Tottenham Transfer Talk - How Coutinho Loan Works
Tottenham Transfer Talk - How Coutinho Loan Works
Before you all get excited, we haven't signed Philippe Coutinho, I'm just using him as an example.
Just read something so thought I'd better explain for everyone the mechanics, or at least a part of it, for any potential Philippe Coutinho loan deal.
The comment I saw was that a loan fee of £21m (€22.77m - $25.50m), is just ridiculous and taken in isolation yes it does sound ridiculous, but if it is taken in the context of the bigger picture it isn't.
I don't know what the proposed loan fee is, I have heard €25m (£23.06m - $28m) so I will use that as it is in wages and that is the currency we are dealing with here.
Now I am using Coutinho as an example, but if Christian Eriksen isn't sold to Manchester United, as I am hearing he might have turned them down, then that might affect the potential for this deal.
Barcelona are prepared to pay all his wages, that €11.23m (£10.36m - $12.58m)
The Spanish club bought him from Liverpool for €142m (£130.94m - $159.02m) in 2018 plus bonuses, most of which won't be payable as a result of his unsuccessful spell.
Barcelona value him now at around €120m (£110.70m - $134.38m) I believe.
There is a suggestion that they will accept €90m (£83.02m - $100.78m).
Any loan deal will include an option to buy, probably, with the size of the loan fee, an obligation to buy clause.
Transfer fee next summer €90m (paid over 4 years).
Loan fee €25m
Total Cost €110m
Remember though we have not had to pay any wages for a year sp €11.23m can be deducted from this figure.
His loan has, therefore, cost €13.77m and his overall transfer. loan fee cost to us is €98.73m.
The loan fee is simply a method of reducing the transfer fee and spreading it over a longer number of years. Effectively he would cot €20m a year plus 4 years wages over the next 5 years.
His €11.23m wages equate to €215,961 a week which is basically £199,000 a week, basically the same figure Harry Kane is on and that we have offered to Christian Eriksen apparently.
Does the deal sound so far fetched now, especially if Daniel Levy negotiates down the asking price with Barcelona needing to raise cash after their summer outlay on Antoine Griezmann and desire for the return of Neymar?
1 comment
You show €90M transfer fee + €25M loan cost = €110M total cost, when it seems like it should actually be €115M total cost. Although I could be missing something for the €5M difference.