Chelsea Transfers

[Superblue 6,372]

I may be wrong with this but my understanding is Enzo has a buyout clause like the ones in Spain, not a simple release clause.

For FFP purposes, because a buyout clause is between player and club and the player has to activate it, the buying club giving the money to the player to activate it isn't treated the same way as usual transfer fees that are amortised over a contract length. They are instead treated as the full amount in that first year for FFP purposes.

If that interpretation is indeed true, there's absolutely no chance of us 'simply' activating the clause to guarantee his signing, and hence why Benfica have got negotiating power and they obviously know it too. 

[Vegetable 830]

17 minutes ago, TheHulk said:

Pretty sure this is what happened, it' something the clueless American would do to pretend he is smart and now Benfica obviously pissed had said fuck this shit pay release clause or nothing. Moronic to say at least from a billionaire who made his fortune to be so dumb.

I do not believe a single word of this tweet. Multi million dollar business is, after all, business, not 8 year old prima donnas who can afford to walk away because they didn't like the tweet or felt touched with offer. Media buzz is just another way of negotiation, they will pull all the tricks but it all comes for both sides to feel stuffed with cash in a right way.

I'm getting highly sceptical of our new ownerships, but in this case if "american bad", it's only due to his willingness to overpay for unimpressive players, making it more difficult for us in the long run.    

[Vesper 31,106]

43 minutes ago, MoroccanBlue said:

An utter miracle we won the CL under Tuchel after this catastrophic array of poor transfers since 2017. 

THIS

and because of that miracle, we also finally the Super Cup (under Roman, we had won it before) and for the first and only time, the World Club Championship

BUT

we BARELY won those games (other than the semi of the FWCC), against vastly poorer teams.

We also have lost 3 FA Cup finals in a row, plus the League Cup again last season (both to fucking Pool)

we will not have a new stadium finished for 5 to 7 years I wager, and until I see plans, I have doubts it will be sufficient

with Boehly and Co now shtting away quid like they are, we will soon pass the 1 billion quid pissed away since 2016/17 mark.

we are in fairly dire straits atm

[Vegetable 830]

18 minutes ago, Superblue said:

I may be wrong with this but my understanding is Enzo has a buyout clause like the ones in Spain, not a simple release clause.

For FFP purposes, because a buyout clause is between player and club and the player has to activate it, the buying club giving the money to the player to activate it isn't treated the same way as usual transfer fees that are amortised over a contract length. They are instead treated as the full amount in that first year for FFP purposes.

If that interpretation is indeed true, there's absolutely no chance of us 'simply' activating the clause to guarantee his signing, and hence why Benfica have got negotiating power and they obviously know it too. 

Care to elaborate on this?

Of what I understand, the 120 mil release clause in typical Spanish manner is ridiculous, compared to actual player's worth, to prevent other clubs activating it without original club's consent. We could just route this 120 + tax through Enzo and run, but we want to avoid a single expense of this size, so we are negotiating for a sum sizably bigger, than said clause, but in installments. So given no immediate interest from other clubs we aren't really negotiating for some incredibly great deal for us, are we? Don't Benfica feel bit too powerful here?

Edited January 4, 2023 by Vegetable

[Vesper 31,106]

48 minutes ago, Vegetable said:

Just a remainder that we are having a Sporting Director in place, who seems to be no fool and surely he has some say in transfer business now. If he'd rate Enzo enough to pay 130 mil and not complain, TB would pay and not complain, I guess

Unless I misunderstand your post, we do NOT have a sporting director yet, that is the last unfilled position, as I have posted on multiple times.

 

[Superblue 6,372]

Just now, Vegetable said:

Care to elaborate on this?

Of what I understand, the 120 mil release clause in typical Spanish manner is ridiculous, compared to actual player's worth, to prevent other clubs activating it without original club's consent. We could just route this 120 + tax through Enzo and run, but we want to avoid a single expense of this size, so we are negotiating for a sum sizably bigger, than said clause, but in installments. So given no interes from other club we aren't really negotiating for some incredibly great deal for us, are we?

A standard release clause means a club can activate the clause by going to the selling club and paying the clause. As this is deemed a transfer fee it's amortised over the players contract like a normal transfer. i.e. if a player has a release clause of £50m and we activate it and sign him on a 5 year contract then we include £10m per season in the accounts for the next 5 years. If after 3 years, he extends for another 5 years then the remaining £20m of the transfer fee left to amortise is now spread again over a new five year period, etc, etc.

These buyout clauses in Spain are mandatory agreements between player and club to allow a player to buy himself out of a contract. In order to activate these, the player must do so and therefore the buying club must give the money to the player to do it. This payment to the player isn't considered a transfer fee in the same sense and therefore it would be recorded as a one off expense in the year it happens. So going back to above example if we paid a player £50m to buy himself out of his contract then it's £50m on the books in that year and nothing then for the next 4 years. 

The way it was being reported, Enzo's clause sounds the same as the ones in Spain, i.e. he needs to activate it and this is a massive differential for FFP purposes.

[didi007 69]

47 minutes ago, Vegetable said:

Wonder what would Benfica gain from "decision not to sell" - he is hot after WC, it's risky to think he will be worth 200 million in summer. Much more probable it will be more like 80. No other offers to fulfill the clause of what we know, so what's the plan here?

Last window TB shown nothing but desperation and they know it, so maybe no harm in pulling off for a week.

Benfica are league leaders and still in the champions league . Its in their interest to hold on to their best player until the summer to win the league. Also, who knows how far they could go in the CL? This would  be their first league title which is worth more than 200m

[TheHulk 2,647]

Just now, didi007 said:

Benfica are league leaders and still in the champions league . Its in their interest to hold on to their best player until the summer to win the league. Also, who knows how far they could go in the CL? This would  be their first league title which is worth more than 200m

This explains it best but even so it's beyond dumb this isn't done. You can negotiate a 120m payment with 2 installments one 100 the other 20 and it would be treated like a transfer fee so someone fucked up. I refuse to believe Benfica wanted the buyout only, they were willing to talk until today..

[MoroccanBlue 5,399]

Best we simply wait and see what pans out. A defeat tomorrow, and a heavy one, could open up a few things. 

[Vesper 31,106]

37 minutes ago, TheHulk said:

Pretty sure this is what happened, it' something the clueless American would do to pretend he is smart and now Benfica obviously pissed had said fuck this shit pay release clause or nothing. Moronic to say at least from a billionaire who made his fortune to be so dumb.

just an FYI

the Record (Portugal( is an absolute SHIT source

Don Balón level shit

not saying we are not blowing this deal, but the Record is not a thing to put a lot of faith in for info

[Vegetable 830]

5 minutes ago, Vesper said:

Unless I misunderstand your post, we do NOT have a sporting director yet, that is the last unfilled position, as I have posted on multiple times.

 

True, thought Vivell is filling for this instead TB as he is coming from more of a recruitment background after all

[didi007 69]

1 minute ago, TheHulk said:

This explains it best but even so it's beyond dumb this isn't done. You can negotiate a 120m payment with 2 installments one 100 the other 20 and it would be treated like a transfer fee so someone fucked up. I refuse to believe Benfica wanted the buyout only, they were willing to talk until today..

Chelsea lowered their offer and thet pissed them off!

[Vesper 31,106]

Just now, Vegetable said:

True, thought Vivell is filling for this instead TB as he is coming from more of a recruitment background after all

Boehly is still very involved, unfortunately

 

 

[TheHulk 2,647]

1 minute ago, Vesper said:

just an FYI

the Record (Portugal( is an absolute SHIT source

Don Balón level shit

not saying we are not blowing this deal, but the Record is not a thing to put a lot of faith in for info

These guys say the same, we lowballed and now they only want buyout. Let's face it there is no denying the owner is a clown at this point.

[Superblue 6,372]

1 minute ago, TheHulk said:

This explains it best but even so it's beyond dumb this isn't done. You can negotiate a 120m payment with 2 installments one 100 the other 20 and it would be treated like a transfer fee so someone fucked up. I refuse to believe Benfica wanted the buyout only, they were willing to talk until today..

Jake Cohen has proven very reliable with things like this and supports my own understanding of how it works for FFP purposes.

The fact is on the assumption of the above, we would never have entertained activating the release clause and as a result Benfica could quite easily have just plainly refused to come to the negotiating table. The fact they have would suggest that broad terms have or are close to agreement with regards to fee, etc. The payment structure isn't impacting FFP, but has a significant impact on cashflow, borrowings, interest, etc. It's clearly the biggest point of negotiation and quite obviously we'll want to pay less up front and Benfica will want more. Just because an agreement hasn't been reached yet doesn't mean one won't. Benfica won't want to keep Enzo now with his head turned if they can help it, and we want the player. But like I said previously a deal of this magnitude is not being resolved and signed off on after one round of talks.

[Vegetable 830]

We offered 130, so apparently they've got so pissed off, they lowballing themselves 🤪

Seriously thinking about picking up twitter "sport journalism" in summer. I won't be much of a tik-toker, but this bullshit for clicks from muh insider sources I can produce all day long.

[Vesper 31,106]

3 minutes ago, TheHulk said:

These guys say the same, we lowballed and now they only want buyout. Let's face it there is no denying the owner is a clown at this point.

IF that did happen, we are absolutely fucked going forward, as no club will trust our word

we have 60 billion plus backing us and years of sports ownership

I cannot believe that we would be THAT stupid

[TheHulk 2,647]

5 minutes ago, didi007 said:

Chelsea lowered their offer and thet pissed them off!

Benfica only needed to accept it in installments 2,3 100+20, 40+40+40 it's irrelevant since it counts the same towards ffp but the American had to act intelligent and low ball.

[TheHulk 2,647]

1 minute ago, Vesper said:

IF that did happen, we are absolutely fucked going forward, as no club will trust our word

we have 60 billion plus backing us and years of sports ownership

I cannot believe that we would be THAT stupid

It did happen, why do you think Benfica was willing to negotiate and now out of a sudden want the buyout? 

[MoroccanBlue 5,399]

Tragic if true.