how do we have 400mil to spend?
this is this old chestnut of amortisation again as if no money ever changed hands:
We confuse how players transfers are expensed to the accounts with cash flow.
example of gakpo. lets call it 42mil over 6 years
this becomes 7mil per year over 6 years - this is BOOK VALUE and appears in the profit and loss account (which is exactly why juve are in trouble for cooking the books btw)
the reality however is that when we start talking about cash flow and looking at where these player transfers actually go then things change.
PSV are now a debtor on our books, i've no idea when the 42mil actually changes hands and neither does anyone else. it could be up front it could be in two instalments, it clear has add ons included as well. however these will inevitably appear in the debtors column
when you then consider all of the wages we properly account for (unlike some clubs) and how other clubs have now ZERO debts (aka city and Chelsea) then they have far better looking cash flow depsite playing massive fees.
in short its all well and good saying we have 400mil before hitting some threshold (which one??) but in reality the club has to pay the wages and the debts of the organisation and that takes cash flow and liquidity. 13mil per year back to fsg, 70odd mil for anfield road end, 50mil capital for kirkby to be depreciated and so forth and so on.
400mil simply doesn't exist (as solid said down the back of the sofa)
I wish it did.
we have to look to the arsenal example. they are historically sitting on cash since 2004 and wenger getting absolutely insanely invested in not spending money. they had the highest of all cash balances due to this policy that wenger continued and it was like watching scrooge counting his pennies.
They then released the beats under edu etc and have been systematically sloshing that available cash out the door on all sorts for 3 or 4 years. they also absorbed all the covid losses.
we've never had that cash and certainly don't have it now. The rivals don't seem to give a flying **** about such issues and magic revenue form thin air to justify whaetver they like.