Bedfordspurs
Bert Smith
IsakUntil who lost the ball??
IsakUntil who lost the ball??
Plus the structure of the payments (which tbf we rarely have any visibility on) can be a factor too.By the way, people have been discussing the £52m and wondering if we had had our pants pulled down.
If a player earns £100kpw for 50 weeks that is £5mpa salary basic. Thus a 5 year deal = £25m total wages basic before any clauses/appearance fees or whatever.
Likewise £200kpw is £10mpa salary basic, and 5 years is £50m.
So don't get so hung up on the £52m. Get hung up on whether we are paying him a wage package of £10m or £25m or £50m... yet people never mention that ongoing cost.
Same for every other player, look at the wages, not the fee.
If we had saved £10m on the fee and will pay £20m extra on the wages over 5 years, many (uninformed) supporters would be happier!
This only really affects cash flow rather than the cost of the deal.Plus the structure of the payments (which tbf we rarely have any visibility on) can be a factor too.
52mil paid over 3-5 years is not the same as 52mil paid in one lump sum today.
Unless you can get a significant ROI on the outstanding balance before the remaining debt payments become due. A simple 10% annual return on, say 30 mil, already brings the total relative amount paid down in the 40 millions.This only really affects cash flow rather than the cost of the deal.
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