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Michael Tucker

Official: Ross Barkley Departs And Signs For Aston Villa On Loan

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Jasonb   
On 4/30/2021 at 5:07 AM, RobertoftheGiz said:

Not true - Loan fees and club playing the players wages covers the costs. If this was not the case the club would not be send +30 players per season out on loan.

Loaning of players and the fees associated are part of the clubs base business

I think the clubs pay a portion of the players salaries and perhaps in some cases the majority of them, doubt we ever recoup the full wage.

Though as a business concept if we cannot sell the player for a reasonable fee  then recouping some of the costs of having that player is a good thing to do. 

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42 minutes ago, Jasonb said:

I think the clubs pay a portion of the players salaries and perhaps in some cases the majority of them, doubt we ever recoup the full wage.

 

Pretty sure that ROTG post was being facetious here.  With ROTG  it goes roughly 30% serious / 30% joke / 40% both.

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17 hours ago, Droy was my hero said:

 With ROTG  it goes roughly 30% serious / 30% joke / 40% both.

True

however the loan system is part of the clubs business model; hence UEFA / PL voicing the idea of restricting the number of loans a club can do

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5 hours ago, RobertoftheGiz said:

however the loan system is part of the clubs business model; hence UEFA / PL voicing the idea of restricting the number of loans a club can do

Well yes and no.  The loan portfolio is in two parts.  Promising players bought cheap, and mistakes who failed to reach expectations and we'd like to cut costs on.

Yes, for a bank the bad loan portfolio is a consequence of the business plan for lending.  But it is not expected to make a profit*.  Likewise a big chunk of our player portfolio is expected to be unprofitable as we unwind it.

But yes, restricting the number of loans will affect us.  Loans come from successful buy to trade players, unsuccessful buy to trade players being unwound, and unsuccessful buy for first team squad players being unwound.  Any reduction will hit our ability to buy to trade very sharply.

 

*A bank might "create reserves" which means recognising early that these loans will produce losses, and then try to exit at that level or better.  But a football club would only do this rarely.

 

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http://thechels.net/2021/05/the-loan-report-april/

This months loan report from Juni concentrates on Barkley, & co
 

Quote

 

April’s Loan Report takes a look at some of the players Chelsea might be looking to move on this summer in an effort to trim some of the excess fat around the first-team squad.

It’s an endeavour that has never quite proved to be as easy as idle speculation on social media would have you believe, and it serves to highlight the work ahead for Marina Granovskaia and her team in the months ahead, at the end of a pandemic-affected season, and in a market still reeling from the financial impact of more than a year without fans in stadiums. FIFA’s proposals for stricter limits on loans for non-homegrown young players have been delayed due to the pandemic, but they will come in eventually, meaning clubs have to position themselves accordingly in the build-up to that happening.

 

Strangely no mention of Bakayoko.  

I'll copy this to the loan thread too, so we don't upset the mods  :)

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