Shows how dreadful a lot of our recruitment has been, Fullkrug bought for €27m 2 years ago, now maybe worth €5m (and was on loan last season), Alvarez bought for €38m 3 years ago, now maybe worth €15m (also on loan last season), Ward-Prowse, bought for €35m 3 years ago, Transfermarkt valuation of €5m (also on loan last season).
That's €100m worth of assets, devalued to about €25m, and out on loan last season when we were so bad we got relegated.
Thats not how football accounting works according to “The Price of Football” by Kevin Day and Kieran Maguire
A player’s asset value is calculated by dividing his transfer fee by the length of his contract, e.g. we signed Fullkrug for 27m 2 years ago on a 4 year contract, so he’s only valued at 13.5m and if we sell him for 5m we will be making a 8.5m loss
The book actually mentions Mark Noble who by football accounting logic was worth zero as we signed him as a kid so never paid a transfer fee for him
I'm well aware, as an ex-accountant, of how football accounting works, but a club like ours can ill afford to make these sort of transfers, they're just not sustainable in the long term.
It's not just breaking even on the book value of an asset we need to be concerned with, it's the fact that we need to make a profit in the transfer market if we're to progress as a club, and transfers like this don't in any way move us forward.
Comments
Struggled on loan last year, although in 24/25 he did a good job at Huddersfield in League 1
Think this move is good for him, he needs consistent gametime to develop
A player’s asset value is calculated by dividing his transfer fee by the length of his contract, e.g. we signed Fullkrug for 27m 2 years ago on a 4 year contract, so he’s only valued at 13.5m and if we sell him for 5m we will be making a 8.5m loss
The book actually mentions Mark Noble who by football accounting logic was worth zero as we signed him as a kid so never paid a transfer fee for him
It's not just breaking even on the book value of an asset we need to be concerned with, it's the fact that we need to make a profit in the transfer market if we're to progress as a club, and transfers like this don't in any way move us forward.