goon wrote:
What’s the benefit of a two year loan with an obligation to buy for the buying club? I’m assuming there will be a loan fee in the interim. Is it any different to a sale with a structured payment plan? Or is it for accounting/FFP reasons?
It’s an accounting issue - to create shared value.
Torreira’s contract expires in 3 years. He was bought for about £25m, so he is amortized at £5m annually pre tax. We would then book the entire sale at the end of the 4 years versus now after 2 years, which would mean we net it against £5m residual value vs £15m residual (of the original £25m). If we also become profitable by next season (unlikely), it will go into our tax shield. We can pass value onto the buyer in the shape of a a) staged payments and b) smaller fee.
As an aside, Fiorentina are said to be now looking at Bonaventura who has left Milan
