Anzac wrote:

The way our operating model works is basically any 'loss' from one season is carried over to the next as part of the new season's operating cost, and the available finances are adjusted accordingly. Whereas any profits made are hoarded away and are not made available in general terms - although the BoD always said that funds were available if requested.

Anzac wrote:

We don't spend a penny without covering our operating costs for the entire season from day 1. Any finances made available is then used to cover all new business costs - fees, wages, infrastructure etc.

Anzac wrote:

It has everything to do with how we manage our finances each season - we cover the known bills and then take it from there.

That is not how businesses operate. Losses don’t just stack up at the end of year accounts then get moved into the following year. They are costs occurring throughout the year that we continually need to meet. The day to day, month to month, quarter to quarter management accounting of the club is something we’re unlikely to ever be privy to unless a rogue accountant with a grudge leaves the club. I can’t remember any analyses of the clubs finances that would support your assertions.

Juventus have rejected a €30m offer from Everton for teenage striker Moise Kean

Atletico Madrid has accepted to sell Griezmann to Barca in installments, but for 200m. [OndaCero]

This drama is draggggging.

Brentford sign Pontus Jansson from Leeds United

Nicolò Barella to Inter, here we go! The agreement is ready between Cagliari and Inter

[Sergio Valentin-esradio] : Manchester United agree to open negotiations with Real Madrid about Pogba

Bayern plan to sign both Werner and Callum Hudson-Odoi as free signings this upcoming season. [Kicker]

Bayern with the clasic free signings.

[Marca] Done deal: Luca Zidane will join Racing de Santander on loan.

AC Milan submitted their offer to Gremio for Everton. Agent Gilmar Veloz flew to Italy to present to Milan the counteroffer he took from Gremio president Romildo Bolzan

I like that Everton kid, shame we are not interested.

RB Leipzig offer £22.5million for Everton winger Ademola Lookman after seeing initial bid rejected

calciomercato: Manchester United midfield target Sergej Milinkovic-Savic has agreed to move to Juventus. Sergej has agreed to wages of £5.3million a season for six years with Maurizio Sarri's side.

So that's Ramsey, Rabiot, Savic, Pjanic, Blaise Matuidi, Sami Khedira, Rodrigo Bentancur and Emre Can .

Leonardo: Neymar can leave PSG for the right offer

Roma complete signing of Spinazzola

I'm aware that it is not your normal operating model. I've seen it reported a number of times down the years that the club does not spend anything before accounting for all the known operating costs first, as it's part of the criteria for maintaining zero debt other than that associated with the stadium.

The basic methodology is to take our on hand cash at the start of the season, subtract the total known operating costs, and the rest is the potential budget available for the year subject to any requirements to balance the books to make up for any previous shortfalls. A key point to generating profits is that we do not include any revenue that has not yet been received into the accounts, regardless of whether we know the amount to be received or not. This would include any fixed price revenues such as sponsorship or PL prize money regarding the equal share portion paid to every PL club. Much of our non match day revenues are paid at the end of the season, which where the surplus pre-tax profits are then banked.

The biggest issue I have is the failure to adjust our budget with regards to our known revenues that have not yet been received, particularly as most of these are received at the end of the season where they have no impact on our ability to spend on the team.

The other major issue still remains our lack of cash flow. Until this current TV deal 60% of our annual revenue was generated by our football operation - match day gates, prizemoney etc, and 40% was generated by non-football revenues such as commercial sponsorships and TV revenues. This ratio was the opposite of the average amongst the top20 clubs with the highest annual revenues in UEFA. The current TV deal was so large that our non-football revenues now amount to the greater part of our annual revenues, but only because of that single increase.
Since the move our major increases in revenue has come from such things as increased ticket prices, increased primary sponsorship via kit deals, and increased TV deals. There are usually small fluctuations based upon season prizemoney and player trading. The strategy seems to have been based around the capability to cover known season debt, and the lack of any appetite to do any more than what is needed as the bare minimum.

Interestingly I have seen a couple of articles that have said that part of the strategy by the BoD in recent times has been in response to the outcry about the continued generation of profits and lack of increased investment into the team. The response was to put into action a plan to decrease pre-tax operating profits by directly increasing player wages. This strategy started with the increased TV revenues but was not adjusted when we failed to retain top4/CL revenues. Instead the corrective action was placed upon the football operations to compensate or to correct.
This was much the same burden placed upon the football operations to generate extra cash flow during the initial decade of the stadium project, and in both instances the immediate solution was to use player trading to generate the extra revenues needed. The irony in this being that player trading on our scale is not sustainable, but was used to bail out our traditional values 'self sustaining financial model'. Our operating model has not been adapted or adjusted at any time since the stadium project commenced and now we are suffering the impacts of the failure to act in both a timely and appropriate manner from being penny wise - pound foolish.

Seriously wtf is Juventus doing collecting all those midfielders? Could Bentancur become available?

Juventus are not making sense here, signing Savic.

I understand strengthening the team, but Sarri will play with three of them only, what the hell will they do with the rest?

The worst thing is, trying to get one of the redundant one from them and they will charge you and arm and a leg for them.

Anzac wrote:

The basic methodology is to take our on hand cash at the start of the season, subtract the total known operating costs, and the rest is the potential budget available for the year subject to any requirements to balance the books to make up for any previous shortfalls. A key point to generating profits is that we do not include any revenue that has not yet been received into the accounts, regardless of whether we know the amount to be received or not. This would include any fixed price revenues such as sponsorship or PL prize money regarding the equal share portion paid to every PL club. Much of our non match day revenues are paid at the end of the season, which where the surplus pre-tax profits are then banked.

The biggest issue I have is the failure to adjust our budget with regards to our known revenues that have not yet been received, particularly as most of these are received at the end of the season where they have no impact on our ability to spend on the team.

Well, that's just not true - the club's own published accounting policies state that sponsorship, match day income and fixed components of broadcast revenue are spread evenly over the season or the life of the contract as you'd expect. The only amount recognised at the end relates to prize money based on where the club finishes at the end of the season.

Also cash =/= revenue.

They will sell what they don't need.
Juventus are operating in the Ronaldo window. They'll stock up all the talent they can while they have him, including a Savic or a De Ligt. That Champions League medal is critical

Meanwhile United are willing to pay Harry Maguire 250,000 pounds a week. That club makes way too much money. And this is without Champions League football. If they ever make it back they'll give martial 500,000 a week

I would take Betancur if they will sell for a reasonable fee. Good player