Breaking news: Ibrahimovic to be sold to Milan

Cheb Hamouda wrote:

Murray wrote:Milan have actually spent some money, that is a shock. Not the best way of spending it though, they still have a lot of old players who need replacing.

The change is gradual, you cannot replace your starting XI overnight, you keep the experienced ones that represent the glory of the club (Pirlo, Nesta, Inzaghi, Seedorf) to teach the newcommers about the way the club is run and replace the ones that lost the hunger/ability (Dida, Gattuso, Kaladze, Jankulovski). Milan are no longer an oldies club as people continue to refer them to, Leonardo did well to give some youngsters a starting berth (Thiago Silva, Antonini, Abate) and now Allegri is bringing in new players from Primavera (Oduamadi, Merkel, Strasser, Verdi).

Also, Milan are waiting for some of the old player contracts to end next season... I think quite a few end next summer, 8 - 10 of them. Thats when I expect Milan will spend big time. Berlu has jus been avoiding a lot of expensive "golden handshakes".

IMO this attack looks good

-----Pirlo--Ambrosini

Pato-----Ibrah-----Dinho

---------Borriello

SLG wrote:IMO this attack looks good

-----Pirlo--Ambrosini

Pato-----Ibrah-----Dinho

---------Borriello

Bloody hell, that would never work, they'd be swamped in midfield.

Yeap, it's almost certainly going to be Flamini, Pirlo and Boateng/Ambrosini in midfield.

bluenine wrote:

Hem fet un.. wrote:

TM wrote:Golden handshake? What's that all about?

Raul and Guti also get golden handshakes before leaving RM.. as a sort of compensation for being kicked out. I think we are actually talking several millions each.

Appparently the golden handshake amount has been agreed.... its rumoured to compensate Ibra for taking the pay cut at Milan.

Looks like this deal is as good as done.

That's interesting. According to reports in Italy, his base salary was actually 'only' 9m euros a year. So the golden handshake would be 3m euros since he's now taking 8m a year at Milan.

But if the Spanish reports all year long are true, then Barça may have to pay 12m euros

Deal is not yet officially closed, but Ibra's agent has said "the baby is now in it's 8th month". Allegri has also already spoken to Ibrahimovic. All details incl. exit bonus and image rights are sorted out between Barça and the player, so now it's just small details remaining between Milan and the player.

The final meeting is at 4.30pm tomorrow (Saturday) at Camp Nou, with Rosell, Galliani, and Raiola all attending.

---------------------------------

And speaking of Raiola, Barça have issued an official statement condemning his recent provocative comments towards Guardiola and the club. Legal action is also being considered.

Good, I hope Barça really fuck him over. People like him are what creates more and more unnecessary money-related problems in football. I realise that agents have to protect their client no matter what offense it may cause to others, but guys like Raiola, Zahavi, etc. go beyond that...they also seek to drive as many transfer deals as possible, so that they keep earning their millions in commissions. Disgraceful, the lot of them.

Some great info coming through from Gabriel Marcotti over the past hour or so. I'll just copy-paste his Twitter feed (note: it's in reverse chronological order, so start reading from the bottom up):



theboyler @Marcotti Golden farewell = 15 M which is being held in limbo between FCB and MIlan balance sheet is all Ibra's t play with (12 minutes ago)

@dmnsctt OK, so it's 69, not 70... 10 minutes ago via web in reply to dmnsctt

Just to reiterate before we get carried away. Ibra deal NOT done. Meeting at 430p sat. Last sticking point is golden farewell from Barca. 12 minutes ago via web

Raiola is also apparently helping to get Huntelaar to Schalke.. 12 to 15m... I'm told.. (but far from done) 14 minutes ago via web

@rosso_neri Well, it makes sense for Milan if you think Ibra will be worth 40m in a year's time 14 minutes ago via web in reply to rosso_neri

Just retweeted valuable piece of inform @theboyler Hardcore accountancy magic!!! 15 minutes ago via web

theboyler @Marcotti and Milan might be able to offset liability of 40M to FCB & use current FCB amortisation to make 15M on the deal in their accounts 17 minutes ago via TweetDeck in reply to Marcotti Retweeted by Marcotti and 2 others

@tompetty17 After 5 years, he can leave on a free, b/c his contract expires, so he's no longer theirs, hence value zero 17 minutes ago via web in reply to tompetty17

Milan have 11 expiring contracts next summer. Some 70m Euros in savings. Huntelaar will fetch 12-15m. 18 minutes ago via web

@dmnsctt Try 70m. cash plus Eto'o, remember? 20 minutes ago via web in reply to dmnsctt

theboyler @Marcotti so Milan have a futures contract on Ibra, which sits as an asset on both accounts. Barca have turned book value into liquidity 21 minutes ago via TweetDeck in reply to Marcotti Retweeted by Marcotti and 2 others

Guys, credit where credit is due. I'm not breaking this Ibra stuff, Sky Italia's excellent Alessandro Alciato, is reporting it. 21 minutes ago via web

@eoghaner Apparently. Maybe Raiola can enginner a move to Dubai at that point... 23 minutes ago via web in reply to eoghaner

@AustinNeil worse. Ibra went through it when he moved from Juve to Inter 23 minutes ago via web in reply to AustinNeil

@dmnsctt Eto'o was 20m on their balance sheet... and they threw in 50m in cash.. that's what their books say 24 minutes ago via web in reply to dmnsctt

Barca paid 70m for him, but, on their books, he depreciates every yr over 5 yrs, so now, after 1 yr, he's a 56m asset.Nxt yr, he's 42m asset 26 minutes ago via web

Milan get Ibra on loan. Next summer, Milan have to buy him at pre-arranged price (my guess, 40m). 28 minutes ago via web

OK, will try to clarify Ibra deal. bear with me, Sky Italia's reporter A.A. has basically been living with Raiola last 72 hrs... grt source 29 minutes ago via web

For those who asked about "Beckham Law": http://en.wikipedia.org/wiki/Beckham_law 30 minutes ago via web

@mrmeredith88 unconfirmed, wd guess region of 40m 31 minutes ago via web in reply to mrmeredith88

@Gastro1 Nope, but you kinda need to understand some of this stuff to cover football these days.. 32 minutes ago via web in reply to Gastro1

@BeeEffe Plus, in cash terms, save his wages this year 32 minutes ago via web in reply to BeeEffe

@BeeEffe objective (as I'm told) is to avoid balance sheet loss. A yr from now will be 43m on books and if they get 40, it's just 3m loss 33 minutes ago via web in reply to BeeEffe

@dh3313 That's why it's a loan. He's technically still a Barca player (at 57m Euros). Next year it goes down to 43m Euros, less of a hit. 37 minutes ago via web in reply to dh3313

IlhamiD @Marcotti We want Robinho. and he's coming to Besiktas JK. 40 minutes ago via web in reply to Marcotti Retweeted by Marcotti

@timmymagic07 Wd guess Milan now even more keen to sell the hunter... 39 minutes ago via web in reply to timmymagic07

@jacobmolenkamp The pizza boy has come a long way, hasn't he? Only in America... (and Holland, evdiently...) 39 minutes ago via web in reply to jacobmolenkamp

@StuartJHarper Yeah, though to be fair he wanted to stay at Barca... 40 minutes ago via web in reply to StuartJHarper

@JaseCurtis Genius (some might say evil genius) agent 40 minutes ago via web in reply to JaseCurtis

@hkiamil Reports of Schalke interest for Huntelaar? No idea... Also Robinho... does nobody want him? 41 minutes ago via web in reply to hkiamil

@JoseMajoras In the last seven years he has won the league every single time.If he's shit, it's the kind of shit most can only fantasize abt 42 minutes ago via web in reply to JoseMajoras

@DanBrennan99 Yeah, but Barca loved him when he delivered Ibra last year. And Juve loved him when he got them Nedved... 43 minutes ago via web in reply to DanBrennan99

@Isis1122 non credo... 43 minutes ago via web in reply to Isis1122

@the_bbq_bob yeah, but if he was your agent, you'd love him, no? 44 minutes ago via web in reply to the_bbq_bob

@TheWestBromBlog Guardiola really doesn't rate him. 44 minutes ago via web in reply to TheWestBromBlog

...and Milan get to pay in a year's time... plus, I think he may enjoy some or all of "Beckham Law" advantages for antoher yr... 45 minutes ago via web

Basically, loan + forced buyback is ploy to get accounting + fiscal advantages. Remains as asset on Barca's books at 57m for 1 more year about 1 hour ago via web

Ladies and Gentlemen... I give you MINO RAIOLA!!! Terror of football clubs everywhere, hero of footballer looking to maximize wages! about 1 hour ago via web

... which is, according to Sky Italia, Ibra wants golden farewell from Barca, amt to be negotiated. about 1 hour ago via web

Sky Italia; deal reached, one-yr loan, Milan obliged to buy him outright in a years' time or pay penalty, one final sticking point... about 1 hour ago via web

Sky Italia reporting tomorrow at 430 pm Galliani, Rosell and Raiola meeting at Camp Nou to finalize Ibra move to San Siro about 1 hour ago via web

Kas: Still got stuff to d over Supercup. That is priority. Will get to Gandini when I have a mo. sorry.

No prob, take your time...was just a general question anyway, not really urgent.

-------------------------------------------

All papers today say the deal is confirmed, Milan's lawyer will be travelling to Barça to sign off everything. The deal will be structured as a loan for the first year, with a mandatory buyout of 30m next summer.

fcb wrote:

bluenine wrote:

Hem fet un.. wrote:

TM wrote:Golden handshake? What's that all about?

Raul and Guti also get golden handshakes before leaving RM.. as a sort of compensation for being kicked out. I think we are actually talking several millions each.

Appparently the golden handshake amount has been agreed.... its rumoured to compensate Ibra for taking the pay cut at Milan.

Looks like this deal is as good as done.

That's interesting. According to reports in Italy, his base salary was actually 'only' 9m euros a year. So the golden handshake would be 3m euros since he's now taking 8m a year at Milan.

But if the Spanish reports all year long are true, then Barça may have to pay 12m euros

Euro 12m is the amount that Raiola asked, dunno what was agreed. And it is the difference between his take home at Barca (12m pa) and at Milan (9m pa) over 4 years.

The reported deal is:
- First year loan
- Eur 30m (or Eur 40m) transfer fee - Milan to Barca
- Eur 12m "golden handshake" - Barca to Ibra
- Eur 9m (post tax, 18m pre-tax) salary pa - Milan to Ibra

If the above is true, Raiola probably out-negotiated both Rossell and Galliani. Milan did ok, but its a shite deal for Barca.

bluenine wrote:

fcb wrote:

bluenine wrote:

Hem fet un.. wrote:

TM wrote:Golden handshake? What's that all about?

Raul and Guti also get golden handshakes before leaving RM.. as a sort of compensation for being kicked out. I think we are actually talking several millions each.

Appparently the golden handshake amount has been agreed.... its rumoured to compensate Ibra for taking the pay cut at Milan.

Looks like this deal is as good as done.

That's interesting. According to reports in Italy, his base salary was actually 'only' 9m euros a year. So the golden handshake would be 3m euros since he's now taking 8m a year at Milan.

But if the Spanish reports all year long are true, then Barça may have to pay 12m euros

Euro 12m is the amount that Raiola asked, dunno what was agreed. And it is the difference between his take home at Barca (12m pa) and at Milan (9m pa) over 4 years.

The reported deal is:
- First year loan
- Eur 30m (or Eur 40m) transfer fee - Milan to Barca
- Eur 12m "golden handshake" - Barca to Ibra
- Eur 9m (post tax, 18m pre-tax) salary pa - Milan to Ibra

If the above is true, Raiola probably out-negotiated both Rossell and Galliani. Milan did ok, but its a shite deal for Barca.

Well, not necessarily a bad deal for Barça. Firstly, his huge salary (either 9m or 12m, depending on what's right), is off the books.

Then as you said, we don't know yet how much the golden handshake is. If it's 3-5m, it's no big deal.

And finally, it all depends on how his transfer was initially treated last year...if it was a 50m transfer fee that's to be amortized over 5 years, his value next summer will be 30m euros. If it's 50m over 4 years, then his value will be only 25m next summer.

As you can see in the Twitter chats from Gabriele Marcotti's page above, both clubs may use the loan for 1 year as a creative way of minimising any loss on the deal.

I'm pretty confident that once all is said and done, Barça will lose less than 10m euros overall, if even that.

You mean less than £10m euros PLUS Eto Kas

That makes it about £35m lost, if you somehow manage to recoup as much as you think you will.

fcb wrote:

bluenine wrote:

fcb wrote:

bluenine wrote:

Hem fet un.. wrote:

TM wrote:Golden handshake? What's that all about?

Raul and Guti also get golden handshakes before leaving RM.. as a sort of compensation for being kicked out. I think we are actually talking several millions each.

Appparently the golden handshake amount has been agreed.... its rumoured to compensate Ibra for taking the pay cut at Milan.

Looks like this deal is as good as done.

That's interesting. According to reports in Italy, his base salary was actually 'only' 9m euros a year. So the golden handshake would be 3m euros since he's now taking 8m a year at Milan.

But if the Spanish reports all year long are true, then Barça may have to pay 12m euros

Euro 12m is the amount that Raiola asked, dunno what was agreed. And it is the difference between his take home at Barca (12m pa) and at Milan (9m pa) over 4 years.

The reported deal is:
- First year loan
- Eur 30m (or Eur 40m) transfer fee - Milan to Barca
- Eur 12m "golden handshake" - Barca to Ibra
- Eur 9m (post tax, 18m pre-tax) salary pa - Milan to Ibra

If the above is true, Raiola probably out-negotiated both Rossell and Galliani. Milan did ok, but its a shite deal for Barca.

Well, not necessarily a bad deal for Barça. Firstly, his huge salary (either 9m or 12m, depending on what's right), is off the books.

Then as you said, we don't know yet how much the golden handshake is. If it's 3-5m, it's no big deal.

And finally, it all depends on how his transfer was initially treated last year...if it was a 50m transfer fee that's to be amortized over 5 years, his value next summer will be 30m euros. If it's 50m over 4 years, then his value will be only 25m next summer.

As you can see in the Twitter chats from Gabriele Marcotti's page above, both clubs may use the loan for 1 year as a creative way of minimising any loss on the deal.

I'm pretty confident that once all is said and done, Barça will lose less than 10m euros overall, if even that.

It was 69m (49m fee + 20m of Eto'o's Balance sheet value) last year, amortised over 5 years. So this year, its 55m, next year 41m. But thats just balance sheet jugglery, in actual business terms, Barca are not coming out of this too well. The Golden Handshake is more likely to be near 12m than 3m. From a Balance sheet/P&L perspective, Barca will look alright as they will treat the golden handshake more like his salary for this year.

So from accounting purposes, Barca lost very little in the Ibra saga. They will pay his "salary" this year and not use him (12m golden handshake). And they will sell him for 40m next summer, when his value is 41m in the books. So a net 1m loss.

But forget the accounting for a while. Ibra cost Barca 49m plus Eto'o. If Barca had sold Eto'o to the highest bidder, he would ve fetched at least 30-35m. So lets say the cost of Ibra was 80m. The sale this summer is at 28m (40m they get next summer, minus the golden handshake assumed to be around 12m). So barca lost a net "business value" of 52m in the Ibra saga. Thats a BIG hit.

@COTR: Well we don't know how Etoo's valuation was treated. There are various things I've read:

1. His original transfer fee had already been amortized because his original contract had completed, so when Barça gave him to Inter there was no loss.

2. His market valuation was still 20m euros at the time of the transfer, and Barça already wrote that off as a loss last year.

3. His actual value (and loss to Barça) was taken as just 8m euros, because that's what his yearly salary was, and he had only 1 year on his contract.

4. As you say, the value of Ibrahimovic was recorded as 70m, so the amortization each year across 5 years would be 14m a year, and his value next summer is thus 42m. This is the one that Marcotti seems to think is correct...if so, it's a roughly 10m loss for Barça plus whatever the golden handshake is.

So your guess is as good as mine.


@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.

fcb wrote:Well we don't know how Etoo's valuation was treated. There are various things I've read:

1. His original transfer fee had already been amortized because his original contract had completed, so when Barça gave him to Inter there was no loss.

2. His market valuation was still 20m euros at the time of the transfer, and Barça already wrote that off as a loss last year.

3. His actual value (and loss to Barça) was taken as just 8m euros, because that's what his yearly salary was, and he had only 1 year on his contract.

4. As you say, the value of Ibrahimovic was recorded as 70m, so the amortization each year across 5 years would be 14m a year, and his value next summer is thus 42m. This is the one that Marcotti seems to think is correct...if so, it's a roughly 10m loss for Barça plus whatever the golden handshake is.

So your guess is as good as mine.

That was not his market value, that was the value in the balance sheet. Football accounting is tricky business, people overvalue and undervalue assets as and when it suits them coz its very difficult for accountants to verify that in the market. So usually, its best to forget about the balance sheet (let the club officials worry about how they represent stuff there) and look at it from a business perspective.

And from a business perspective, as I mentioned above, Barca will end up paying 52m plus his salary of 18m? (pre-tax) for 1 year of Ibra's service. Barca lost 70m for 1 season of Ibra. Thats a poor piece of business.

Which club would have paid more than 20m for Etoo?

IIRC those were the numbers being talked about when City and Spurs were interested. It was his wage demands that caused a problem for these clubs.

WTF, golden handshake for fucking what, shitting up th place for half and season and having a c**t of an agent.

Now wonder ibra loves his agent, the man keeps getting him big money

Fucking rosell, i thought he was a transfer geius

eto'o was a bad asset on the clubs books, so in the clubs eyes he and little to now value.

They placed him in the transfer market and no one was interested and this the value of a player in determines by the club selling the player and the club buying, and no one was interested, eto'o value was damn near zero, probably only his wages for that year.

Messiah wrote:WTF, golden handshake for fucking what, shitting up th place for half and season and having a c**t of an agent.

Now wonder ibra loves his agent, the man keeps getting him big money

Fucking rosell, i thought he was a transfer geius

I dont think any golden handsshake is involved. Maybe just for the season on "loan"... But I agree, if he wants out and doesnt want to take a pay cut, then it is very much his problem not ours.

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.

I've heard nothing about a golden handshake in sport, so i hope its bullshit, because after getting mash at a cut price deal, this would just undo all of that.

30m + getting his salary of our books for one season, while still technically being a barca player = 40m, thats go considering we only paid 42m in cash, forget the whole messi situation, people can spin that anyway they want to.

fact is only 42m euros, left the clubs accounts

I see this deal as costing us something like 15m (one year of Ibra wages) + 40m (the transfer) against whatever Milan is paying plus the 10m or so of Etoo wages.

The reason why I am taking Etoos value out of the equation is the fact that we didnt want him, we couldnt sell him, so effectively he didnt have any value for us last year.

From Inters perspective this is very very different of course (and also from the perspective of the rest of the world I guess)

I agree with Bluenine that the accounting perspective makes little sense.. Take Pedro, who cost us something like 500k when he was bought. If were to be sold with one year left on his contract then his market value for sure is 100k or so..

Messiah wrote:

Fucking rosell, i thought he was a transfer geius

To be fair, it is a extremely difficult to offlload players that earn huge amounts of money (especially if they are under the special tax regime). Very few clubs can even think of signing these guys, because they are all very reluctant to take a paycut.

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.
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.

too many assumptions in there, no wonder you bankers fucked the works economy.


How can eto'o be worth 31m euros on the market, when no on was willing to buy that for him

i know your trying to make it seems like inter hoodwinked barca, which they did

but 110m euros on a player in one season, the club would have gone bust.


the clubs debts now stands at say 400m, now if you add up

49m we paid for ibra + his "golden handshake + the the 31m we had to write off for eto'o, thats 92m euros.

your saying basically then that one player alone, makes of 92m of our 400m euro debt. jesus christ.

Why is that not realistic Messiah ?

Your debt appears to be wholly from player transfers and wages. Ibra being the 'most expensive striker flop' of all time is taking up a huge proportion of that. I know you have had loads of transfer flops recently, but this was almost unprecendented in scale.

Milan have reached an agreement with Barcelona for the transfer of Zlatan Ibrahimovic, according to Sky Sport Italia.

The transfer saga appears to be nearing an end after agent Mino Raiola had earlier announced his client was very close to joining the Italian club.

The Spanish giants have reportedly agreed to a one-year loan, with the Rossoneri having the option to buy the player after that with instalments over four years.

It was originally believed to be three years, but the Blaugrana made the concession in order to offload the Swede's high salary as well as a potentially unhappy player.

The transfer fee will reportedly be in the region of €40 million. Meanwhile, he will sign a four-year contract and earn in the region of €8-9 million per season at San Siro.

It is expected that Ibrahimovic will be in Milan on Saturday and all the necessary paperwork will be filed to complete the transfer.

COTR wrote:Why is that not realistic Messiah ?

Your debt appears to be wholly from player transfers and wages. Ibra being the 'most expensive striker flop' of all time is taking up a huge proportion of that. I know you have had loads of transfer flops recently, but this was almost unprecendented in scale.

yes he is one of the biggest flops of all time, only 2nd to kaka

The clubs debt has it stands has been accumulating for what 4-8 years now (the laporta era, I would say long since he inherited a mess and seems as if he didn't clean it up as well as advertised) and you expect me to believe that in one year, one player added 92m, including eto'o "31m euros value" which has to be written off as debt, to our 400m euros debt.

I'm no wall street manager, but i did to financial accounting and that make no fucking sense what so ever

COTR wrote:Why is that not realistic Messiah ?

Your debt appears to be wholly from player transfers and wages. Ibra being the 'most expensive striker flop' of all time is taking up a huge proportion of that. I know you have had loads of transfer flops recently, but this was almost unprecendented in scale.

Funny thing is that everybody should have known that Ibra was a complicated character. I, for one, wanted him to continue, but he seems unwilling to be benched when he not performs. I agree that it has been a flop, but the most expensive in history, well I dont know. He scored some important goals, and bluenines calculations dont show the reality. Like Messiah says, how can Etoo be worth 31m, if he has one year left on his contract, unwilling to extend it, and nobody is willing to sign him at that price?

Messiah wrote:

COTR wrote:Why is that not realistic Messiah ?

Your debt appears to be wholly from player transfers and wages. Ibra being the 'most expensive striker flop' of all time is taking up a huge proportion of that. I know you have had loads of transfer flops recently, but this was almost unprecendented in scale.

yes he is one of the biggest flops of all time, only 2nd to kaka

The clubs debt has it stands has been accumulating for what 4-8 years now (the laporta era, I would say long since he inherited a mess and seems as if he didn't clean it up as well as advertised) and you expect me to believe that in one year, one player added 92m, including eto'o "31m euros value" which has to be written off as debt, to our 400m euros debt.

I'm no wall street manager, but i did to financial accounting and that make no fucking sense what so ever

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

Messiah wrote:

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.
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.

too many assumptions in there, no wonder you bankers fucked the works economy.

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

Messiah wrote:How can eto'o be worth 31m euros on the market, when no on was willing to buy that for him

i know your trying to make it seems like inter hoodwinked barca, which they did

but 110m euros on a player in one season, the club would have gone bust.


the clubs debts now stands at say 400m, now if you add up

49m we paid for ibra + his "golden handshake + the the 31m we had to write off for eto'o, thats 92m euros.

your saying basically then that one player alone, makes of 92m of our 400m euro debt. jesus christ.

Please do not confuse my business analysis with "accounting". Like I explained a few posts ago, it is NOT the same thing... and I am not trying to make anyone look good or bad, just using figures and stating all my assumptions - figures don't lie. You can change the assumptions, do the same analysis and get your estimate of the business loss.

Ok, let me now give you the good news, as you are worried about your books/debt. From an accounting perspective, your books will show that you lost about (wait for it) JUST EUR 1m from the Ibra saga.

This is how your book works:

Ibra's value last season:
49m that you paid Inter
+ 20 (asset value of Eto'o in Barca's books)
Total = 69m

Value of Ibra this summer = 69m - 20% amortisation (due to 5 yr contract) = 55m. Ibra remains a Barca player this season, and you still pay him "salary" of 12m (which is actually the golden handshake)

Value of Ibra next summer = 55m - 20% amortisation = 41m

You sell Ibra to Milan for 40m.

Total loss = 1m.

That probably explians why Barca were asking for a loan deal... coz if yoy had sold him this season, you would have had shown a loss of 15m (55m - 40m) + 12m (golden handshake) = 27m.