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Would relegation be that bad?

Finney Is Back said:
£200m of transfer fees yes (though I don't see anyone paying £60m for VDV, nor £50m for Kudus but we'll all have our own different valuations)

The issue is that it is not £200m of profit as we would have to write off their current net book values, which for the players you mention are about: Vicario: £10m , Romero: £20m, Porro: £15m, VDV: £17m, Kudus: £46m, Veliz: £6m, Solomon: £0

So the £200m of transfer fees actually only cuts our loss by about £85m. Some of those players are also on long contracts and have high loyalty bonus payments that we would need to pay if selling them, therefore cutting our loss by even less (by at least £10m I'd say and probably more).....

I don't think selling/releasing those players get anywhere near bringing the wage bill down below £100m either. Those players you list as being sold or leaving probably make about £40m to £45m of difference to the wage bill versus this season. In year 23-24 we had wage costs of £222m. The wage bill this season is rumoured to be around £268m. Even if we take the lower, known, number of £222m from 23-24 we're only down to around ~£180m if jettisoning those players you mentioned.
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£268 which cuts by at least 40% with the relegation clauses so £160M with another £15M in players already off the books next season. So your at £145M before anyone leaves.

Not all contracts will have loyalty bonuses and if they do they would already amortised in the accounts. If a player requests a move they would forfeit that bonus as well.

Romero amount would be way less now due to the extension as well.
 
robp135 said:
£268 which cuts by at least 40% with the relegation clauses so £160M with another £15M in players already off the books next season. So your at £145M before anyone leaves.

Not all contracts will have loyalty bonuses and if they do they would already amortised in the accounts. If a player requests a move they would forfeit that bonus as well.

Romero amount would be way less now due to the extension as well.
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It doesn’t cut by at least 40% at all. We HOPE we have such clauses but have no idea whether we do or not. If we do have clauses in place then we have no idea on the amount. I think 40% is our best bet, our worst bet is 0%

Loyalty bonuses tend to be quite substantial and can easily make up 20 to 30% of a player’s contract. Almost all player contracts have loyalty bonuses as part of the wage deal. If considering getting a players wages of £100k a week off the books, that £100k could easily contain £25k of loyalty bonuses. If the player has 2 years of their contract left then the £5m cost saving you think you’re getting in year 1 actually becomes £2m in year 1 (but does then become a further £3m saving the year after).

Yes, loyalty bonuses are usually only voided if a player moves after putting in a written transfer request, which is why written transfer requests are so rare in football. Remember that we will need to sell several of our high wage players, and they will know that, so we may not see many written transfer requests go in.

Typically, remaining loyalty bonuses will be negotiated down a bit when a player is sold, especially if the player is moving to a club that is upping his wages. If the player is not increasing his wage when moving, then clubs will typically end up having to honour the full amount for the move to happen. Either way they absolutely are a significant cost to consider and not something to,just brush off as irrelevant.

You’re right about Romero, he joined in 2022 on an original 5 year deal so will have around €11m net book value at the end of this season (I had thought he signed a 7 year deal). Must confess that I’m not sure whether clubs just amortise a players transfer fee over the original contract length (capped at 5 years for players signed after 2025) or whether they take the remaining net book value and amortise that over the new contract length if a player signs a new deal - I suspect the former but will have to ask.
 
Got to live the speculation, guess work and maths in this thread
Relegation would be huge…. Worse than ever before for many may reasons
And these clown shoe owners will never back the club IMO… they don’t have the cash needed
 
Finney Is Back said:
It doesn’t cut by at least 40% at all. We HOPE we have such clauses but have no idea whether we do or not. If we do have clauses in place then we have no idea on the amount. I think 40% is our best bet, our worst bet is 0%

Loyalty bonuses tend to be quite substantial and can easily make up 20 to 30% of a player’s contract. Almost all player contracts have loyalty bonuses as part of the wage deal. If considering getting a players wages of £100k a week off the books, that £100k could easily contain £25k of loyalty bonuses. If the player has 2 years of their contract left then the £5m cost saving you think you’re getting in year 1 actually becomes £2m in year 1 (but does then become a further £3m saving the year after).

Yes, loyalty bonuses are usually only voided if a player moves after putting in a written transfer request, which is why written transfer requests are so rare in football. Remember that we will need to sell several of our high wage players, and they will know that, so we may not see many written transfer requests go in.

Typically, remaining loyalty bonuses will be negotiated down a bit when a player is sold, especially if the player is moving to a club that is upping his wages. If the player is not increasing his wage when moving, then clubs will typically end up having to honour the full amount for the move to happen. Either way they absolutely are a significant cost to consider and not something to,just brush off as irrelevant.

You’re right about Romero, he joined in 2022 on an original 5 year deal so will have around €11m net book value at the end of this season (I had thought he signed a 7 year deal). Must confess that I’m not sure whether clubs just amortise a players transfer fee over the original contract length (capped at 5 years for players signed after 2025) or whether they take the remaining net book value and amortise that over the new contract length if a player signs a new deal - I suspect the former but will have to ask.
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Ornstein is about as reliable a source as you can get and he said most players have a 50% reduction. So placing a 40% one is being conservative.

I think with the players already off the books and Vicario, Romero, VDV, Dragusin, Richarlison sold we would be able to manage. The rest we can hold out for the true value.

This is also mixing up PSR rules with actual financials and treating them as the only relevant numbers. The cash flow from the money recieved and the reduction in the wage bill will be massive for the club.
 
Lemonade Money said:
See this sort of thing quite regularly. People giving the goalie stick, and the goalie having none of it.
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He was getting pelters all game, and his side went 2-0 down, they look set for relegation now.

No excuse at all but I get why he cracked.

The fan was dragged out by the stewards and hopefully gets a life ban.
 
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