Man City / Pep Defence Spending

comment by Winston (U16525)
posted 24 seconds ago
"I haven't lost 200m on the P&L though, as I've essentially just swapped one asset (my cash) for another asset (the players)"

You brought cash into it?

You've not swapped anything on your P&L.

The purchase fee is accounted for - most likely amortised.

I really don't know what you meant by the above. A player purchase would appear as a loss on the P&L... you're not swapping anything. That's not what a P&L does?
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I never said I did swap anything on the p&l, I was saying what the impact to it was. I was trying to prove to mamba why he was confusing p&l and balance sheet.

If I go and spend 200m on players in one season, then I don’t have a 200m loss on my p&l in that season. I have it amortised like you said.

If I’m looking at my net spend though, I would have it as I’ve spent it. That’s where he’s confusing net spend with net profit.

meltonblue (U10617)

Okay, I understand that last point certainly.

Just still not sure what you meant by the sentence I copied and pasted... maybe I am reading it wrong!

Whilst it wouldn't show a £200m loss on your P&L, it would still show a loss - for whatever proportion you're accounting for that year.

comment by Winston (U16525)
posted 1 minute ago
meltonblue (U10617)

Okay, I understand that last point certainly.

Just still not sure what you meant by the sentence I copied and pasted... maybe I am reading it wrong!

Whilst it wouldn't show a £200m loss on your P&L, it would still show a loss - for whatever proportion you're accounting for that year.
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Correct, I never argued it didn't. My point was it wouldn't show the total, that's why I said in a season.

Fair enough - it's the bit about swapping cash I picked up on, but perhaps out of context.

comment by Thorgen Kloppinson - Cosmic Refugee (U1282)
posted 36 minutes ago
So Sandy who said you guys spent a lot of money on the defence (fair comment)
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No, he said

comment by sandy (U20567)
posted 4 minutes ago
Mind you City are not alone in splashing the cash on defenders. Liverpool have spent over £150 million on Allison, VVD and Lovren.


If that's a fair comment to you, then each to his own.
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But I mean, whatever, it’s Sandy you take it with a pinch of salt. Have Liverpool spent a lot of money on the defence? Well obviously, but who cares - you then tried to justify it with net spend which is how this all came about.

What is the net spend for Liverpool’s defence?

Reading it back, I get the confusion and apologies, should have been better worded. The swapping cash bit was more about trying to explain all that's really happened at that point is I've gained an asset on the balance sheet and lost some cash on it too.

For the P&L, it's then just the depreciation of that asset I've gained.

I have never known anyone to then think that is what net spend is!

Net spend has always been discussed as the transfer fees in and out

comment by meltonblue (U10617)
posted 4 minutes ago
Reading it back, I get the confusion and apologies, should have been better worded. The swapping cash bit was more about trying to explain all that's really happened at that point is I've gained an asset on the balance sheet and lost some cash on it too.

For the P&L, it's then just the depreciation of that asset I've gained.

I have never known anyone to then think that is what net spend is!
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No worries buddy and yeh, completely agree - no idea where that's coming from!

At the end of the day we sold Coutinho and robbed Barca of 145m and invested that in two players who are better for the team than Coutinho was.

We got 73m for Solanke, Benteke, Ibe and Stewart and Klopp sold 46 players for 380m in the last four years.
There are talks of selling Brewster and Wilson for a total amount of 40m.

Man United and Man City can buy without selling players.

comment by Edinspur (U1109)
posted 12 minutes ago
comment by Thorgen Kloppinson - Cosmic Refugee (U1282)
posted 36 minutes ago
So Sandy who said you guys spent a lot of money on the defence (fair comment)
----
No, he said

comment by sandy (U20567)
posted 4 minutes ago
Mind you City are not alone in splashing the cash on defenders. Liverpool have spent over £150 million on Allison, VVD and Lovren.


If that's a fair comment to you, then each to his own.
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But I mean, whatever, it’s Sandy you take it with a pinch of salt. Have Liverpool spent a lot of money on the defence? Well obviously, but who cares - you then tried to justify it with net spend which is how this all came about.

What is the net spend for Liverpool’s defence?
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Justify what? I merely provided evidence to prove he was wrong. From there every poster has chose to interpret it as they please, even though my comment was a reply in line with the logic of the post I'm replying to.

That comment is now being held up to a rational standard, whereas I was not replying to a rational comment. You're excuse for this is "well it's Sandy", but then you proceed to criticise my reply. Something doesn't add up. If its just Sandy, then why does my reply have to stand up to scrutiny?

Of course Liverpool be spent a lot of money on their defence, but not much more than Spurs. Are Spurs splashing the cash on their defence?

Who cares? Sandy cares. If they don't care then why did they bother. Clearly a lot of people care.