point...I think he had bigger clubs after him. Even after our good season, I don't think he will sign for us.
     
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  5. fatletiss

    fatletiss Well-Known Member

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    So you'd be happy with the alternative, which is signing permanently a player where "there is a reason their current club don't want them?"

    Mmm, a contradictory thought at best. Nonsensical at worst.
     
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  6. Saintmagic

    Saintmagic Well-Known Member

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    OK let me slightly rephrase it then, there is a reason why their current club doesn't want them and are not able to shift them on permanently.
     
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  7. fatletiss

    fatletiss Well-Known Member

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    Agreed that is possible, but that makes it such a good system. Then it's down to the club, the manager and the player.

    You're still in "old Saints" mode. Saganowski was a long time ago. We've moved on :)
     
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  8. Saintmagic

    Saintmagic Well-Known Member

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    It is a good system, but has its flaws as I highlighted with the Adebayor and Saganowski scenarios. As I also said it would not appear that any of our current loanees fall into this category, most likely would be Elia based on his reputation, but who knows.
     
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  9. Beddy

    Beddy Plays the percentage

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    The loan to buy system is not a bad idea. My understanding is that if it is a loan to buy, a contract is drawn up with the loaning club including the selling price. The only people that can break that contract is if Saints decided not to buy, or the player decided not to stay. On other loan agreements where no fee has been agreed Saints would normally have first refusal. My understanding is Saints do not usually go down this route.
    One of the players where Saints had their fingers burnt, I understand, was when they loaned Cork the first time from Chelsea, without having a pre loan contract for purchase in place. My understanding was that cork was thought to be worth a smallish fee in those days, Saints played him and he did quite well. When it came to trying to purchase, the valuation was nearly 3 times that which saints were expecting!! However although Saints didn't get him then, nobody saw his potential and Saints got him for less than what they expected to pay in the first place, a couple of years later.
    Most loans these days are usually just that, as the loanee clubs are willing to gamble as to the future price going up rather than settle a fee agreement pre loan. Getting clubs to agree pre loan fees is what takes the time with saints loans.
     
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  10. Archers Road

    Archers Road Urban Spaceman

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    I imagine we are taking these players on loan because we are not in a position financially to buy them all. It's cheaper and more sensible to bring in a few loanees with the option to buy, even though some will get away, than it would be to go straight in to the transfer market and risk being saddled with a depreciating asset if things go wrong.

    These are purely business decisions. We may have a rich owner, but we are not a rich club, and probably struggle to balance the books. Something Cortese apparently couldn't grasp.
     
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  11. fatletiss

    fatletiss Well-Known Member

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    I haven't looked at accounts, however a really daft, *** packet look at transfer balance from the summer would make me hope that this is not the case... at least over the last 9 months anyway.
     
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  12. fran-MLs little camera

    fran-MLs little camera Well-Known Member

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    I don't believe we are that hard up, but the loan system means we don't commit the money up front in case things don't work out. It may also be easier to convince some players into a season long loan than into coming here permanently, for example Alderweireld. Loans can also help you over a period of injuries. Outright purchase has good and bad points.
     
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  13. fran-MLs little camera

    fran-MLs little camera Well-Known Member

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    Now if only we had taken Osvaldo on a loan :(
     
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  14. Archers Road

    Archers Road Urban Spaceman

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    We may have a surplus from recent transfer deals, if you take that in isolation. But I don't think the board were being alarmist during the summer when they spoke about the need to rebalance the club's finances. Tranfer fees are a one off cost, wages are an ongoing monthly commitment. I very much doubt we're in trouble, but I imagine we do need to be cost conscious at all times. And if we were over reliant on Liebherr's money just to tick over, then we'd also be at risk of falling foul of FFP regulations.
     
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  15. fran-MLs little camera

    fran-MLs little camera Well-Known Member

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    I agree....I reckon we are fine, but then I'm fine as well, but I soon wouldn't be if I started throwing it around. We've just paid 10 mill for Bertrand (when it wasn't essential to buy him at this moment)....that shows we have money, but the club will want to have money in hand because that is good business sense. There will be more Sky money coming in, so we will definitely have money in the summer.

    P.s. Wonder if we intended to buy Bertrand this month or if Chelsea offered us a deal.
     
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  16. ChilcoSaint

    ChilcoSaint What a disgrace Forum Moderator

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    Maybe we bought Bertrand so he is eligible to play against Chelsea?
     
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  17. Archers Road

    Archers Road Urban Spaceman

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    Not a bad transfer window for Chelsea, money wise.They paid £23 mill plus for Cuadrado, and got £22 for Shurrle plus an undisclosed fee believed to be £9 mill plus for Bertrand.

    Look at the quality of the players they're letting go, though. Was always impressed with Schurrle when I've seen him, and Bertrand arriving at Saints more than made up for the loss of that blonde kid who's name escapes me. How much did we get for Luke Thingy? I reckon we're getting good at this.
     
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  18. mowgli

    mowgli Well-Known Member

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    Loan with option to buy is working well. The difference is Ronald Koeman. He is the most disciplined manager since lawrie mac. Anyone who tries hard over six months and then eases off as soon as he gets a contract simply would not get away with it under Ron.
     
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  19. Beef

    Beef Well-Known Member

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    Nope, you also have to look at the Prem money we get. We have plenty of money which will be seen in the summer. Wages were also fine, you only have to look that our highest earner was on £60k and he was only on that a few months before leaving.We just choose to be sensible, the loan to buy system is not just used by us.
     
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    Last edited: Feb 4, 2015
  20. Jose Fonte baby

    Jose Fonte baby Well-Known Member

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    I had a hope that Bertrand was being made permanent so we could fit in another loan signing.
     
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