mdgoonah41 wrote:
Klaus wrote:

Maybe the rumours were right all along and we really couldn't afford (from a wage bill limit perspective) to pay both him and Sanchez massive new wages.

Then again, if that's true then why are we haggling for Mkhitaryan and possibly Aubameyang right now.

i dont buy those rumors. we've already shipped out a ton of wages without factoring in alexis, and we'll be shifting more off the books in the summer when mert and santi come off the books.

The only ones we've shipped out since the fall are Coquelin and Walcott, right? That's £160K per week in wages or thereabouts. It's basically enough to give Özil the wages he's been asking for for over a year. When we sell Alexis we might have room for one of Aubameyang and Mkhitaryan too in that case.

Klaus wrote:

Maybe the rumours were right all along and we really couldn't afford (from a wage bill limit perspective) to pay both him and Sanchez massive new wages.

Make sense. 

Wenger prefers a flat wage breakout, and it would seem that Sanchez has been posturing for a 250,000+ contract. With our wage restrictions there's no way we could have offered that to both Sanchez and Ozil. 

The problem with that thinking is that Ozil hasn't signed yet, so they're probably pushing him for something closer to 200,000 per week so that Ramsey doesn't break 200,000 on his next contract.

Klaus wrote:
mdgoonah41 wrote:

i dont buy those rumors. we've already shipped out a ton of wages without factoring in alexis, and we'll be shifting more off the books in the summer when mert and santi come off the books.

The only ones we've shipped out since the fall are Coquelin and Walcott, right? That's £160K per week in wages or thereabouts. It's basically enough to give Özil the wages he's been asking for for over a year. When we sell Alexis we might have room for one of Aubameyang and Mkhitaryan too in that case.

i posted this in the finances thread:

well, here is the math according to the alleged wage bill that is online in various places

lacazette - £100,000
kolasinac - £120,000 (i think this is wrong, it probably includes the sign-on fee he got because he came on a free)

thats £220,000 in.

coquelin - £55,000
walcott - £110,000
szczesny - £60,000
gibbs - £80,000
gabriel - £50,000
oxlade - £65,000

thats £420,000 out.

so we've already cut £200,000 from our wage bill. i think the only players who have extended are youth guys like AMN who are probably on £10,000 a week or less.

this summer, we'll be losing £530,000 combined for alexis, ozil, wilshere, cazorla, and mertesacker. we know cazorla and mert are likely done completely, so that is £160,000 for sure that is coming off the books. alexis is on £140,000 and hes definitely gone. so that is £300,000 in wages off the books. we need to give wilshere more money, and ozil huge money if he stays, which he might or might not. we also need to give ramsey a new contract if we want him to stay, since he only has 1 year left. if debuchy leaves, as expected, thats another £70,000 you can remove.

so counting walcott and coquelin leaving, our wage bill had dropped by £200,000 when you consider our transfer ins/outs. debuchy is another £70,000. alexis is £140,000 when he goes. mertesacker and cazorla are another £160,000. thats almost £600,000 if you add up the savings from the ones already gone, plus alexis, plus debuchy, plus cazorla, plus mert.

i havent read about this wage cap, but i cant imagine we are anywhere close to exceeding it, given that we've turned a big profit in the last year, based largely on our transfer dealings.

When you do your calculations, don't forget to add in the contracts as well for Income Statement purposes. A lot of the guys we are selling are on 2nd contracts or were acquired for very little, so we get minimal additional Income Statement savings on their contracts. Aubameyang would add around 300,000 pounds a week with just his contract, over and above his 170,000 pounds in wages. Potentially, Sanchez would remove 0 in depreciation for next year while Mkhitaryan could add over 150,000 pounds a week depreciation over and above his own 130,000 pounds a week wage. You can net out the tax benefits etc, but you also need to consider this.

well i think we are getting into the weeds here. i dont even understand the rule that people were referencing about the wage cap. but a player's wages and the transfer fee are counted separately on our books. they all go toward a bottom line, but they are separate items.

the wage bill is paid weekly and most players have a static salary outside of specific bonuses.

when we buy a player, for accounting purposes, their transfer fee gets broken down over the length of the player's contract for tax purposes. so if we pay £20m for a player and he signs a 4 year deal, we can count £5m per year for 4 years. in terms of profit/loss, i think the amount we actually pay and receive in a calendar year is what goes toward that. so, if we paid £45m for lacazette and we paid the whole thing up front, then we'd count -£45m for 2017. if we pay it in 2 yearly installments, we'd count half of that in 2017 and half in 2018.

but who the hell knows. anyway, our wage bill shouldnt preclude us from adding 3-4 world class players given everything else that is happening at the club.

It's important for valuation and Financial Fairplay purposes and is reflected in the income statement. Here, Uefa just wants to make sure we are buying and compesnating players in a sustainable fashion.

You are correct that what I have described will not have a relationship to the actual cashflow statement. That transfer fee will not appear as a straightline of 300,000 pound weekly payments. For example, we could, pay 60% today, 20% in a year and never pay the remaining 20% for whatever reason. That will show up as say, an immediate outflow of 36m Euros (60% of 60m Euros today) and then 12m Euros in 12 months of actual cash paid out from our bank account.

The club is swimming in cash. They could afford to match whatever Utd are offering Sanchez if they really want to. The choose not to.

I’d rather we didn’t match that stupid amount of money

I’m happy Alexis is going.

The wage cap is enforced by the PL, not UEFA. It basically stipulates that our wages can’t increase more than 7m in a year or 19 in 3 years unless from sources outside the PL central fund, I.e. TV money.

@lorddulaarsenal wrote:

I’d rather we didn’t match that stupid amount of money

I’m happy Alexis is going.

Same. He's old n busted.

His answer will probably be the gif of that goal.

Klaus, how many times have you watched that goal now? Don't need the exact figure- just to the nearest thousand.

What a crap deal.

The replies to Ornsteins tweets are worth it alone 😆

Replies to orny have become legendary. It's made even funnier by the fact he comes across so straight laced in all his interviews

goon wrote:

The replies to Ornsteins tweets are worth it alone 😆

Ffs! 😆

Too many lols in those replies 😆

I had no idea this was a thing. 😆

also, what a massive failure by wenger. its amazing he still has a job here

goon wrote:

The wage cap is enforced by the PL, not UEFA. It basically stipulates that our wages can’t increase more than 7m in a year or 19 in 3 years.

City get around that by offering massive signing on fees/renewal bonuses to players with their wages being relativity the same.

Walker/Bernardo/Ederson are on between 90-120k (various sources) and they all have between 5 and 6 year deals with huge signing on fees.

It's pretty ridiculous as a deal. On the other hand the way the market's going a semi-flop like Mkhitaryan could be a 40m proposition in summer easily. Just get him in and hopefully he upgrades at least the second string of our forward line. We obviously need someone else very soon and equally obviously the club knows it.

He did a strip tease? Utd are welcome to him.

It's going to be so much more painful if Ozil leaves on a free.

So if it came down to it Sanchez would have stayed if we met his demands of £500k a week in retrospect worth it?

Also it seems Ozil is in the same boat but wants something closer to £300k a week, worth it?

Ozil yes

Old n busted filth perve turnover machine - he’ll no

Pires has been scathing in his comments on the Sanchez/ Ozil / lack of investment situation.

Will be fun seeing Pogba and co demand £400k a week when their contracts are up to match the sex creep Sanchez

Imagine a footballer on £150k a week offering you £1k for a shag. This isn't a Chilean elite house you money grabbing idiot.

I'm more than happy to but be getting into this ££2mil a month pay bracket. They aren't worth it and we aren't wing anyway just stick to low balling and moving players on early. If Ramsey wants a big wages he can go as well.