Breaking news: Ibrahimovic to be sold to Milan

aha... My bank came off looking reasonably good in the crisis, so

I still doubt that 12m handshake.. if it is a loan then I would say it will be 3m (the difference in wages) but I very much doubt that the club is willing to compensate differences in wages when he is no longer a Barça player.

Hem fet un.. wrote:

Etoos value write down would have been in the "goodwill" column. Overall it should have been a write down of the assets (and liabilities) rather than an increase of the liabilities

Don't think Eto's value would have been written off. If he only had a year left it would have only been the cost of that yearly contract probably so that would have simply been added to Ibra's balance sheet value at cost when he was bought. So if Ibra was bought for £49m and Eto was being carried at say £8m for the contract, Ibra was probably put on your balance sheet at £57m. That is unless Eto was being valued upwards to represent his market value irrespective of the contract. Don't know enough about footballer valuations to say.

As Bluey says though, the cashflow implications are what are important here, hence Barca taking out a new loan to be able to afford the yearly or half yearly wages (or whatever time scale that covered).

@ Messiah

£400m is a shed load of money to be built up on transfers and wages. This isn't like United or Liverpool's debt which is really shares in the clubs, this is all money spent on the team and it takes a hell of a long time to spend that much on a team, especially when your turnover is as high as Barca's is. It is easily conceivable that the Ibra transfer is behind a lot of your result cashflow problems. Milan may just be easing them for you.

COTR wrote:

Hem fet un.. wrote:

Etoos value write down would have been in the "goodwill" column. Overall it should have been a write down of the assets (and liabilities) rather than an increase of the liabilities

Don't think Eto's value would have been written off. If he only had a year left it would have only been the cost of that yearly contract probably so that would have simply been added to Ibra's balance sheet value at cost when he was bought. So if Ibra was bought for £49m and Eto was being carried at say £8m for the contract, Ibra was probably put on your balance sheet at £57m. That is unless Eto was being valued upwards to represent his market value irrespective of the contract. Don't know enough about footballer valuations to say.

As Bluey says though, the cashflow implications are what are important here, hence Barca taking out a new loan to be able to afford the yearly or half yearly wages (or whatever time scale that covered).

@ Messiah

£400m is a shed load of money to be built up on transfers and wages. This isn't like United or Liverpool's debt which is really shares in the clubs, this is all money spent on the team and it takes a hell of a long time to spend that much on a team, especially when your turnover is as high as Barca's is. It is easily conceivable that the Ibra transfer is behind a lot of your result cashflow problems. Milan may just be easing them for you.

exactly which is way i can't believe ibra added that much to it

I think your point about the cash flow problems though, the money we wasted on him and chygrynskiy is the main cost of that

not excluding,

Kerrison
Caceres
Helb
Henrique

Damn we are lucky to have a great youth system, thats millions wasted

bluenine wrote:

fcb wrote:@bluenine: You're just assuming things, and inflating numbers Marca style. Nobody offered 35m for Etoo. He had 1 yr on his contract FFS. And was 29 yrs old. I also don't buy your calculation of 52m. Let's say Ibrahimovic was valued at 70m last summer...you can't do 70-28 and say Barça lost 42m, because the 28 is *next* summer. By then Ibrahimovic's value is not going to be 70m. It's not 70m now either.

As you say, this entire deal is about accounting jugglery from both clubs to minimise the final impact on their financial statements.

Dude, I am a banker. I do this for a living. I am talking about the moolah Barca paid. Accounting numbers in football are quite creative and have little business relevance as I explained above.

There are some assumptions I am making:
1. Assuming Eto'o was worth Eur 31m last season in the market. He was 28 last summer, just a year older to Ibra. I think its actually a conservative market value, he was probably worth more. But lets roll with Eur 31m. If you think his value was 11m, just reduce the final figure by 20m.
2. Assuming the current Ibra deal includes a transfer fee of Eur 40m, and a golden handshake of Eur 12m. We don't yet know the actual figures, but this analysis is about what deal these figures represent from a business perspective.

Analysis:
Money Barca will vs spent on Ibra:
49m to Inter last summer
+ 31m (Eto'o) to Inter last summer
+ 18m to Ibra in wages (pre tax, conservative estimate, correct this if its wrong)
+ 12m to Ibra, golden handshake
Total = Eur 110m

Money Barca will have got from Ibra, apart from 1 season of playing:
40m from Milan next season
+ Xm from any sponsorship revenue / shirt sales (not sure if there was any significant moolah here, please add)
Total = Eur 40m

So 1 season of Ibrahimovic costed Barca about 110-40 = 70m euros! Forget the accounting mumbo-jumbo, this is the actual moolah lost here. No spin. Just numbers. Coz when you take management decision, you deal in actual numbers, the balance sheet is for the acountants to play with and justify every decision. You can change the "Eto'o value" or the "shirt sales" revenue to get your estimate based on the above simple analysis.

[b]

So it's all your fault!

You've forgotten that the money Inter got for Ibra allowed them to buy half a new team which then knocked Barca out of the CL. How much more money would Barca have made if they had won the CL last season?

The potentially decisive meeting between Barca, Galliani and Raiola is underway.

Murray wrote:You've forgotten that the money Inter got for Ibra allowed them to buy half a new team which then knocked Barca out of the CL. How much more money would Barca have made if they had won the CL last season?

Not that much. Long term it pays off in terms of marketing, but purely in terms of numbers it doesn't help that much because the bonus payments to players more or less cancel out the prize money. TV money wasn't a huge difference anyway since Barça reached the semifinals.

The meeting's still ongoing, but a decision is reportedly close.

Berlusconi has arrived at Milan's training ground, but the media are divided on whether that's to meet the team on the eve of the new season, or whether he wants some glory by being the one that announces the transfer officially.

Meanwhile, the deal for Huntelaar to Schalke is also close.


Update: Ibrahimovic has arrived at the Barça offices to sign the paperwork. When he arrived, he joked with reporters: "I'm here to sign a contract renewal with Barça"

25m euros WTF

I must say 25 million euros is a steal. No matter what kind of positive spin Kas puts on this, this is an absolute deal for Milan. Barca got played.

one could put a spin on anything above 30, but 25m

this is the 3rd time a club from milan has fucked us, the 3rd fucking time

Forza Italia!Forza Milan! wrote:I must say 25 million euros is a steal. No matter what kind of positive spin Kas puts on this, this is an absolute deal for Milan. Barca got played.

Hang on, why am I being accused of "putting a positive spin" on it? All I've talked about through this thread (in terms of the finances of the deal) is various accounting treatments of this deal, as reported by others. And most of these "positive" comments were based on the assumption that the deal is 40m euros.

25m is a bit of a joke. But based on initial reports it seems that at least Barça won't have to pay wages for this season. Let's wait for more details to emerge.

fcb wrote:

Forza Italia!Forza Milan! wrote:I must say 25 million euros is a steal. No matter what kind of positive spin Kas puts on this, this is an absolute deal for Milan. Barca got played.

Hang on, why am I being accused of "putting a positive spin" on it? All I've talked about through this thread (in terms of the finances of the deal) is various accounting treatments of this deal, as reported by others. And most of these "positive" comments were based on the assumption that the deal is 40m euros.

25m is a bit of a joke. But based on initial reports it seems that at least Barça won't have to pay wages for this season. Let's wait for more details to emerge.

We are officially the worst in the history of the world in selling players.. If and it is a big if, Milan takes care of the wages, then 25+15m makes 40m, but that is still about 10-15m less than what I would have agreed too... jesus christ, Milan is seriousely pissing me off.. But then again they dont have much money.

It gets even better for Milan, they've finally got rid of Huntelaar

Hem fet un.. wrote:

fcb wrote:

Forza Italia!Forza Milan! wrote:I must say 25 million euros is a steal. No matter what kind of positive spin Kas puts on this, this is an absolute deal for Milan. Barca got played.

Hang on, why am I being accused of "putting a positive spin" on it? All I've talked about through this thread (in terms of the finances of the deal) is various accounting treatments of this deal, as reported by others. And most of these "positive" comments were based on the assumption that the deal is 40m euros.

25m is a bit of a joke. But based on initial reports it seems that at least Barça won't have to pay wages for this season. Let's wait for more details to emerge.

We are officially the worst in the history of the world in selling players.. If and it is a big if, Milan takes care of the wages, then 25+15m makes 40m, but that is still about 10-15m less than what I would have agreed too... jesus christ, Milan is seriousely pissing me off.. But then again they dont have much money.

At the end of the day, it always comes down to who is more desperate to get the deal done. In this case, it was clearly Barça. And like you say, Milan have no money so kept negotiating.

But if you compare this to the Toure sale for example, then I think we got a good fee for him...and in that case, we didn't want to sell, and City had money, hence the fee was high.

milan sell hunter for 12m and get ibra for 25, something is wrong with the world.

when will the club learn to sell players, madrid got 6m euros for a striker that has never played a minute of football in the top flight.

It probably went a bit like this:

Rossell: OK, Mr. Galliani, we want 50M for Ibra.
Baldie: We would like to loan him from you and pay half his wages.
Rossell: 40 M?
Baldie: 15
Rossell: OK, how about 25M and either Pato or Thiago Silva?
Baldie: 25M and you can have one of our great champions Oddo, Jankulovksi or Kaladze
Rossell: Just take him for 25...
Baldie: If you insist..

(Papers are signed and Rossell leaves the room...)

Baldie --->

It is the same story everytime an expensive players wants to leave... No takers, and Milan shows up in the end and gets him on the cheap.

It's official now

and only €24m

Red n' Black wrote:It probably went a bit like this:

Rossell: OK, Mr. Galliani, we want 50M for Ibra.
Baldie: We would like to loan him from you and pay half his wages.
Rossell: 40 M?
Baldie: 15
Rossell: OK, how about 25M and either Pato or Thiago Silva?
Baldie: 25M and you can have one of our great champions Oddo, Jankulovksi or Kaladze
Rossell: Just take him for 25...
Baldie: If you insist..

(Papers are signed and Rossell leaves the room...)

Baldie --->

Loan for the 1st year, then a mandatory fee of 24m next summer.

Fuck me, that's a fucking shit deal. I want to hear Rosell explain this.

Guardiola doesn't escape blame either...he's gradually adding some entries in his "Cons" column. He earns 8m a year now, as much as Ibrahimovic. The trophies and good football better fucking keep coming.

According to the club website, the deal will save Barça 60m...I wonder if we'll get a proper explanation or not

Acuerdo para la cesión de Ibra al Milan

www.fcbarcelona.cat

El FC Barcelona y el AC Milan han llegado a un acuerdo para la cesión del jugador Zlatan Ibrahimovic al conjunto italiano para esta temporada 2010/11, durante la cual el AC Milan asumirá la totalidad de la ficha del jugador.

El acuerdo incluye una opción de compra para el AC Milan, que ejercitará a finales de esta temporada, por un valor de 24 millones de euros.

Adicionalmente, cuando se ejecute la opción de compra, el conjunto de la operación supondrá unos ahorros para el FC Barcelona de aproximadamente 60 millones de euros.

La operación ha sido posible gracias a la colaboración del jugador y a la buena predisposición de su agente en el tramo final de la negociación.

And the bit in bold thanks the player and his agent for their goodwill in the final stages of negotiations, to allow this deal to go through

I bet that slimy fucker Raiola made this a condition of the deal: "drop all legal threats against me or we cancel the deal", knowing bridges between the player and club had already been burned.

This is an absolute joke.
Why do u say that we were desperate to sell, when we weren't?
Ibra had 3 more years in his contract, his agent could have moaned as much as he wanted but we should have kept him.
Next year City would definitely bid for him and im sure a large sum would have been given from them. Absolutely shameful negotiations from us.
It's like Milan came as saviors to save us from the evil, same shit as last year with Inter, just this time even worse.

TITO wrote:This is an absolute joke.
Why do u say that we were desperate to sell, when we weren't?
Ibra had 3 more years in his contract, his agent could have moaned as much as he wanted but we should have kept him.
Next year City would definitely bid for him and im sure a large sum would have been given from them. Absolutely shameful negotiations from us.
It's like Milan came as saviors to save us from the evil, same shit as last year with Inter, just this time even worse.

Well that's why I put part of the blame on Guardiola. Initially everything indicated he would stay. We weren't desperate to sell as of last week. The club then encouraged Milan to start negotiating, but instead of stopping early on when it was clear the fee would be low, they kept talking over 4 days. During this time the war of words between the player, his agent, and the coach kept worsening.


He wasn't a total disaster on the pitch, just disappointed in some aspects...yet in terms of squad harmony, the situation worsened to a point where he had to be sold. Guardiola could have easily stopped all this if he cared about the financial aspects of the deal (which I guess he probably doesn't, considering how much he insisted on Chygrinskiy last year).


Rosell won't act because he's already on bad terms with Pep, and probably doesn't want to worsen the situation by going against the coach's wishes. Plus of course for him there's the temptation of getting rid of a marquee Laporta signing, with the message that it was a disastrous signing for the club.


Getting rid of someone on 12m a year (and replacing him with no-one at great cost to the squad's prospects, or with another Brazilian in Robinho) is also good for his self-imposed mission of making the "bad" financial situation better


And as you say, last year also Guardiola fucked the situation with his (in)famous "feeling" comment on Etoo. This whole clusterfuck of the past 2 summers could have been avoided - and we would probably have another CL title - if Etoo just stayed on for a year then left on a free this summer (probably to Milan as well).

And one more thing. It says that IF Milan decide to buy him next year then they will pay 24mill. So, it's not mandatory for them to do that.
Someone explain this to me, cause it has to be one of the worst deal in the history of football.
Some of u mentioned some golden handshake between the club and the player, which was in the region of 12 mill euros, which is his annual salary.
So, we are paying him his annual salary this season, and he plays for Milan?>????????
And next season, IF Milan dont buy him, we get him back>>>>??????

No, I don't think Barça is paying the salary this year. And I don't think there is any golden handshake either. None of that has been mentioned for now, though of course it may only emerge later. As I've said before, I really can't believe the club is so stupid to accept a 24m fee and then pay 12-15m more on top of that


As for the buy clause, it's mandatory. If they don't take it up, then they have to pay a penalty. No idea what that penalty is, but again, I hope the club wasn't stupid enough to set it lower than 24m. Otherwise Milan will just sell to City for 40m and not worry too much about paying the penalty.

Messiah, probably you can come up with the sums.
But can somebody summarize all the failures insisted from Pep during his reign? In euros that is.

Raiola has just confirmed that Barcelona will not pay any severance to Ibrahimovic. So indeed there was no "golden handshake", and no wages for this year either (if the 60m figure from the official website is accurate).

TITO wrote:Messiah, probably you can come up with the sums.
But can somebody summarize all the failures insisted from Pep during his reign? In euros that is.

10m on Chygrinskiy.
(you can put a disclaimer here...the club sold him, not Guardiola. So perhaps he would have eventually come good...it depends on what you thought of him as a player...I thought he had potential, others felt he was hopeless).


15m on Hleb (he'll surely be worth nothing after all the loans).


Up to 15m on Caceres (bought for 10m up front, rising to 15m based on certain variables...I'm not sure if those were activated or not)...but in his case there's more chance than Hleb of getting a fee at some point.

(Also, Caceres is not entirely Guardiola's fault. I believe this was a signing initiated by Txiki).


20m on Etoo, if you want to consider his market value and not his accounting book value (which was, by some accounts, 0).


Keirrison and Henrique were 14m and 8m respectively, but both were Txiki's signings, not Pep.


And god knows how much on Ibrahimovic. There are 10283085308 different calculations out there. Our resident banker (Bluenine) has put up some sample calculations on the previous couple of pages if you choose to believe those.