£20million here £20million there and lets spend another £18million well we are at it.
Is this reckless spending?
Its important to remember the newspapers are quoting headline figures which may or may not be reached depending on how the player/team performs and what the conditions of the transfer stipulate in connection with that performance. An example of this would be number of appearances.
Also the payment is not usually made up front in one big lump but over a number of seasons. I recall that when Leeds went into financial meltdown Man Utd offered to pay Leeds the balance of the transfer fee for Rio Ferdinand earlier if they could pay a lesser amount which I believe Leeds agreed to. This all happened some time after Rio had been playing for Man Utd.
How much income will Leeds be getting to finance the transfers? As an example last season from TV rights alone Sheff Utd recieved over £132million. Top earners were Liverpool with over £174million
https://www.planetfootball.com/quick-reads/club-by-club-a-breakdown-of-the-2019-20-premier-league-prize-money/
Then there is the shirt sponorship deal which was biggest in Leeds history.
There are other income sources such as Clipper.
Currently matchday income from ticket sales is curtailed but once that resumes there is millions more to be added to the kitty.
Then off of all that will come transfer fees, players wages etc.
So the transfer fees look like approaching £100million but given the income and the fact that payment is not all up front then it looks like the amount being spent is not reckless but a reflection of just how much money being in the premiership generates.
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https://www.gq-magazine.co.uk/article/what-really-goes-on-behind-the-scenes-of-a-big-football-transfer#:~:text=Transfer%20fees%20are%20usually%20paid,investment%20they%20will%20be%20making.
"Transfer fees are usually paid in instalments
Any club wanting to invest huge amounts in a superstar player needs to consider the total investment they will be making. When newspaper headlines quote a transfer fee of £35m, many fans would be forgiven for thinking that a buying club transfers £35m to the selling club on the day of the transfer and that is that. In fact, the reported total headline transfer fee is often different from the actual amounts paid to the selling club.
Let’s suggest that Liverpool pay £35m for a Brazilian international player. The transfer agreement may state that Liverpool pay:
• £15m up front. • £5m on both the first and second anniversaries of the player’s transfer. • £5m if the player makes 50 appearances for Liverpool. • £5m if the player wins the Champions League and the Premier League with Liverpool (£2.5m per win).
If the player doesn’t make 50 appearances for Liverpool and the club doesn’t win the Champions League or Premier League, then the club will only ever pay £25m to the selling club out of a headline reported figure of £35m."
Transfer Fees: Can Leeds Afford Them?
posted on 2/10/20
Radz doesn't strike me as a reckless owner.
Marcelo knows the players he wants. Orta knows
how to find them (based on recent evidence).
Roll that all up together and I think we have a
group working together in theirs and the club's
best interest. So, yes, I believe we can afford
what we're doing right now.
posted on 2/10/20
I haven’t seen spending like this at Leeds since Peter Risdale was in charge.
What could possibly go wrong?
posted on 2/10/20
If you watch all the interviews with the likes of Kinnear et al on the likes of youtube etc- finance and FFP are always a major part of the discussion.
Business wise AR is very savvy and one further thing that makes me feel relaxed is that I haven't seen a fish tank being delivered or Seth Johnson's agent hovering around LS11.
posted on 2/10/20
think Radz track record with us speaks volumes..
he's always been cautious, we've played the loan market well recently too.. now we're in the prem you have to stay there, think Beilsa has a huge input in it too, which is good enough for me.
posted on 2/10/20
comment by Jobyfox (U4183)
posted 24 minutes ago
I haven’t seen spending like this at Leeds since Peter Risdale was in charge.
What could possibly go wrong?
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did laugh out loud at that mate - very good, top bantz
posted on 2/10/20
The whole house of cards will come crumbling down.
Nah it will be alright. Probably.
posted on 2/10/20
comment by The Spanish Italians - it’s all coming h... (U21595)
posted 1 hour, 31 minutes ago
comment by Jobyfox (U4183)
posted 24 minutes ago
I haven’t seen spending like this at Leeds since Peter Risdale was in charge.
What could possibly go wrong?
-----------
did laugh out loud at that mate - very good, top bantz
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Thanks for taking it in the spirit it was intended.
I was actually only here because I was hoping you were spending a bit more on Demarai Gray from us who I’ve seen you linked with.
posted on 2/10/20
The spending will only likely become an issue if you get relegated, which I don't really foresee to be honest.
posted on 3/10/20
Fox... no worries pal, love the bantz