• About Us
  • Privacy Policy
Friday, March 31, 2023
Citi Sports Online
  • Home
  • News
  • Football
    • Premier League
    • Local Football
  • Ghana Premier League
  • Livescores
  • Sports Panorama
  • Videos
  • World Cup
  • AFCON
No Result
View All Result
  • Home
  • News
  • Football
    • Premier League
    • Local Football
  • Ghana Premier League
  • Livescores
  • Sports Panorama
  • Videos
  • World Cup
  • AFCON
No Result
View All Result
Citi Sports Online
No Result
View All Result

How Juventus and Barcelona both posted £50m-plus profit on Arthur, Pjanic deals

Fentuo Tahiru by Fentuo Tahiru
June 30, 2020
Reading Time: 3 mins read
Share on FacebookShare on TwitterShare via Whatsapp

In a summer where even the biggest clubs are cutting costs and holding back on big transfer sums, the deals between Barcelona and Juventus for midfielders Miralem Pjanic and Arthur are outliers.

Juventus have agreed an €80m (£73m) deal for 23-year-old Brazilian Arthur, with Barcelona set to bring in 30-year-old Pjanic for €70m (£64m).

On the surface the deals would appear to involved a simple exchange of €10m (£9.1m) between two clubs for whom that sum is a drop in the ocean, even in a post-Covid-19 world. But football finance expert The Swiss Ramble has revealed how both clubs could post £50m-plus profits from the transfers.

It may explain why the two European giants, who fight a perpetual battle to keep in line with UEFA’s Financial Fair Play regulations, are so keen on a swap which feels like it would have little net impact on their respective teams. That is to say that both are top class midfielders, and while Pjanic is a better player today, that is negated by the fact that Arthur is seven years younger.

Now on to the complicated bit, with full credit and thanks to The Swiss Ramble.

They start by explaining that when a player is bought, his purchase costs are spread over the years of his contract in a club’s accounts, whereas player sales are immediately booked to the accounts. This is the key to the whole equation.

Players are considered assets, so transfer fees are not fully expensed in the year they are purchased, and instead written off evenly over the length of a contract in a process called player amortisation.

Arthur was bought by Barcelona from Gremio for €30m (£27.4m) on a six-year contract two years ago, so the annual amortisation is divided by six to make €5m (£4.6m). The player’s ‘book value’ reduces by €5m (£4.6m) a year, so it is now €20m (£18.3m).

If Arthur is sold for €80m (£73m) this summer then, Barca’s profit would be €60m (£54.8m) on the books.

Moving on to Pjanic, he was purchased by Juventus for €35m (£32m) on a five-year contract in 2016, so the annual ammortisation was €7m (£6.4m). His book value reduced by €7m (£6.4m) a year, so was €21m (£19.2m) when he signed a two-year extension in 2018. Now on a five year-contract, the €21m (£19.2m) divided by five becomes €4.2m (£3.8m) a year. Two years on, his value on the accounts is therefore now €13m (£11.9m).

So if Pjanic is sold for €70m (£64m), crucially in a deal separate to Arthur’s, Juventus are able to record a €57m (£52.1m) profit on the 30-year-old.

For Barcelona, the benefit from such accounting might only be short term.

For now they will be able to add to their profits during a year in which the club are in dire financial straits due to the impacts of the coronavirus pandemic, which could help in terms of meeting Financial Fair Play requirements.

As The Swiss Ramble puts it: ‘It would improve profit for FFP purposes. I think UEFA would only intervene if the values were absolutely ridiculous.’

But in reality Juventus should benefit more in the long run, because in real cash terms they will recruit a player who is seven years younger for an outlay of just £9m.

We  may see plenty more of these sorts of deals with the financial difficulties presented to football clubs by the coronavirus pandemic.

Pjanic-Arthur is the very definition of a win-win situation.

Source: Daily Mail
ShareTweetSend
Previous Post

COVID-19: CAF to decide future of competitions on Tuesday

Next Post

Didier Drogba, El Hadji Diouf were never at my level – Samuel Eto’o

Related Posts

AFCON

TotalEnergies AFCON 2023 Cote d’Ivoire kick-off and Final dates confirmed

March 30, 2023
AFCON

Afena Gyan will be handed a call-up based on merit – Ibrahim Tanko

March 30, 2023
Football

RTU’s current status is a worry – Sey Mubarik

March 30, 2023
Football

“Relegation? Maxwell will do the job” – Legon cities deputy CEO Kwabena Onyina Asenso backs Maxwell Konadu

March 30, 2023
Shot by: Bernard Osei
For: Citi Sports
GHANA VS ANGOLA
Articles

Bernard Osei writes: Key lessons from Kumasi and Luanda under Chris Hughton’s leadership

March 30, 2023
News

Ansu Fati’s father wants him to quit Barcelona over lack of playing time

March 30, 2023
GFA President Kurt Okraku
Local Football

Fans boo GFA President at Black Meteors AFCON qualifier in Kumasi

March 29, 2023
Ghana Premier League

Hearts v Accra Lions: Richmond Ayi dropped after facial painting backlash

March 29, 2023
Load More
Next Post

Didier Drogba, El Hadji Diouf were never at my level - Samuel Eto'o

Top Stories

AFCON 2023 qualifiers: 6 major absentees from the new Black Stars squad

It’s my choice- Chris Hughton on not playing Dede Ayew against Angola

Crocked: Goalpost falls on Wollacott during Black Stars training session

AFCON qualifiers: Chris Hughton names first Black Stars squad ahead of Angola test

RSS Citi Podcasts

  • Eyewitness News, Tuesday, 28th March, 2023 March 28, 2023 Citi97.3
  • Citi Breakfast Show, Tuesday, 28th March, 2023 March 28, 2023 Citi97.3
  • Citi Trends, Tuesday, 28th March, 2023 March 28, 2023 Citi97.3
  • Citi Breakfast Show, Monday, 27th March, 2023 March 27, 2023 Citi97.3
  • Sports Panorama, Friday, 24th March, 2023 March 24, 2023 Citi97.3
  • Eyewitness News, Friday, 24th March, 2023 March 24, 2023 Citi97.3
  • Citi Breakfast Show, Friday, 24th March, 2023 March 24, 2023 Citi97.3
  • Citi Business Edition: Friday, 24th March, 2023 March 24, 2023 Citi97.3
  • Citi Breakfast Show, Thursday, 23rd March, 2023 March 23, 2023 Citi97.3
  • Eyewitness News, Wednesday, 22nd March, 2023 March 22, 2023 Citi97.3
Citi Sports Online

© 2019 Citi Sports Online

  • Home
  • News
  • Football
  • Ghana Premier League
  • Livescores
  • Sports Panorama
  • Videos
  • World Cup
  • AFCON

No Result
View All Result
  • Home
  • News
  • Football
    • Premier League
    • Local Football
  • Ghana Premier League
  • Livescores
  • Sports Panorama
  • Videos
  • World Cup
  • AFCON

© 2019 Citi Sports Online

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Citi Sports Cookie Policy
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT