CONFIRMED Cameron Archer signs for the Blades - 4 year contract

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is there a presumption that villa have a pay back, whatever or does the buy back become null and void if united stay up? Just asking
 

Balham Blade said:
It's an £18m purchase with a £17m buyback if the numbers above are to be believed. It's fairly straightforward if you separate out the cashflow, balance sheet and P&L items. I've left out the balance sheet below as that gets messy with contingent liabilities.

Year ending June 30, 2024
P&L
Villa record a £18m profit on sale of an asset
United record an amortisation cost of £4.5m in the year (assuming a 4 year contract, £18m divided by 4 is £4.5m)
Cashflow
United remit £9m to Villa


Year ending June 30, 2025 if we stay up
P&L
United record an amortisation cost of £4.5m in the year (assuming a 4 year contract, £18m divided by 4 is £4.5m)
Cashflow
United remit £9m to Villa


Year ending June 30, 2025 if we go down this season
P&L
United record a £3.5m profit on sale of an asset (£17m income less £13.5m remaining value)
Villa record a £4.25m amortisation charge (again, assuming a 4 year contract)
Cashflow
Villa remit £8m to United
Click to expand...
I don't think those numbers are correct.

I believe the contract will be along the lines of:
Blades agree 18m deal with Villa for purchase
Buyout clause a:
If Blades are relegated Villa obliged to purchase Archer for 20m
Buyout clause b:
If Blades are not relegated Villa has an option to buy Archer for circa 30m+

That would change the above as the repurchase of Archer would be in year 2 registering a 2m+4.5m profit for Blades if you are relegated
 
Begley said:
I don't think those numbers are correct.

I believe the contract will be along the lines of:
Blades agree 18m deal with Villa for purchase
Buyout clause a:
If Blades are relegated Villa obliged to purchase Archer for 20m
Buyout clause b:
If Blades are not relegated Villa has an option to buy Archer for circa 30m+

That would change the above as the repurchase of Archer would be in year 2 registering a 2m+4.5m profit for Blades if you are relegated
Click to expand...
So if we go down, Villa have to buy Archer no matter what? He might have a crap season or they may not want him next summer.
 
Begley said:
I don't think those numbers are correct.

I believe the contract will be along the lines of:
Blades agree 18m deal with Villa for purchase
Buyout clause a:
If Blades are relegated Villa obliged to purchase Archer for 20m
Buyout clause b:
If Blades are not relegated Villa has an option to buy Archer for circa 30m+

That would change the above as the repurchase of Archer would be in year 2 registering a 2m+4.5m profit for Blades
Click to expand...
I don't think anyone outside of a very small group knows the exact numbers. The point is that the sale will be registered as £18m to allow Villa to maximise the benefit for FFP but half of the cash will be contingent on us staying up.

If you're right and it's £20m buy back then the profit on disposal for United rises to £6.5m. (£20m sale less £13.5m NBV). Cash from Villa to United would be £11m.

That's all moot anyway as Archer's 9 goals are going to keep us up :D

Bill puntin said:
What happend if we stay up and villa go down. ?
Click to expand...
Presumably we'll owe them the outstanding £9m and they'll have the option to purchase for an extraordinary amount of money, one I'd imagine they wouldn't take up.
 
Begley said:
I don't think those numbers are correct.

I believe the contract will be along the lines of:
Blades agree 18m deal with Villa for purchase
Buyout clause a:
If Blades are relegated Villa obliged to purchase Archer for 20m
Buyout clause b:
If Blades are not relegated Villa has an option to buy Archer for circa 30m+

That would change the above as the repurchase of Archer would be in year 2 registering a 2m+4.5m profit for Blades if you are relegated
Click to expand...
Also people have to take into account that if Villa do buy him back they have to play him or loan him out abroad. So chances are 50/50 still if united stay up. It’s a shame we weren’t in on the same Ramsey deal
 
Ndiayewillalwaysloveyou said:
So if we go down, Villa have to buy Archer no matter what? He might have a crap season or they may not want him next summer.
Click to expand...
Exactly. But it doesn't cost Villa any real money. We sell for 18m and save probably close to 1.5m in wages and we buy back for 20m. so that is a wash and we register a 20m profit this year from an FFP perspective and then we buy him and give him a 5 year contract and that is an FFP loss for of 4m a yr for 5 years
 

Eric_Brooks said:
Also people have to take into account that if Villa do buy him back they have to play him or loan him out abroad. So chances are 50/50 still if united stay up. It’s a shame we weren’t in on the same Ramsey deal
Click to expand...
I thought that too, Ramsy and Archer played well together and it would have been a really good purchase to get the two of them
 
Uncle mick said:
What if he is shit and we have to pay another 9m knowing he is shit
Click to expand...

Can I refer you to my earlier comment about analysing every transfer for every eventuality. I accept this is a forum to discuss these things but there is no evidence suggesting he is going to be shit. Ultimately nobody knows if he's going to cut it but he appears to have all the credentials to suggest he will be good.

No club will have 100% success rate will they but we must be fairly confidence to risk spending £18m on him. If people enjoy worrying about it then fair enough but my point is I'd rather enjoy getting excited that he might be amazing and keep us up. Isn't that what football is about?
 
Begley said:
It is only meant in jest :)
Click to expand...
I know :)

As was my suggestion earlier in the thread that you should have let us have him for free in appreciation of us not making more of a fuss about an incident that, let's not beat about the bush, has been worth hundreds of millions to Villa in the years since it kept you up :D
 
Begley said:
No chance of that happening, Villa will just get our maintenance man to unplug the goal line technology machine when we are playing you at home ;)
Click to expand...
Ahah got yer! Points deduction incoming..............
 

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