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Thread: Mercato Team (Ausilio & Co), Mercato Strategies, The Future & The Past

  1. #18421
    might be Deadpool wera's Avatar
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    We are seriously lacking one very competent winger, right back and midfielder to not be just a good team. I doubt Vrsaljko will be as good as Cancelo was, at least going forward, Barella is a good idea, but I'm afraid that it isn't just Joao Mario we are trying to sell, while we really lack somebody consistent up front, a more creative type, so I guess Politano (I know, he's new) and Karamoh will have to step up this season and try to feed Icardi and Perišić with goal opportunities.
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    If Icardi is ever sold for 110m euros i'll stop watching football and promote Pimp to moderator.

  2. Thanks (1): ADRossi

  3. #18422
    Adriano@10's Avatar
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    Quote Originally Posted by andrei View Post
    First of all thank you for the explanation Erte19\ Bluenine.
    I still have a few questions?
    Amortization reffers only to the fee we pay for transfer or also fee + salary.
    Let's take again Cancelo. From there we started. Let's suppose he received a 4 year contract 4m/y. With 40m fee that's makes total expenditure for Cancelo 56m for 4 years. Amortization is 14m per year. If after 2 years Juve sells Cancelo for 40m again, that's 12m capital gain. But if after 4 years Cancelo signs a new contract and the next day Juve sells him for 40m, the capital gain would be 40m, because the old 56m are already done?

    - - - Updated - - -

    That's bring me to a difussion about Sabatini. He wanted to sold Icardi.
    I suppose Icardi is already done with amortization or the value now is very low.
    If he could sold Icardi for 100m, that would have been nearly 100m capital gain. To share it in 2 years if could have been (loan for 50m and option for another year). And probably with another crops of minions on inflated prices for the books, we could have the possibility to sign Cancelo, Rafinha, Malcom, Naingolan and probably Schick next year.

    If this was more or less the plan of Sabatini, maybe was not bad at all.
    Amortization refers only to transfersum divided by the length of the contract so in your example of cancelo it would be 10 mio a year.so if jube would sell him after two years for 40 mio that would be a capital gain of 20 mio.

    And yes if the contract expires and he then signs a new one and jube sells him their profit would be 40 mio since he would be fully amortized so his book value would be 0.

    But since in real life most contracts get extended before they completely expired the rest of the book value of Cancelo would just be spread out over the rest of the new contract length.
    For example if Cancelo signs a new 4 year contract after two years of his current contract are expired the remaining 20 mio of his book value would be spread out over the 4 years of his new contract hence his now amortization cost would be 5 mio per year instead of the original 10.

    This is also the reason why we extended for example candrevas contracts in order to lower our amortisation cost.
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  5. #18423
    Linege's Avatar
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    well, looks like we are going with perisic politano wingers full throttle on two fronts (SerieA/CL) with a noob and a rag on the bench.

    it will be last season all over again.
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  6. #18424

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    Quote Originally Posted by Adriano@10 View Post
    Amortization refers only to transfersum divided by the length of the contract so in your example of cancelo it would be 10 mio a year.so if jube would sell him after two years for 40 mio that would be a capital gain of 20 mio.

    And yes if the contract expires and he then signs a new one and jube sells him their profit would be 40 mio since he would be fully amortized so his book value would be 0.

    But since in real life most contracts get extended before they completely expired the rest of the book value of Cancelo would just be spread out over the rest of the new contract length.
    For example if Cancelo signs a new 4 year contract after two years of his current contract are expired the remaining 20 mio of his book value would be spread out over the 4 years of his new contract hence his now amortization cost would be 5 mio per year instead of the original 10.

    This is also the reason why we extended for example candrevas contracts in order to lower our amortisation cost.
    Exactly.

    andrei, one more bit I will add for clarity on capital vs expense:
    Capital is what we spend to buy assets we keep over multiple years. Which means it's what we spend to buy players, but not their salary, which is expense. If we paid for a new stadium for ourselves or if we paid for stadium improvements that we own, then those are assets and the costs to build or buy them would also be amortized, just like money for buying players. But costs to maintain the stadium (repairs, cleaning, etc) are expense because we're not buying anything, we're just maintaining our asset.

    So that's the rule: if you're buying something, it's capital and the cost gets spread out. If it's the cost of running a business or you're renting something, it's expense that hits 100% in the year that you spent it.

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