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Martyn Waghorn - gone to Coventry City


Heisenberg

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Really glad this story comes with such a helpful visual. It was unclear from the first sentence exactly what was happening but now I can see that Cardiff's plan is for him to leave Derby - hence the big red cross - and make a move to Cardiff, as referenced by the big green arrow, pointing to Cardiff City's badge.

For those of you unsure what would happen next, he'd sign a contract with Cardiff, hence the cartoon image of a contract in the bottom left.

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3 minutes ago, Ramarena said:

I thought Waghorn and our other out of contract players had already all lined up deals months ago...........that’s why they couldn’t be bothered and explained why we were struggling???????

The slacker, should have had a hat trick on the final day

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I had to check the spelling of amortisation and my understanding of it isn’t much better but am I right in thinking a player leaving on a free who we bought for £5million would go down as a £5million loss in our accounts for this year? Or is better now they’ve made us change our practice? 

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1 hour ago, Jram said:

I had to check the spelling of amortisation and my understanding of it isn’t much better but am I right in thinking a player leaving on a free who we bought for £5million would go down as a £5million loss in our accounts for this year? Or is better now they’ve made us change our practice? 

depends on the contract length and the method used.  I guess a lot depends on the exact timings but roughly;

EFL method - 5 year contract £1m loss in final year.  they taken a £1m loss every year of the contract

DCFC unique method.  - Club estimates the sell on value as x and reduces the purchase price y over the period of the contract.  We don't know what x is.  Say if they think they will get £4m sell they will reduce it by £200k pa.  Problem is when you get to the 4th year and haven't sold him the club would suffer a loss of £4.2m in the final year. 

The DC did a better version of this and is worth a read as it may provide a better understanding

As for whether it is better now, you can see that if we had to recalc using the EFL method it would have significant negative impact in all but the final year of the contract.  The final year would be a massive benefit trouble is I'm worried that this benefit arrives in the same year as the stadium sale

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21 minutes ago, Spanish said:

DCFC unique method.  - Club estimates the sell on value as x and reduces the purchase price y over the period of the contract.  We don't know what x is.  Say if they think they will get £4m sell they will reduce it by £200k pa.  Problem is when you get to the 4th year and haven't sold him the club would suffer a loss of £4.2m in the final year. 

I don't think that's quite right, if DCFC think the transfer value with 1 year remaining is £4m then they'll have charged 4 x £250k over the first 4 years, then £4m in the final year.

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3 minutes ago, Carnero said:

I don't think that's quite right, if DCFC think the transfer value with 1 year remaining is £4m then they'll have charged 4 x £250k over the first 4 years, then £4m in the final year.

hence why I said roughly for the explanation.  I guess the key is the anniversary date of the contract and where that fits into the accounts date.  The amortisation is also stated to be on a 6 monthly basis but none of this is documented so potentially there could be 2 adjustments in a year, devil is in the detail, which there is none

Edited by Spanish
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39 minutes ago, Spanish said:

DCFC unique method.  - Club estimates the sell on value as x and reduces the purchase price y over the period of the contract.  We don't know what x is.  Say if they think they will get £4m sell they will reduce it by £200k pa.  Problem is when you get to the 4th year and haven't sold him the club would suffer a loss of £4.2m in the final year. 

Makes you wonder why choose this method and then buy so many players with little resale value!? How do you prove the residual value of players that don't get sold but let their contract run out?

Edited by RoyMac5
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4 minutes ago, RoyMac5 said:

Makes you wonder why choose this method and then buy so many players with little resale value!? How do you prove the residual value of players that don't get sold but let their contract run out?

They all have resale value when we buy them. It's when they start playing for us that that resale value disappears. You only have to read the transfer threads when we sign a player. The vast majority are good signings, with only the freebies and lower league players being ridiculed. Unfortunately those are the only ones that have been remotely succesful either on the pitch or on resale.

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1 minute ago, richinspain said:

They all have resale value when we buy them. It's when they start playing for us that that resale value disappears. You only have to read the transfer threads when we sign a player. The vast majority are good signings, with only the freebies and lower league players being ridiculed. Unfortunately those are the only ones that have been remotely succesful either on the pitch or on resale.

Yes, we need to either sell when we're playing well, or buy cheaper players. 

BTW, can anyone else see anything on @Heisenberg's post? All I see is a blank space.

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9 minutes ago, RoyMac5 said:

Makes you wonder why choose this method and then buy so many players with little resale value!? How do you prove the residual value of players that don't get sold but let their contract run out?

 

1 minute ago, richinspain said:

They all have resale value when we buy them. It's when they start playing for us that that resale value disappears. You only have to read the transfer threads when we sign a player. The vast majority are good signings, with only the freebies and lower league players being ridiculed. Unfortunately those are the only ones that have been remotely succesful either on the pitch or on resale.

However, when you run a business your corporate governance should reflect your experiences.  ERV is a sound method but it is ducking risky.  2 parts of our recruitment process that seem s dodgy the recruitment and the sale before the contract ends.  Shambolic

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