Big Willie wrote:
Were you not adamant that Arsenal do not spend known revenues before they actually come into the club. The additional wage headroom that's freed by Ozil's departure should not have been allocated to anyone else if that is the case.
Wages are allocated from the revenues received (otherwise they could not be paid), as opposed to being known revenues that have not yet been received into the club accounts. Reducing wages or operating costs is not generating additional revenue that has not been received or already allocated, rather it is freeing up those savings made to be able to be allocated elsewhere, even if still within the wages.
I think those player deals were made based upon the game plan of the intended clear out last summer that didn't eventuate. If so it effectively increased our expenditure in relation to our wages and operating costs from our extant revenues, which is unsustainable in the current financial reality.
An example of what you are describing is when the rest of the PL spent the 'known' portion TV revenues on transfers and wages ahead of receiving them. The potential danger in doing so is if the TV partner then collapses themselves as seen with the SPFL & Setanta.
LUFC is the example of spending potential/unknown revenues you don't have, based on speculation of achieving intended outcomes as a result of that spending, and then failing to achieve those outcomes.
